Internet banking: from new distribution channel to new business models
by Feng Li
International Journal of Business Performance Management (IJBPM), Vol. 4, No. 2/3/4, 2002

Abstract: This paper examines the evolution of internet banking in the UK. Today, most banks have adopted the so-called multi-channel strategy where the internet is one of many channels through which customers can conduct their banking. However, this strategy can be implemented through different business models and it is only effective when combined with new strategic thinking, business processes and product and service offering. A review of existing studies on internet banking highlighted two prevailing scenarios based on two distinctive sets of strategic thinking. In this context the paper identifies eight models of internet banking based on recent empirical evidence gathered in the UK and highlights several emerging issues. The paper concludes that the increasing deployment of the internet and related technologies is shaking the foundation of the banking industry. Simply deploying the internet as a more efficient distribution channel will not bring sustainable strategic advantages. To compete effectively, banks will need to embrace a new set of strategic thinking, based on the ''unbundling'' of banking services and processes and the ''deconstruction'' of the integrated banking model.

Online publication date: Sun, 13-Jul-2003

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business Performance Management (IJBPM):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com