Abstract The purpose of this paper is to review the existing research on real world strategies of implementation of technology and consolidation and to draw conclusions towards recommendations of go-forward policies for harmonious and profitable future operations in retail banking.
Table of Contents
1. Introduction
Overview of the Research Project
Organizational and Environmental Profiles
Banks and the Financial Services Industry
Regulation and Deregulation
Consolidation Technology
The Human Element/Human Resources
Scope of the Research
Limitations of the Research
2. Literature Review
3. Methodology
Marketing
Strategic Alliances
Successful Systems Integration Business Case
Customer Internet Use
Geographic Impact
Regulation
Operational Risk
Human Relations Considerations
4. Data Analysis
5. Summary, Conclusions, Recommendations
References
From the Paper "The banking industry has been impacted by a combination of technological, sociological and commercial factors leading to changes in delivery of retail banking services which are in common use today but were not even envisioned in banking business plans as little as a decade ago. The impact of information and communications technology and the effects of banking industry deregulation have combined to create an environment in which the globalization of markets has led to bigger, more diverse markets and increased competition. The effect has been nothing short of a revolution in the structure and priorities of financial institutions, affecting all areas of retail banking: not only the products and services, but also operations, management and employees."
Abstract A merger occurs when two or more companies combine to form one, where the buying firm absorbs all the asset and liabilities of the selling firms. This paper discusses the necessity for bank mergers in order to cope with the changing industry. It examines the six main reasons why companies merge and the different types of merger that exist. It uses as an example, the successful merger between Nations Bank and Bank of America.
From the Paper "Larger mergers may create larger assets for the company, but bankers are still left in the dark with what to do with those assets. These days, auto dealer are more likely to handle auto loans, credit cards are received through the mail, and mortgage brokers can provide great deals on mortgages. Not to mention the invention of online banking. Now there are online services that will search the Internet to get the best prices on a CD?s, credit cards, consumer loans and mortgages. Banks are starting to find that they are now not only in competition with other banks, but with software companies as well."
Abstract This paper is a personal research project about online banking in the United Kingdom. It describes its history, how it works, security issues and its advantages and it introduces online banking facilities. It provides an appendix summarizing the services of each of the main British banks.
Table of Contents
What is online banking?
How online banking works
The security of online banking The advantages of online banking The disadvantages of online banking Prediction of the prospects of online banking.
From the Paper "The online banking will be a step to a new stage in the future. By that time, the banks will definitely offering more attractive services online and the competition of online banking will be complicated because more banks will have online banking services. Another progression is the development of wireless banking such as Digital TV and Mobile banking or so called WAP (Wireless Application Protocol). Nowadays, mobile phones are used everywhere, and many leading telecom companies and software companies have joined the WAP forum. Such as Nokia, Ericsson and Motorola."
Abstract This paper presents a marketing audit of Bank of America, looking at the many changes that have taken place over the past four years, through a variety of merger and acquisition activities that have posed numerous marketing challenges. A large section of the paper is primarily concerned with consumer and small business retail banking and credit card activities. The author has also included some illustrations and tables for clarification.
Outline:
Executive Summary
Environmental Aspects
Markets
Technology
Customers
Marketing
Objectives
Strategies & Tactics
The 4 Ps
Products & Prices
Promotion
Place
Profit & Loss Analysis
Conclusion
References
From the Paper "Bank of America, completed its acquisition of MBNA on Jan. 1, 2006. At the close of this $35 billion acquisition, Bank of America had "...40 million active credit card accounts on its ledger, making it one of the leading worldwide payments-services companies and issuers of credit, debit and prepaid cards based on total purchase volume" (CBS News, 2006.). A few years prior, on October 23 of 2003, Bank of America announced its intent to purchase Fleet Bank for $47 billion. At the time, Bank of America was already the industry leader in consumer banking. The merger gave Bank of America immediate access to the northeast region of the United States. "The new BofA would have 5,700 branches and control 9.8% of the USA's bank deposits" (USA Today, 2003).
"Over the past few years, Bank of America has not been the only bank to take part in merger and acquisition activities within the banking industry. Consolidation within the industry has been on the rise. In January of 2004 J.P. Morgan Chase bought Bank One. In May of 2004, Citizens Financial purchased Charter One while SunTrust purchased National Commerce. In May of 2005, Wachovia purchased Golden West bank. Within the past 20 years, the industry has experienced a massive consolidation. According to the American Banker's Association, in 1987 17,325 banking institutions existed. By the end of 2005, this number had shrunk 8,832. At the same time, the number of banking offices increased from 84,543 to 92,379 and the number of branches increased from 67,218 to 83,547. Merger and Acquisition activities varied greatly by state, size, and purpose."
Abstract In today's environment of increasing globalization electronic banking, otherwise known as commerce or EFT, has become a daily life activity in our computer savvy society. Notions of banking and finance have changed over the last few decades particularly at the personal level with the increasing use of personal computers and online services. Strengthened Internet protocol and user friendly software have allowed for an increase in virtual banking and a decrease of paper records, files and documents against a backdrop of consumer concerns about compromised safety. Given this current environment of global electronic banking, this paper considers whether today's electronic banking is sufficiently secure enough to deal with large cash flows for people and companies.
A look at whether the present effort to improve the securities laws in the U.S. as well as the financial reporting and disclosure laws is achieving its objectives.
Abstract This paper examines the current effort at reform of securities laws in an attempt to determine whether those reforms will be effective in avoiding another Enron-type crisis. The paper reviews literature relevant to this topic and makes an assessment as to the viability of the reforms in view of the scope of the problem. A summary of the research is provided in the conclusion.
Executive Summary and Synopsis
Introduction
Explanation of Clarke and Oliver Observation
Analysis
Financial Statement Composition Today
"Patching Up" Initiatives
Sufficiency of Initiatives to Date
From the Paper "However, in contrast to the "on market" exchanges, derivative transactions that are conducted "off market" (these are, in effect, non-standard direct contracts between bilateral parties), have attracted increasing attention from regulators with good reason: "Over the past decade or so, the volume of such transactions, across a wide swath of asset classes and instruments, has been extraordinary" (Warner 2001, p. 5). In the market in which Enron competed, schedules of fees for buying and selling securities are not fixed, and dealers derive their profits from the markup of their selling price over the price they paid. The investor may buy directly from a dealer willing to sell stocks or bonds that he owns or with a broker who will search the market for the best price."
Tags:securities, exchange, commission, sec, collapse, investors, corporate, information
Abstract This paper describes the privacy issues inherent in online banking, as well as practices in live banking. The paper describes the problems of online privacy and explains how certain practices, such as fingerprinting, have cut both bank fraud and more serious crimes. The author contends that because there are inherent risks to customer privacy, it is essential that there be a single standard for banksecurity and reporting to federal agencies.
From the Paper "So indeed, why should bankers be turned into federal snoops? The proposal is supposed to attack money-laundering techniques employed by drug traffickers and other criminals who hide illegal profits. Such methods include wire transfers, bank drafts and "smurfing," the practice of cutting transactions into lesser amounts that don't have to be reported as suspicious under the $10,000 bank-reporting laws established under President Reagan. (Maier, 1999)"
Abstract With the advent of the Internet and global connectivity, net banking is becoming increasingly popular all over the world. This paper discusses the nitty-gritty of net banking, the evolution, the merits and advantages of online banking, and also the disadvantages and limitations of this 20th century development.
From the Paper "Banks see their online banking services as a means of customer retention and cost saving. From a customer perspective, online banking is convenient and provides savings in both time and costs. This is due to banking being accessible 24/7 from the home or office, the need for visits to the physical branch is reduced and banks passing their reduced costs to the customer in the form of lower fees and higher interest rates. However, Online banks must provide a service that is user-friendly and should instill trust in customers that the level of security provided will protect their transactions and personal information. Online banks face the challenges of ensuring that their security and privacy measures keep up with the rapid developments in technology. Also, it is important that banks integrate their online services as an extension of the existing services through their brick-and-mortar branches."
Abstract Saving money for a rainy day. Piggy banks loaded with pennies. Preserving the summer harvest to eat in the long, cold months of winter. There is something innately human about our need for security--to have something on hand just in case. The Social Security Act of 1935 was born out of just such a need, when America was in crisis. Although travelers to the New World had wanted to escape from Europe and its traditions, the Social Security Act is modeled on a system that had its roots in Europe. Why did the Act come into being, what did it entail and how has it changed are all questions this paper will attempt to address.
Abstract This paper examines the commercial banking industry and presents the statistical facts of several financial services firms. The paper discusses Citigroup, Inc., Bank of America, J.P. Morgan Chase, Wachovia, and Wells Fargo. The paper describes how applications of new technology have radically transformed the financial services industry.
From the Paper "In 2003, Citigroup, Inc. was the world's largest financial services firm. It sold $94,713 million by December at annual growth rate of 2.3% (Caione 2004) and netted profits at $ 17,853 at an annual rate of 16.9%. With its numerous subsidiaries, Citigroup offers banking loans, asset management, insurance, investment bank and virtually every other retail and corporate financial service conceivable through its more than 3,000 bank branches and finance offices in the US and Canada and 1,500 other locations in close to 100 other countries worldwide (Caione)."
Abstract This paper begins with a brief explanation of what derivative securities are and what purpose they serve. Next, the paper briefly explains how derivative activity level can be monitored and then takes a look at the derivative disasters that befell the Baring Brothers of London and the local government of the city of Orange County. The paper explains that these disasters were a result of careless strategies with derivatives and examines the lessons learned from these two disasters. Finally, the paper suggests measures that can be taken to prevent such disasters from happening again.
From the Paper "A Derivative is a contractual relationship established by two (or more) parties where payment is based on (or "derived" from) some agreed upon benchmark. Derivatives are risk-shifting devices. They are most frequently used to reduce exposure to changed in foreign exchange rates, interest rates, or stock indexes."
This in-depth paper a provides a benchmark pertaining to the careers of bank managers in Pakistan, while also delving into the banking industry in the Islamic run country.
Abstract This well-researched paper examines Pakistan's evolving and constantly developing banking industry from the 1940s and up the present. The writer of this paper supplies in-depth insight into the pressures as well as the numerous financial and cultural demands and expectations currently facing bank managers in both the private and public banking sectors. This paper analyzes Pakistan's political history and its resulting impact on the country's banking industry. The writer of this paper delves into Pakistan's socio-political culture which greatly affects the vision, goals and leadership style of the country's bank managers. This paper also contains various financial tables, lists and illustrated graphs pertaining to this particular topic.
Table of Contents:
Abstract
Introduction
Political and Financial History Intertwined
Effect on Pakistani Bank Managers
Cautionary Tales
The Opposite Side of the Coin
Pakistani Banking Structure
Pakistani Banking: Recent Past
Upsetting Events in Pakistan's Banking History vis-a'-vis Managers
The Best Bank Other Banks Challenges for Managers in the Banking Industry
Current Initiatives
Literature Review
Summary
Statement of Research Question
Methodology
Findings
Manager One: NBP Managers
Manager Two: New Hire from Lahore Business School
Manager Three: Year 2000 Graduate of a Business College in Germany
Manager Four: Islamic Bank Manager
Manager Five: Graduate of Irish Business College
Manager Six: Recently Promoted Manager at a Local Branch in the Capital
Manager Seven: Human Resources Manager at the Islamic Bank Manager Eight: Temporary Branch Manager in Small Town
Manager Nine: Former Bank Employee, Government Bank Manager Ten: Graduate of Lahore Business College (2)
Bank Manager Career Themes
Discussion
Conclusion
Appendix A: Islamic Modes of Financing
Appendix B: Recent Listing of Banks Operating in Pakistan
Appendix C: Questions for Bank Manager Interviews and Process
Appendix D: Recommendations by Mehmood-Ul-Hassan Khan
References
From the Paper "The best way to determine what the future might hold is to understand the past and the present, and add to that the changes seen by experts on the horizon. Therefore, constructing the history of Pakistani banking forms a major part of the current research; outlining contemporaneous changes and decisions regarding Pakistani banking made by its most senior officials is also important to understanding the influences on bank manager career tracks and attitudes. In addition, an extensive literature review of those factors that generally contribute t manager career orientation in any business will help understand the Pakistani bank managers' positions. Interviews with at least a few current Pakistani bank managers will display the attitudes they currently hold, and provide insight into what they expect in the future and what would make them more or less career-oriented."
Abstract This paper discusses individual commercial banks and how they service their customers. It analyzes the quality of banking services that a customer gets and how the services are provided to the customer. It describes the three main channels for banking today - through branches, through the internet and on telephone.
Table of Contents:
Introduction
Chapter I
How Internet Banking Has Grown In The Last Decades, Especially Regarding New Product Being Offered
Evolution of Internet Banking Present Status and Profile of E-Banking Offered By Banks Nature of Product Offered
Chapter II
The Operations of Banks In Different Areas: What Is The Contribution?
Effects of E-Banking on Banking Operations: What Is The Contribution of Internet Banking Toward The Business?
Chapter III
General Benefits of Banks From E-Business and Other Communication
Performance Measurement
Chapter IV
Reality of System Risks and Control
Conclusion
From the Paper "To understand the relationship that can develop between the Internet and banks, one has to first understand the nature of both these items. The first to be understood is the banks. So far as banks are concerned, at the beginning of the twenty-first century, central banking which is the source of all banking activity would appear to be at a crossroads in their future. Earlier it was the lender of last resort, active participant in stabilizing economic fluctuations, and now the present main function is being the guardian of price stability. As it is still the monetary authority, much is expected from them. At one stage, fiscal policy was considered to be the main instrument of economic policy, the situation changed to an ascendancy of monetary policy and that was noted by the late 1980s in most parts of the industrialized world. This had a lot of implications for the role of the central bank."
Abstract The following paper begins with a basic review of how commercial banks make money. It then examines the definition of what constitutes a high performance in the banking world of finance. Finally, it assesses ways in which banks can achieve the maximum level high performance banking from a financial standpoint and examine the ways in which current public perceptions of banking and aspects of the new technology of Internet banking can affect the financial yield of banks.
From the Paper "Firstly, how do banks make money" A commercial bank (as opposed to, for instance, a credit union) has two basic functions: to accept deposits of money and to make loans. The main ways a commercial bank makes and creates funds is by making loans and by purchasing government bonds from the public sector. (McConnell and Brue 283-283) The goals of a commercial bank to remain "in business" must be twofold. One goal is that the bank must make a profit, the other goal is safety, which is traditionally defined to lie in liquidity?specifically, by the bank retaining such liquid assets as cash and excess reserves.?
Abstract This paper discusses central bank independence and the effects on the U.K. economy of Labour's decision to grant the Bank of England independence in 1997. It analyses inflationary and interest rate data from the years preceding and following Labour's election and cites evidence suggesting that it is inappropriate to ascribe all of the credit for recent low interest rates and inflation solely to the government's decision to make the bank independent.
Outline
Introduction
Birth of the Bank A Growing Remit
The Independent Bank The Rationales For and Against Independence
The Effects of Central Bank Independence on the British Economy
Conclusion
From the Paper "The Bank of England was established in 1694 as the UK was preparing to embark on a huge expansion in trade activity. A substantial financial source was necessary to provide the country, most especially London, with the liquidity necessary to drive the economy to this new frontier. The argument gained certain impetus after the Glorious Revolution when both William of Orange and Queen Mary simultaneously ascended the throne in 1688. Noted political economist of the time William Petty had observed the success of the Dutch in establishing a central bank in the form of the Amsterdam Wisselbank that had control over coinage, credit facilities and exchange."
