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    E-Commerce: Emerging Technology

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    In your opinion what would be a good emerging technology or service not currently or readily in use in banking industry. (Perhaps something like smart cards replacing paper or atm use, or any other idea, etc.) Discuss what the technology is and how it works, benefits it will provide, and any potential negative aspects of the technology.

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    The industry is very mature and the services provided have been around for years. Although the banking and financial services industry has gone through some consolidation, the services offered are mostly the same. The larger players in the industry will survive with their proprietary products and strong franchisee. The barriers to entry will increase going forward. The players with huge financial muscle will be able to influence substantial power on the fringe players by their aggressive pricing, which will create hindrance for the smaller players. Economies of scale will play an important part too in the future. Thus I would suggest the use of latest technologies such as e-commerce and wireless banking.

    E-commerce based banks would derive their profitability from higher end services such as treasury, insurance , personal finance advisory, forex management. Also cash management services would come to the forefront of e-commerce based banks.

    The distribution of insurance through ecommerce is unique, offering a single window for all banking needs. It would enable customers to view and transact with the bank from their computers 24 hrs / 365 days a year, from anywhere in the world. Now there is an integration of system of the Bank with its vendors and customers with the help of new technologies such as XML, EAT and wireless protocols. New technologies have helped in empowering employees at ...

    Solution Summary

    This in-depth solution addresses the usage of e-commerce in the banking industry and explores the potential benefits and costs of the emerging technology. It gives real-life examples of where e-commerce can be integrated and advice on how banks can build consumer loyalty. References used are included.