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    Financial Web Services

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    1. Name and describe the four types of services provided by financial services firms on the web?

    2. Explain the two global trends impacting the structure of the financial services industry and their impact on online operations.

    3. How have travel service suppliers benefited from consumer use of travel Web sites?

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    Solution Preview

    While this list differs depending on who one reads, the traditional four are credit cards, deposit banking, insurance and investments such as mortgages and basic brokerage services.
    For credit cards, many of the issues that plagued the industry in 1999-2001 have been solved. Security remains an issue, but the existence of things like temporary credit cards (good for single purchases) have helped solve some of the security concerns. As early as 1999, banks were advocating "data mining" so to identify future customers of online credit (Clemons, 2000).

    Deposit banking has low profit margins for all except those particularly large accounts. Yet, e-commerce in banking increases efficiency, lowers transaction costs and is global in scope. In many ways, since the bank itself controls this circulation of cash, it is invested in its security (Chao, 2007). The internet bank can function at 15% of the cost of a normal, physical bank.

    Investments of all sorts are a part of e-commerce. This includes brokerage, stock investing and money markets. Like in banking, investments online have greater communications between investor and broker. The scope ...

    Solution Summary

    The solution assists with naming and describing four types of services provided by financial services firms on the web.