Virtual Banking — Navigation durch Chancen und Risiken

Summary

The trendy concept of Virtual Banking incorporates two fundamental changes from the way banking services were understood and accomplished in the past. On the one hand, the “brick and mortar” branch loses its previous importance when bank transactions can be executed electronically anytime and anywhere. On the other hand, a network of loosely joined companies from different industries provides parts of what private and corporate customers perceive as one financial service.

The development of electronic delivery channels and the convergence of different industries strongly affect the basic efficiency of commercial markets. The free flow of information provides the customer with the choice between financial services from banks or non-banks located anywhere. This potentially alters the competitive landscape forever.

Traditional banks face the challenge of using the electronic delivery channels as an innovative supplement to their past strengths. Data-based customer segmentations and high-value-added information services enable virtual banks to reach a competitive advantage against traditional and emerging competitors. For the future position of banks, it is fundamental to control the network of service providers and the “face to the customer” by becoming the central navigator in the virtual banking business. Only in this way a tailor-made service range will be provided to each customer.