Multiple Case Studies on the Critical Success Factors of Internet Banks: Implications for Korean Market

Abstract

Special banks primarily using Internet have different properties in transactions with customers, risk management, capital strength, and branch networks compared with general banks. The success and failure factors of Internet Banks have been explained only by the economics of scale, and the learning and experience effects of Internet Banks based on the perspective of ecologies. In this study, the success factors of Internet Banks are investigated based on the strategic choice by organizations and the resource-based view of the firms instead of an organizational ecology perspective. To this end, 31 major Internet Banks have been classified by the size and profitability of banks and three strategic groups have been derived. The three representative company cases were analyzed, and the critical success factors of Internet banks were derived. Implications for Korean market were discussed.