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Strategies for the Financial Services Industry in the Internet Age

  • H. U. Buhl
  • D. Kundisch
  • A. Leinfelder
  • W. Steck

Abstract

Globalization of financial markets resulting from both IT (particularly Internet standards) and increasing homogeneity of regulation has strongly affected the environment, financial services companies are operating in. Given these changes on the market, innovation is not a choice, but a necessity to survive. Observable today, however, are defensive strategies and poor service quality. In this paper based on investments in trust relationships with customers we propose Sophistication (fit) Banking enabled by IT and qualified staff and show first steps towards the implementation of a sophistication banking strategy. While traditional markets are characterized by shrinking margins and declining shareholder values, which can easily be explained considering the digital character of financial products, new intermediaries for customer-centered Sophistication (fit) Banking have the opportunity of becoming spiders in the web and increasing shareholder values constantly.

Keywords

Financial Service Euro Area Customer Relationship Management Customer Relationship Strategic Option 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Wien 2001

Authors and Affiliations

  • H. U. Buhl
    • 1
  • D. Kundisch
    • 1
  • A. Leinfelder
    • 1
  • W. Steck
    • 1
  1. 1.Department of Information SystemsUniversity of AugsburgFederal Republic of Germany

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