Internet Banking

Internet Banking in Europe: a comparative analysis Francesca Arnaboldi, Dipartimento di Economia, Università di Milano1 Peter Claeys, Grup AQR IREA, Universitat de Barcelona Abstract A key strategic contend for banks is the implementation of internet banking. The flicker and mortar model that complements undefiled branch banking with online facilities is competing with pure internet banks. The objective of this paper is to compare the performance of these two models across countries, so as to taste the role of differences in the banking system and technological progress. A clouded cluster analysis on the performance of banks in Finland, Spain, Italy and the UK shows that internet banks are hard to distinguish from banks that follow a click and mortar dodge; country borders are more important. We and so explain bank performance by a group of selected bank features, country-specific economic and IT indicators over the period 1995-2004. We find that the system of banking groups to incorporate internet banks reflects some competitive edge that these banks stand in their assembly line models. Extensive technological innovation boosts internet banking.

JEL Classification: G21, O32 Keywords: Banks, Internet, Innovation Corresponding authors address: Francesca Arnaboldi, Dipartimento di Economia, Università di Milano, Via Festa del Perdono 7, 20122 Milano. email: farnaboldi@unimi.it. 1 1. INTRODUCTION Alternatives to classical branch banking have attracted increasing attention as Internet usage started to spread. Banks started to use the internet not just now as an innovative payment method and to increase client convenience, but also as a way to press costs and enhance profits. Fierce competition between banks, two in retail and wholesale, has forced banks to find new and economic areas where to expand. But Internet banking seems to represent a viable strategy also for new entrants in the banking sector. Two main business models may be identified in... If you want to get a full essay, order it on our website: Ordercustompaper.com

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