Monday, August 22, 2011
Online Banking Part.II
The only entities that have managed to sustain their existence are those that are backed by a bank, maintaining an independent identity. This allowed them to diversify their services, taking advantage of operational know-how and organization of their parent and thus offer very attractive prices. Boursorama is a convincing example of this model. Since its merger with Society General, Boursorama is no longer confined to the business broker but has become a real bank.
However, if the online bank has no place as an organization independent financial, recent operations have shown that online banking is now essential to any actor with a network. New entrants in the banking landscape have understood. Insurers having embarked on the adventure of assurfinance began with an offer to acquire or develop online banking in addition to the existing branch network.
The acquisition of online banks by banks should not be seen as a way to computerize the customer relationship. Indeed, banks are seeking to boost their network by opening branches. The agency is the best way to attract customers, offering Internet users the ability to simplify the management of operations.
However some players have managed to build a profitable business model around online banking service. This model is based on tactical development articulated in two phases:
(I) a startup focused on specialized and profitable activities. For example, the tactic is to capture customer deposits and generate commissions on high value added activities (securities, life insurance ...) and for which the customer is willing to pay.
(Ii) enlargement to daily banking activities (current accounts, credit card) which are less profitable because of investments in infrastructure require significant yield little and are subject to very strong competition.