A survey of online e-banking retail initiatives

Peter B. Southard, Keng Siau
2004 Communications of the ACM  
Dewan and Seidmann [4] predicted the e-banking revolution would lead to two classes of surviving banks: very large banks and small niche ones. This prediction was echoed by Holland and Westwood [6] , who also concluded that smaller banks could compete by offering portals to the services offered by larger banks. Wind [12] emphasized that banks should use e-banking to focus on customer needs in order to gain the strongest competitive advantage. This study surveyed two different segments of the
more » ... segments of the U.S. retail banking industry to determine if differences existed between them in the utilization of online Web-based technologies, or e-banking. With the banking industry appearing to polarize into very large banking organizations and smaller community banks that serve niche markets, it is important to determine in what ways each group of banks is utilizing e-banking technology. The use of large versus small banks was suggested by the study done by Holland and Westwood [6], who felt that smaller banks could develop a product-market strategy to compete with large national banks through the use of technology. This comparison was also suggested by Dewan and Seidmann [4], who noted how the industry is polarizing, with very large banks and small niche banks at either end of the spectrum. A listing of the five largest banks in the U.S was compiled based on information obtained through the Web site of the Federal Deposit Insurance Corporation (FDIC). The five banks selected from the community banking sector were chosen randomly. The Web sites of these 10 banks were then reviewed for content and features. The Web features were classified into five areas: informational, administrative, transac-Both researchers and practitioners in the financial arena have trumpeted the need for financial institutions to broaden their delivery systems by incorporating Internet technology and moving to the new e-banking paradigm. The Internet has already revolutionized the banking industry yet many banks, particularly in certain segments of the industry, are not taking full advantage of available technology and are therefore falling behind their competition [9] . Customer demand is forcing banks to provide their services online. There are two successful paths they can take: to grow, or to specialize in providing localized services and information.
doi:10.1145/1022594.1022601 fatcat:cgh4dg5buzb3jhfhhtgdx5lfzq