Financial services and the Internet ‐ what does cyberspace mean for the financial services industry?

Financial services is undergoing a period of unprecedented change ‐ new products, new entrants, mergers and acquisitions, downsizing … and now another new delivery channel: the Internet. The performance attributes of the Internet are related to both the needs of consumers and the nature of financial services products. Suggests loans, cross‐border services, payments and “knowledge/advice” as areas of opportunity in the early development of this new marketplace. Explores scenarios for the future development of “bancassurer” offerings and for electronic commerce as a whole. Draws on some of Hyperion’s recent experience in helping to launch electronic commerce services on the Internet, reengineering of financial institutions and electronic cash, to suggest approaches for organizations wishing to participate in this new “marketspace.” While businesses can now begin to develop strategies for exploiting cyberspace, argues that existing organizational structures may be inappropriate.