beyond pt 0 23/1
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beyond pt 0 23/1
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Traditionally banks have played an important role in the payment<br />
approval process. The trend towards the use of credit cards<br />
(versus cheques) has had (and still does have) the potential to reduce the<br />
role of banks in the payment loop. Banks have retained some control in<br />
this area to date as the card issuing body. The move towards SET in the<br />
online payment areas will re-intermediate banks back into the online<br />
payment approval process.<br />
The likely acce<strong>pt</strong>ance of some form of digital cash in the future could<br />
potentially disintermediate banks again from the payment approval process.<br />
Elimination of value is also possible in the sector. Banks now act as<br />
intermediaries in matching depositors with funds to loan applications. The<br />
function could move to brokered markets, and even to a direct market.<br />
With payments, the provision of EFTPOS enabling payments was a valuable service<br />
to bank customers. Now with services such as Telstra’s SureLink, the payment<br />
service is provided as part of a larger service. This commoditises the pure<br />
payment service.<br />
Interview: Tim Batten, National Australia Bank,<br />
IRG member, 12 July 1999<br />
Value has been eliminated by Internet trading: buyers can now trade for<br />
$30 per trade regardless of the value of the trade, whereas it would have been<br />
twice that cost. This also creates the opportunity for unbundling, for example for<br />
third party clearing perhaps.<br />
One of the reasons for the changes at the ASX is the possibility of losing to new<br />
competitors. The ASX is not a core service provider, but could be unbundled from<br />
this position, in fact disintermediated.<br />
The advent of digital certification will be important for the ASX. This will open<br />
possibilities for further unbundling and is a risk for brokers who currently play a<br />
‘certifying’ or risk management role for trades.<br />
Interview: Jason Anderson, Australian Stock Exchange,<br />
IRG member, 12 July 1999<br />
New value and services<br />
Greater use of e-commerce is also opening new opportunities in<br />
this sector.<br />
Regulatory reform, competition and the potential of the new technologies<br />
are breaking down distinctions between the roles that companies in the<br />
banking and finance sector play.<br />
E-commerce over the Internet has enabled banks to move into stock<br />
trading. The Commonwealth Bank’s ComSec is a predominantly online<br />
share trading service, although it does provide a supporting telephone<br />
service. The ANZ has recently announced an alliance with E*TRADE<br />
Australia for ANZ customers to trade securities online.<br />
There is a trend for banks to offer complete financial services to<br />
individuals and organisations. This typically includes investment advice,<br />
insurance, superannuation, share trading, and funds management.<br />
E-commerce is creating new value in the banking and finance sector. E-commerce<br />
assists organisations in becoming virtual CFOs for small businesses by handling all<br />
financial services and providing accounts receivable and payable services. The aim<br />
is to provide a full service from operational through to strategic.<br />
For consumers, the conce<strong>pt</strong> is to package services around ‘life events’ (marriage,<br />
retirement) and to provide focussed advice and services.<br />
Internally, e-commerce is moving processes from the bank to the customer, for<br />
example instead of a loan officer completing an application in a face-to-face<br />
interview, the customer completes a form on the web.<br />
Interview: Tim Batten, National Australia Bank,<br />
IRG member, 12 July 1999<br />
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