Cashing in on annuities

Article Abstract:

The banking sector is successfully marketing annuities, increasing its market share in both variable and fixed annuities. In 1998, its total share of the annuity business jumped from 10.6% to 11.2%, which is equivalent to $11.2 billion in sales. This clearly shows the feasibility of convergence, also known as cross-industry marketing, if certain conditions are met. For one, banks became more open to a sales-oriented culture. Another, they learned how to partner with insurance companies, which created variable annuity products distributed through the banks. Credit is due to the investment brokerage units of banks, which enhancing their sales of variable products. The staff of branch offices should also be commended for learning how to directly sell fixed annuities and recommending prospective buyers to investment advisers. Despite these gains, however, the full potential of the market has not yet been tapped by banks.

Commercial Banks, Direct Life Insurance Carriers, Life insurance, Annuity Insurance, Services, Marketing, Annuities

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Payoff deferred

Article Abstract:

Online banking has not yet achieved its full potential despite the growth of the Internet over the years. Almost all banks are now offering online services even if the profits from such activities remain negligible. This lack of profitability in online banking can be attributed to the fact that the relative proportion of online customers is still small. Despite these hard facts, small and large institutions are investing heavily in online banking. Online banking is seen as an effective strategy to retain upscale customers. All banks believe that online services provide a competitive advantage. The key is to establish a realistic time period for achieving online profitability. Online banking profitability can be realized through differentiation of product offerings. Banks must also play an active role in shaping the future of online banking.

Functions related to deposit banking, Bank Computer Services, Management, Home banking, Home banking services

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The interactive imperative

Article Abstract:

Financial institutions can succeed in their electronic commerce activities by conducting careful planning. In creating the appropriate framework for e-commerce, banking companies should implement the right information technology and offer greater call center support, and make sure that these activities are aligned with the broader organizational strategy that is advocated by top management. The information technologies required in e-commerce are interactive software that allows electronic sales management, data warehouse transformed into a data mall, and analytical tools that assist in the interpretation of customer behavior. As for the call center, it should not only handle complaints but also help users make transactions through the Web site of the company. Techniques for providing these services are discussed.

Banking Institutions, Depository Credit Intermediation, DEPOSITORY INSTITUTIONS, Planning, Banks (Finance), Electronic commerce, E-commerce

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