Small business banking: set strategy or face atrophy

Article Abstract:

The dominance of the banking sector over the small business market is being threatened by the encroachment of nonbank competitors into this highly lucrative segment. For years, banks effectively leveraged their branch systems to provide conventional products to small businesses, including credit lines, checking accounts and cash management services. However, with the help of technological advances and the removal of regulatory constraints, nonbank competitors are gaining headway into the small business sector. Main players include American Express Co, General Electric Capital Corp, Fidelity Investments and Merrill Lynch and Co. Banks can stave off their new competitors by defining the market, addressing complexity, partnering with so-called complementors, exploiting technological changes, offering direct credit and implementing distribution, manufacturing and information services strategies.

Commercial banks, Financial services industry, Finance, Financial services, Small business, Market share

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Viva la revolucion

Article Abstract:

Retail banking in Latin America has grown into a dynamic and innovative market in the 1990s. After suffering for decades due to poor management under state control, retail banks in the region are now enjoying an unprecedented level of competition and are offering more products and services than ever before. Consumers are the main beneficiaries of this transformation of the retail banking industry as checks, credit and debit cards, pension funds and bank financing for homes and automobiles become more accessible. However, there are still challenges to overcome before retail banks in Latin America can match the level of sophistication of their counterparts in Europe and North America. These problems include a lack of reliable customer information and shared electronic funds networks, poor technology and a shortage of innovative middle managers.

Retail Banking Services, Retail banking, Latin America

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Whither debit cards?

Article Abstract:

Consumer spending through debit cards is anticipated to grow at a 40% annual rate for the next few years from 1998. Considered as relationship tools that help bind customers more closely to banks, debit cards have become much more popular than credit cards. Offline debit card transactions allow banks to earn higher fees and permit customers to gain at least a day of 'float' on their funds through Visa or MasterCard credit card systems. These fees also represent a significant portion of banks' interchange fees, contributing to their annual revenues. However, some experts view online transactions as much better and secured than offline systems because of a system need requiring customers to punch in a personal identification number before a purchase is routed through a regional network.

Credit Card Issuing, Functions related to deposit banking, Electronic Banking Svcs, Consumer Bank Credit Card Svcs, Analysis, Services, Bank credit cards, Electronic banking, Electronic funds transfer systems, Debit cards

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