Online Brokerages Must Add Banking Services to Survive, Says Meridien Research Report.Business/Technology Editors NEWTON, Mass.--(BUSINESS WIRE)--March 14, 2001 Responding to the repeal The Annulment or abrogation of a previously existing statute by the enactment of a later law that revokes the former law. The revocation of the law can either be done through an express repeal of the Glass Steagall act, a volatile market and changing consumer demands, online brokerages around the globe are adopting a convergence strategy that includes adding banking services to their product portfolio, says a new report from Meridien Research. "We believe an expanded product portfolio is imperative for online brokerages to survive," say authors Christine Barry and Jennifer Schmidt. "This strategy is ideal for them to strengthen customer relationships and improve the stickiness See sticky. of their sites. It also reflects a consumer preference for convenience and a shift back toward a full-service model." Online brokers have three choices to expand services to include banking: merging, allying with or acquiring a bank; creating their own technology in-house; or licensing banking platforms from outside vendors. Surprisingly, suppliers of online banking solutions, not online brokerage solutions, have taken the lead in providing the technology needed to integrate brokerage and banking services. To illustrate the potential for new competition, the report provides case studies of Ameritrade's alliance with NetBank, Banque Bipop (France) with i-Bourse, and Citigroup. About 10 million individuals worldwide have online brokerage accounts Brokerage Account An arrangement between an investor and a licensed brokerage firm that allows the investor to deposit funds with the firm and place investment orders through the brokerage, which then carries out the transactions on the investor's behalf. . Most of them are in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , so the greatest growth should occur in Europe in Asia. Korea, where more than 60% of trades are placed online, may point the way to the future, the report notes. More information about purchasing the report, "Online Brokers: Taking Stock in Banking" can be obtained from sales@meridien-research.com or by calling 617-796-2800. A summary and a table of contents are available on www.meridien-research.com About Meridien Research Meridien Research of Newton, MA, provides analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. research services to users and providers of financial industry technology. Meridien Research targets three technology areas of strategic importance to financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. firms: eFinancial Services, Trading & Risk Management and Customer Relationship Management. Each practice delivers quarterly reports and monthly briefs, detailing new issues and challenges. Visit www.meridien-research.com/press to register for announcements as new research becomes available. For media relations, contact Parallax parallax (pâr`əlăks), any alteration in the relative apparent positions of objects produced by a shift in the position of the observer. In astronomy the term is used for several techniques for determining distance. LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control at 1.781.235.7025 or parallax@meridien-research.com. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion