(December 8 – 09:40 ET) – Banks
and securities firms must pursue
aggressive Internet strategies to
survive the competition of an
evolving marketplace, says Deloitte
& Touche in a new financial
services report. The Millennium Top
Ten: Year 2000 Global Banking &
Securities Industry Outlook
predicts that the leading financial
services firms risk failure if
they don’t go online.
Deloitte says “the ‘normal’
pace of business has been
devastated by the internet which
is “changing the rules for the
financial services industry”. This
is putting pressure on financial
firms to respond. Wayne Snider,
regional industry leader for
Deloitte Consulting’s Financial
Services practice in Canada says,
“Banks and securities firms will
need to move beyond a more limited
initial e-Business response,
otherwise they could be left in a
weak position as competitors
aggressively move towards more
radical transformation of their
business model.”
While the rush to the Net is
clearly essential, Deloitte
cautions that Internet strategies
must be linked to sound, innovative
business models to survive in the
long term. “But what financial
services firms must realize is that
using an internet-based delivery
channel may ultimately alter the
nature of their business, increase
risks, and change how they
bring value to their customers and
shareholders,” says Frank
Kolhatkar, executive director of
operations for Deloitte &
Touche’s Global Financial Services
practice.
-IE Staff
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