(October 15 – 22:00 EST) – David Komansky, chairman and chief executive of Merrill Lynch & Co. Inc. appeared on PBS’ Wall Street Week with Louis Rukeyser this evening to talk up Merrill’s recent strategic shifts.
In the U.S. the firm has gone from mostly ignoring the Internet to looking like the latest entrant into the e-commerce mall. Back in June the firm announced with great fanfare that it would introduce online trading in the U.S. in December.
In the meantime the firm has introduced more than just stock trades on its site. It is now leveraging its web site into a shopping portal for over 400 retailers – you can now buy everything from stereo equipment to jewellry online through Merrill’s site. The firm is even hosting web auctions.
Komansky says the initiative is not designed to compete with Amazon.com or eBay, but rather he sees it as part of the firm’s attempt to manage its’ clients full financial relationship. “It just happens that it takes a payment system to work, and we have that payment system,” said Komansky. The site allows customers to buy all this stuff online using the firm’s Visa cards on its popular cash management account.
The e-tailing initiative aside Komansky says that Merrill is on track to deliver online trading in December. A former retail broker himself, Komansky says he doesn’t see this development putting any retail brokers out of work. “Our core competency going forward will be providing the advice and guidance of a professional financial consultant along with cutting edge technology.” Merrill’s strategy is not to compete on price in the online arena, but to have top-notch technology and to compete on content.
Komansky was also very upbeat on the future of the brokerage business. “This could be a Golden Age for this industry, particularly for those who can compete on a global basis.” He said that Merrill doesn’t need a merger with a bank to realize its dreams, despite persistant rumours of a deal with Chase Manhattan; but he was very hopeful of the prospect of a bill that would finally dismantle Glass-Steagall, alowing banks, brokers and insurers to marry up.
– IE Staff