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Electronic Commerce (2)Filed Under: General

Electronic commerce can generally take place between two businesses, between a business and an administration, or between a business and a consumer. In the following, only the relationship between a business and its customers will be investigated. The object of the analysis is the financial sector.

Financial institutions hold special positions in the business cycle and differ in many ways from other corporations or firms. Economically, they perform the functions of liquidity equalization, of processing information and of conducting several transformations. Special laws and directives are applied and the services offered are abstract and immaterial (Büschgen, 1998). Moreover, these services need explanations and need to integrate an external factor: the bank customer.

In view of these facts it seems evident that the financial sector is likely to be more affected by the emergence of new technologies than other sectors might be. Consequently, banks have internally been using information and communication technologies for a long time to process a large number of highly standardized operations. In the last few years, especially the core business of banks has been at the center of attention—and it has changed in several ways. The interface between the institution and its customers has become increasingly important. New ways of contacting and transacting have been implemented for mutual benefit and changed their relationship. Customers are now much more integrated in the transaction process and may easily arrange their affairs through the use of electronic commerce without having to be on site. Banks will be able to reengineer business processes, offer new products and reduce personnel costs.

Taken From: 10 Minute Guide to Conducting a Job Interview