Implications of e-commerce for banking and finance

Michael S.H. Heng
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Michael S.H. Heng: Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics

No 6, Serie Research Memoranda from VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics

Abstract: The aim of the paper is to show that e-commerce holds the potential to transform banking and financial systems. There are three aspects in which e-commerce can affect banking and finance. First, banks and financial firms can use the technology and business practice of e-commerce to market their products to the customers. Second, e-commerce provides a business opportunity for banks to offer new products and services to serve the needs of e-commerce. Third, the new business environment associated with e-commerce provides opportunity for institutional innovations in banking and finance, which can help to lay a sounder foundation for the international financial system. The paper focuses on the second and third aspects. The second and third aspects have a precedent in the history of banking. If history can serve as a reliable guide, then it is likely that e-commerce can act as an enabling factor to transform banking and finance in a radical manner

Keywords: e-commerce; banking; finance; Internet; innovation; history; modern commerce (search for similar items in EconPapers)
JEL-codes: G21 O33 (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:vua:wpaper:2001-6

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