The Internet and the Commercial Banking Industry: Strategic Implications from a US Perspective

William C. Hunter
Additional contact information
William C. Hunter: Northwestern University

Chapter 3 in Financial Intermediation in the 21st Century, 2001, pp 17-28 from Palgrave Macmillan

Abstract: Abstract The banking industry provides an interesting and important case study of how changes in technology and regulation influence competitive structure, business strategy and industrial evolution. Indeed a narrow focus on traditional bank products and performance measures conditioned on the rapid pace of technological change confronting the industry would lead one to conclude that banking is essentially a declining industry. In fact, according to some observers the commercial bank — an institution that conducts the twin activities of accepting deposits payable on demand and originating loans — has outlived its usefulness. Such a focus, however, misses most of the true innovations that have taken place in the industry in recent years — most notably the move towards off-balance-sheet and information-based activities. A broader perspective shows banks evolving in ways that are enabling them to provide the same basic functions as before, but in new, more efficient ways.

Keywords: Technological Change; Switching Cost; Banking Industry; Mutual Fund; Regional Bank (search for similar items in EconPapers)
Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-29412-7_3

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230294127

DOI: 10.1057/9780230294127_3

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().