The rise of customer-oriented banking - electronic markets are paving the way for change in the financial industry

The banking industry has been a pioneer in adopting electronic markets with exchanges, clearinghouses, and multilateral trading facilities having become the backbone of today??s globally integrated financial transactions. While most banks use the services of these electronic markets to handle interbank processes, they still strive for bilateral relations in the field of customer-facing processes. This position paper argues that the financial crises, the changing behavior of customers, upcoming innovations based on information technology (IT) and financial services offered by non-banks are strong drivers towards more customer-orientation in the financial industry. A large variety of banking IT innovations has emerged and illustrates that traditional banks are expected to have less power to impede competition at the customer interface and in consequence need to re-position themselves. Building on these developments on the one hand and existing electronic market infrastructures in the banking industry on the other, the concept of a customer-oriented financial market infrastructure is proposed as a possible future solution. The impact is illustrated using a competitive analysis of the banking industry and analogies to the media industry where new entrants from the computing industry have caused disruptive changes. Besides describing the threat to existing banks, the position paper also discusses the perspectives for banks.     

Adoption and effectiveness of electronic banking in Kenya

A global explosion in the use of electronic commerce has been witnessed in recent times with the monetary value of products and services exchanged electronically being estimated at above US$ 7 trillion in the year 2004. Research has followed the same pattern especially in investigating factors influencing the adoption and effectiveness of e-commerce in retail businesses. However, little has been done to establish these factors in electronic banking (e-banking) in developing countries. The aim of this research was to investigate the factors influencing the adoption and effectiveness of e-banking in retail banking. Initial and follow-up surveys were carried out in the years 2005 and 2009, respectively, which involved banks controlling approximately 90% of formal retail banking in Kenya. The follow-up survey was meant to monitor trends between the periods of the two surveys. Results varied across the period.     

Computer-Mediated Communication and The Public Sphere: A Critical Analysis

While a strategic imperative for financial institutions, major differences currently exist among banks' abilities to convert their customers to using the Internet. In addition, not a lot is known as to what drives those differences, although one can easily hypothesize that on-line banking adoption must be due to a combination of demand ("pull") and firm ("push") factors. This paper presents a statistical appraisal of the determinants of on-line customer penetration for a cross-sectional sample of the major incumbent banks in Western Europe for the combination of the years 1988 to 2000. "Pull" factors play a large role in explaining customer conversion to Internet banking, yet bank-specific factors (or "push" factors) are not marginal. Among others, banks with traditionally high cost-effectiveness and that already offer wide private ATM coverage for their customers are also the ones which have already started to migrate a larger proportion of their customer base on-line. Interestingly, among all "push" factors analyzed, cost-effectiveness emerges as the largest leverage effect on customer conversion. Finally, a cluster analysis supplements the regression results along the axes of "pull" and "push", and identifies a set of early movers and laggards among the banks in our sample. Generally speaking, those first-movers already exhibit stronger off-line profitability than laggards, which may indicate that the on-line marketplace may reproduce performance off-line (i.e., currently successful banks have nothing to fear from aggressive start-ups).     

Taming the Wild Euro: A Technology Review of the Future

The next ten years will bring major change to the world of banking, securities trading and finance. Influenced by the key converging factors of the Internet, the euro, the Y2K Problem, same-day-settlement, and electronic trading networks, the future will find us in a world with one-third fewer banks and one-third fewer stock exchanges. The vast majority of trades in listed securities will occur on private networks. Y2K will force the failure and consolidation of as many as 20% of small to medium size financial services companies, including small brokers, money managers, hedge funds and investment advisors. Foreign exchange revenues will dry up for banks trading in Euroland, and an onslaught of competitors will arrive there from our side of the Atlantic.     

A Hierarchical Location Model for Locating Bank Branches in a Competitive Environment

Recent developments in the provision of banking services are expected to affect the structure and the organization of modern banks significantly. Consequently, it has become necessary for most banks to reorganize their service network. In this context we demonstrate how demand–covering models may be combined with geographical information systems (GIS) to determine the optimal location of bank branches, taking into account the various factors that characterize local conditions within the demand area. The essence of the proposed models is to employ a GIS to represent various criteria concerning the demand for banking services (geographical, social, economic, etc.) as well as the competition in each particular area. This information is then taken into account by appropriate demand–covering models which determine the locations that achieve the maximum capture of the demand. Finally, we present some initial results concerning the application of this approach by a major Greek commercial bank.     

International comparison of bubbles and bubble indicators

The purpose of this paper is to analyze the financial turmoil of the US subprime loan crisis of mid-Noughties and to compare it with the Japanese asset bubble of late 1980s. While examining the two crises, it compares the monetary policies of both countries, focusing on the excess liquidity and expansion of bank loans that were seen. This paper develops several bubble indicators, including the ratio of real estate loans to total loans, the loan-to-GDP ratio, and housing affordability. In order to develop these indicators, it is necessary to compare banking behavior in both Japan and the United States, as banks in both countries were making loans beyond the point of profit maximization. Property prices and monetary policy in both countries influenced banking behavior significantly. The bubble indicators developed in this paper can be used as early warning indicators for future bubbles.     

基于IBM z/OS的银行信用卡系统的解决方案

近年来,大型金融企业制定IT发展核心战略,实现业务数据集中处理,保证数据大集中系统稳健运行。本文给出了详细的银行、金融机构信用卡系统解决方案,依托IBM大型机建立高效、灵活并实时响应的技术平台,为广大用户群体提供强有力的业务支持。     

E-banking: challenges and opportunities in the Greek banking sector

Internet technologies have a great potential for changing fundamentally the banks and the banking industry. The opportunities, which the e-banking services and technologies offer to the banking sector in order to fulfil existing customer needs and to attract new prospective customers, are the driving forces for banks in order to design, develop and operate their own e-banking systems. This paper examines the challenges and opportunities of e-banking for the Greek banking sector, during the e-commerce era, and also presents the results of a survey of banking executives working at banks offering e-banking services. The main findings demonstrate that banks expand to e-banking services in order to remain competitive, to keep track with technological developments and to benefit from the lower cost of e-banking transactions. The major problems they face are the low response rate from customers and the implementation of security and data protection mechanisms. The relatively low Internet usage, the non-familiarity with technologically advanced devices and problems regarding security and privacy are the main factors that have a negative influence on the adoption of e-banking services by customers in Greece.     

Internet banking: The digital voyage of banking and money in cyberspace

Extensive globalizing processes and technological innovation have transformed cyberbanking from a sci‐fi dream to a demanding reality unfolding in the infinite geography of cyberspace. After approaching Internet banking as the most revolutionary stage of the evolutionary process of banking so far, this paper will try first to identify both its positive and negative implications. Second, it will detect the technical vulnerabilities of the Internet banking system and suggest security measures and controls which could contribute substantially to the creation of a secure operational environment where banking activities and the issuance of electronic money would safely take place. A large part of the paper will deal specifically with legal issues focusing mainly on privacy and crime in cyberbanking, consumer protection concerns and the examination of the contractual relationship between banks and their consumers in cyberspace. The last part of the paper will analyse the implications of Internet banking for central banks which are called to reconsider their monetary and supervisory policies and reform the regulatory framework within which cyberbanking will evolve. It is in this context that, finally, the paper will attempt to answer the crucial question of whether and how Internet banking should be regulated.     

电子商务与银行业

电子商务是二十一世纪信息产业新的增长点,也是二十一世纪银行业发展的方向。随着国际部分加剧和银行创新发展内在需求的扩大,加快电子商务进程已是我国银行寻求发展的战略性选择。鉴于此,本文在介绍电子商务运作、特点的基础上,分析电子商务给银行业带来的影响和机遇,并就我国银行电子商务发展的现状及途径加以探讨。     

Slacks-based efficiency measures for predicting bank performance

Data envelopment analysis (DEA) is a non-parametric method in which multiple inputs and outputs are possibly useful measuring the accomplishments in banking industry. However, due to a time lag, the evaluation results usually arrive too late for the evaluated banking institutions to react timely. This paper employs slacks-based efficiency measures, i.e., considering the slacks in input and output factors, to measure the performances of 24 commercial banks in Taiwan. Based on their financial forecasts, we calculate the efficiencies of the commercial banks beforehand. We found that the efficiency scores calculated from the data contained in the financial statements published afterwards are not significant from the efficiency scores that calculated from the financial forecasts. The results also show that this study precisely predicts the bad performances of the bank in advance.     

Factors influencing the adoption of internet banking: An integration of TAM and TPB with perceived risk and perceived benefit

Online banking (Internet banking) has emerged as one of the most profitable e-commerce applications over the last decade. Although several prior research projects have focused on the factors that impact on the adoption of information technology or Internet, there is limited empirical work which simultaneously captures the success factors (positive factors) and resistance factors (negative factors) that help customers to adopt online banking. This paper explores and integrates the various advantages of online banking to form a positive factor named perceived benefit. In addition, drawing from perceived risk theory, five specific risk facets – financial, security/privacy, performance, social and time risk – are synthesized with perceived benefit as well as integrated with the technology acceptance model (TAM) and theory of planned behavior (TPB) model to propose a theoretical model to explain customers’ intention to use online banking. The results indicated that the intention to use online banking is adversely affected mainly by the security/privacy risk, as well as financial risk and is positively affected mainly by perceived benefit, attitude and perceived usefulness. The implications of integrating perceived benefit and perceived risk into the proposed online banking adoption model are discussed.     

New Applications & Recent Research

A Nebraska network of 97 banks with 350 on-line terminals is providing around-the-clock banking through a customer-operated point-of-sale service and automated teller machines. The operation relies on a configuration of three Tandem computers to perform on-line financial transactions and two Burroughs systems to handle non-financial business activities.     

Bagging ensemble models for bank profitability: An emprical research on Turkish development and investment banks

The purpose of this study is to find the determinants of the profits for the Development and Investment Banks (IaDB) in Turkey. In Turkish Banking System, the main financial source of the banks is the deposits, which constitute almost%60 of the balance sheet. As being a sub-group of the banking system, IaDB are not allowed to accept deposits in Turkey, which changes the total structure of the profitability compared to other banks. Till today, none of the relevant research was concentrated on the profit structure of the IaDB neither in Turkey nor in any other countries. Such research would fill that unexpectedly disregarded yet highly important gap.Therefore, to address this gap, quarterly financial data (10 balance sheet ratios) of 13 banks in the period of 2002Q4-2014Q3 were utilized. As a profit measurement among all other available measures, Return on Equity was chosen as dependent variable as it was the most used one as well as many other researcher have preferred as well. This study investigates the potential usage of bagging (Bag), which is one of the most popular ensemble learning methods, in building ensemble models, is used to predict the determinants of Turkish IaDB profitability. Three well-known tree-based machine learning (ML) models (i.e., Decision Stump (DStump), Random Tree (RTree), Reduced Error Pruning Tree (REPTree)) are deployed as base learner. This empirical study indicates that bagging ensemble models (i.e., Bag-DStump, Bag-RTree, Bag-MLP and Bag-REPTree) are superior to their base learners and could improve the prediction accuracy of individual ML models (i.e., DStump, RTree, REPTree).     

Online banking performance evaluation using data envelopment analysis and principal component analysis

This paper presents a hybrid approach to conducting performance measurements for Internet banking by using data envelopment analysis (DEA) and principal components analysis (PCA). For each bank, DEA is applied to compute an aggregated efficiency score based on outputs, such as web metrics and revenue; and inputs, such as equipment, operation cost and employees. The 45 combinations of DEA efficiencies of the studied banks are calculated, and used as a ranking mechanism. PCA is used to apply relative efficiencies among the banks, and to classify them into different groups in terms of operational orientations, i.e., Internet banking and cost efficiency focused orientations. Identification of operational fitness and business orientation of each firm, in this way, will yield insights into understanding the weaknesses and strengths of banks, which are considering moving into Internet banking.     

The role of dimensions of perceived risk in adoption of corporate internet banking by customers in Iran

During the recent years, one of the issues considered by the banks in the field of internet banking is the adoption of corporate internet banking (CIB) by corporate clients. The present article tried to examine the factors affecting adoption of CIB by corporate clients based on the perceived risk theory. The research hypotheses were tested using confirmatory factor analysis and the results showed that there was a significant relationship between all the risks and intent to adopt CIB by the corporate clients of the banks. The major factors decreasing the intent to adopt internet banking include performance, privacy, security, financial, time, and social risks respectively. Based on the findings of the present study and similar studies, a comparison was made between the importance of the dimensions of perceived risk in personal and CIB and suggestions were made for decreasing the effects of these significant risks for the corporate clients to adopt CIB.     

基于CatBoost用信预测模型的TreeSHAP解释性研究

银行客户申请信用贷款在授信通过后,精准预测客户是否用信及分析影响客户用信的关键因素,对提高银行客户服务能力及盈利能力具有重要意义.目前,机器学习算法鲜有在用信预测方面的应用,且金融用信领域缺乏模型可解释性的研究,为此提出一种基于CatBoost的TreeSHAP解释性用信预测模型.通过CatBoost构建用信预测模型,利用3种超参数优化算法对该模型进行对比优化,与基线模型在4项主要性能指标上进行实验对比,结果表明经TPE算法优化后的模型性能均优于其他模型,然后结合TreeSHAP方法从全局和局部的层面增强模型的可解释性,解释性分析客户用信的影响因素,为银行对客户进行精准化营销提供决策依据.     

Is grey relational analysis superior to the conventional techniques in predicting financial crisis?

This study proposes a new approach for analyzing the credit risks of banking industry based on the modeling of grey relational analysis (GRA). In order to construct a financial crisis warning system for banking industry, a GRA approach is developed and applied to the real data set with 111 samples. The results of the current model are compared to those of traditional ones, logistic regression and back-propagation neural network. The results illustrate that in the prediction of financially crisis as well as financially sound banks, the proposed GRA model demonstrates better prediction accuracy than the conventional ones. The results also imply that the financial data set one year before the crisis leads to the best accuracy. It is helpful for the establishment of early warning models of financial crisis for banks. The current results show that the proposed GRA provides a novel approach in handling financial crisis warning tasks.     

商业银行如何有效保障网上银行的信息安全

随着互联网技术的发展,金融信息化程度越来越高,网上银行这种高效快捷的金融服务也得到了快速发展。由于互联网的不安全性,网上银行容易受到不法分子的攻击,严重威胁了用户的个人隐私和资金安全。近年来,针对网上银行的安全事件一直持续不断。本文针对这种情况,对商业银行如何有效保障网上银行的信息安全提出了一些建议。     

数据仓库在商业银行中的运用

随着信息系统在社会各企业中的广泛运用,特别是在银行业,信息系统数年中收集了海量数据,且数据还正以指数级增长,在这信息化的大潮中,银行高层都希望用数据分析来了解银行的经营状况和外部环境,做出科学的决策,在现代激烈的银行业竞争中占有一席之地。本文主要对数据仓库环境的组成、维度建模做一个简要的介绍,结合银行的特定业务,对相应的业务需求介绍银行信用卡数据仓库的基本构架,同时简要论述银行信用卡数据仓库对银行信用卡业务的巨大作用。通过一个基于银行数据仓库项目的完整流程,具体地描述了数据采集,数据转换和数据加载的具体实现方法。对一个具体的业务需求的分析,设计相应的维度模型,最终完成一个客户等级MIS,并输出相应的日报表。最后简要介绍数据仓库的深层应用。