Redefining Financial Services: The New Renaissance in Value Propositions

289 Pages·2002·1.284 MB·English

by  Joseph A. DiVanna

Redefining Financial
Services
The new renaissance in value propositions
Joseph A. DiVanna
REDEFINING FINANCIAL SERVICES

R
EDEFINING
F
INANCIAL
S
ERVICES
The new renaissance in value propositions
Joseph A. DiVanna
© Joseph A.DiVanna 2002
All rights reserved.No reproduction,copy or transmission of this
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in accordance with the Copyright,Designs and Patents Act 1988.
First published 2002 by
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10 9 8 7 6 5 4 3 2 1
11 10 09 08 07 06 05 04 03 02
Editing and origination by Aardvark Editorial,Mendham,Suffolk
Printed and bound in Great Britain by
Creative Print & Design (Wales),Ebbw Vale
Tomy parents, who gave me the tools, to my wife Isabel,
who gave me a push, and to Glenn Mangurian, whose courage
to face insurmountable hurdles continues to amaze and inspire me

CONTENTS
List of Figures ix
Preface xi
Acknowledgements xv
Part I Introduction to Value Propositions 1
Part II The Future of Banking Services 9
1 Designing the Twenty-first-century Financial Institution for Value 15
2 The Future of Banking:E=mc3 24
3 Pervasive Computing:Really Getting to Know Your Toaster 37
4 Convergence and the Changing Landscape of Financial Services 48
5 eInsurance:Staking a Claim in the New World of Insurance 58
6 Capital Markets:Global Aspirations,Regional Values and Local Fears 64
7 Introducing eMarketplaces 69
8 Web Projects,Infrastructure and Value Propositions 76
9 Dot-com Lessons Learned:To Be or Not To Be,Value is the Question 84
Part III Global Viewpoints 93
10 Developing Trust,Brands and Services in African Banking 101
11 The Asian Advantage:A Modular Approach to Business Agility 106
12 Taiwanese Collaborative Product Commerce 110
13 Lifestyle Banking from Down Under 114
14 The European Synconomy 118
15 The Scandinavian Approach to mBanking 123
16 Eastern Europe Inc.Even Shakespeare said ‘What’s in a Name?’ 129
17 Developing a Twenty-first-century Middle Eastern Financial
Services Agenda 142
18 Diaspora Financial Services for Mobile Populations 148
19 Globalization:One Size Does Not Fit All 151
Part IV The Future of Payment Systems 157
20 An Evolution to the Exchange of Value 163
vii
Contents
viii
21 Anticipatory Technologies and Customer Centricity 168
22 Globalization,Social Adoption,International Regulation and
the Evolution to Bankruptcy 173
23 Privacy:Big Brother Meets the Marketing Mavens 179
24 Valagents:Digital Indentured Servants in the Age of eMoney 190
Part V eMarketplaces:The New Frontier for Services 197
25 Introducing New Financial Products and Services 199
26 How to Approach the eMarketplace Space 211
27 The Evolution of eMarketplaces 223
28 Opportunities for Financial Institutions in eMarketplaces 225
29 Creating a Value Proposition 229
30 Developing Centres of Competencies 233
31 Selecting the Right Partners and Managing Relationships 237
32 Moving into Action 240
Conclusion:Developing a Twenty-first-century Agenda 242
Notes 245
References 254
Index 256
LIST OF FIGURES
0.1 The four domains of knowledge 7
1.1 The focus of value 19
1.2 Operating models and organizational structure 21
1.3 A value network 23
2.1 Ford’s build-to-order process 30
2.2 The stability and volatility of technology 35
3.1 Technology maturity and social adoption curve 38
3.2 The interconnected microprocessor home of the future 41
8.1 DuPont ROI model 79
8.2 The ROP model 80
8.3 Internet bank ROP model 82
8.4 Process performance metrics 83
11.1 Ability to compete 107
15.1 Application of technology by market segment 126
16.1 The emerging market structure 130
16.2 eFinance Interchange Model 132
16.3 The spectrum of technology 134
16.4 The ASP-enabled bank in a box 137
25.1 Product categories 202
25.2 Click-and-mortar strategy 205
25.3 Product and interaction types 208
26.1 The market maturity curve 212
26.2 Value to segments and maturity 220
26.3 Technology adoption curve 221
28.1 An intermediary of services 226
29.1 The two sides of the value equation 229
ix