Uneasy banks must make a deposit on on-line future; if established firms don't succeed electronically, software giants may leap in
Article Abstract:
Banks face increasing competition from software companies in online banking and related financial services. The Internet's popularity has created a surge in home banking as an inexpensive alternative for customers. Many traditional banks, however, lack the technology to expand their menu of services. This development puts pressure on banks to keep their customers from defecting to several software competitors. Microsoft is positioning WebTVs and its Internet Explorer Web browser as cost-effective alternatives for online transactions. Banks will have to relinquish their current 'fortress mentality' by focusing on a new strategy, according to McKinsey & Co. One strategy centers on processing transactions, with specializing in financial products or services. Another plan calls for helping customers handle all their financial decisions, which could require banks to offer rivals' services. Other software participants include HP, HP's Verifone subsidiary and Electronic Data Systems.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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U.S. seeks data on Microsoft acquisition
Article Abstract:
The Justice Department has asked Microsoft to provide additional information about its proposed acquisition of WebTV Networks. The request came just days before the 30-day mandatory waiting period expired for clearance on beginning the acquisition. While the request will draw out the waiting period, Microsoft does not expect it to delay the completion of the $425 million deal, which was announced in Apr 1997. Microsoft claims it had anticipated the request would be made, when the agreement was signed with WebTV in Apr. The Justice Dept has asked for a list of WebTV's competitors and its plans had the acquisition not occurred. Several of Microsoft's competitors, such as Sun Microsystems, have supposedly tried to thwart the deal with WebTV.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
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