Your home computer will soon be your banker and broker
Article Abstract:
Intuit Inc's recent press conference detailing its alliance with 19 large banking and financial services firms to provide online banking and brokerage services via its Quicken personal finance software marks a significant and fundamental change in the role of financial transactions in consumers' lives. Intuit's strategy is to use its Quicken software to provide online financial services without the need for traditional retail banking or brokerage services. With the huge increase in personal computer sales, which increased by 85% since 1990, online banking promises to be a major force in the banking industry. Also, electronic banking has already been accepted by US society. Direct deposits rose by 50% since 1990, automated clearinghouse payments rose by 63% during that period, and ATM transactions doubled. The banking industry has been hurt by restrictive regulation that prohibit banks from entering the insurance and securities markets, but current market forces and technological innovation are making these restrictions irrelevant.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
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Blame retailers for Web's slow start as a mall
Article Abstract:
Retailers complain that technical problems are responsible for the low volume of retail trade conducted on the World Wide Web, but they share the blame because they refuse to offer a wide range of products and discounts. Retailers site technical problems, such as the lack of security, slow transmissions and inadequate computers, for the lack of retail business conducted on the Web, but these problems will be solved by 1998. Retailers do not understand that they have to sell products on the Web in a different manor. First, retailers do not know how to create interesting Web sites to promote their wares. Second, they refuse to offer discounts for Web users, although they save as much as 50% on their costs. A survey of Web users found that 49% of 1,013 people said that they would not pay extra for services such as fast shipping. Internet Shopping Network offers discounts between 10% to 20% on 27,000 computer products, which has helped it generate over $500,000 a month in sales.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
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On-line banking has bankers fretting PCs may replace branches; although danger is far off, Microsoft and Intuit are still an aggressive threat; insecure about the Internet
Article Abstract:
The customer side of the banking industry faces a serious threat from software developers such as Microsoft and Intuit who are preparing to introduce powerful home-banking software and services for the PC. Microsoft and Intuit are both introducing new versions of their Microsoft Money and Quicken personal finance applications with enhanced home-banking features. The new features will include sophisticated online services that will allow customers to pay bills, find mortgages or credit cards, buy securities or transfer funds from the home PC. Many analysts contend that 1995 is the first year of a war between banking institutions and home-banking software developers. The stakes for banks are enormous. If they lose control of the customer side of banking, they risk becoming irrelevant in the financial services market. Many large banks have formed alliances with software developers such as Microsoft, Intuit or Visa International to guarantee that they are not left behind.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
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Comment about this article or add new information about this topic:
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