Economic aspects of electronic commerce in financial services and advantageous steps to extended offers in Internet banking

In this paper we report on the results of two projects our research group is presently conducting. We start our with sketching preliminary results of a long-term government project geared to reveal efficiency conditions for successful electronic commerce particularly in the financial services field. We address questions relating to the innovative use of new channels for distributing financial services focusing on Internet banking. Our government research funds are devoted to help German financial services firms on their way into the digital economy and particularly to advise German banks in applying Internet technology in novel ways to new and promising applications. Thus, along with the research sketched above, we are engaged in a joint project with an innovative German bank, the Munich-based Advance Bank. This direct banking firm is currently extending its telephone banking technology simultaneously employing Internet communication for consultation-intensive customer processes such as mortgage loans (intelligently combined with other financial products). Based on our joint project, we present a brief case study of the bank´s market and technology strategy and identify some problems encountered when employing Internet technology to open new markets successfully