Contenu du sommaire : Les métiers financiers face à Internet

The drop in prices of telecommunication services The days of the « New Economy » seem quite far away. The telecom operators are facing a wide range of threats that could endanger their position and their revenue stream. The availability of resources is by far exceeding the needs of the market to the point that bandwidth could become virtually free. The local access loop is also facing tough competition since the deregulation of the sector and the end of monopolies. At last, new actors are hopping to take the role of intermediary held by the operators by capturing the customer's relationship and the added value from a range of applications. All these elements are pushing for a drop in prices of telecommunication services. In order to keep control on these prices, the operators will have to remain the sole identification source of the user, and become the unique billing body for a whole range of strategic applications. JEL classification : 033, L96

Information technologies' developments and banking strategies Last ten years, bankers had to reorganise their job integrating and developing new information technologies (IT). It will change the relationship between firms and customers by restoring the balance in favour of customers. The author describes the IT development and its impact on the customer/supplier relationship and on the market value creation. He first analyses the three most important development of IT, then describes the changes of IT between 1970 and 2000. At last, he analyses the IT actors' business models and concludes on banking IT strategies. JEL classification : G21, 033, L96

E-banking developments in the Nordic countries It may now be possible to present a more neutral assessment of the achievements and outlook for e-banking. This article focuses on developments in the Finnish and Nordic markets. Generally speaking, developments in the Nordic countries have been rapid and parallel, due to similar social structures, Internet penetration, payment infrastructures, and a number of common large banks operating in all the countries. What has made the Nordic countries - especially Finland - the leading e-banking countries ? Why are more than 2.6 million bank customers in Finland, ie more than half the population, using e-banking services ? JEL classification : G21, 033

Internet financial services in Japan Despite the burst of the bubble and the subsequent « lost decade », Japan's household financial assets still amount to 12,000 billion euros, with a high level of bancarization. Even the homeless living around Tokyo Station have a bank account, and maybe even a credit card. In this context, traditional banks, insurance and securities companies are now challenged by new entrants, and new ways of conducting business are becoming a means to retaining a shrinking client base, or gaining market shares. Nevertheless, the Japanese market for financial services remains different and the expected changes in household financial behaviour have not materialised until now. JEL classification : G2, 033

IT role in banking productivity The French retail banking sector displayed a sustained productivity growth of 5.5 % per year between 1994 and 2000 in which IT played an important role both directly through its use in back-office automation and in the development of remote distribution channels, and indirectly with the payment mix evolution towards electronic means and with the synergies issued from consolidation scale effects. However, the comparison with the United States and Germany, and the analysis of many initiatives from banks over the last few years, show that there is much advantages still to be taken of the use of IT including Internet : increased development of remote channels and improved integration in customer relationship management, continued evolution towards electronic payments, and productivity investments in the context of a more favorable age pyramid in the coming years. JEL classification : G2, 033

Information technologies and financial industrialisation IT can be used in the financial services industry because it is both based on a valuable information's analysis is and on a mostly dematerialised production. But, despite those charateristics, most of innovative experiences failed. Actually, IT revolution's impact must be estimated only on financial business and not on the financial system periphery. These changes speed up the industrialisation of the financial sector and therefore important financial firms' mergers occured. And if this IT revolution can generate efficiency, it also creates new risks for the financial system. JEL classification : G2, 033.

Is the on line banking self-sufficient ? The answer to this question in the French framework and after the Web financial bubble break-up is no. Moreover, the retail banking succeed in integrating those new technological channels and thus develop the famous «click and mortar» strategy. Is a bank without offices able to correspond to its shareholders' objectives and to its customers' needs ? Are branch offices essential for the distribution of financial services ? What will the evolution of banking ? This article try to answer these questions. JEL classification : G21, 033

Consumer credits on line IT play an important role on financial institutions, especially on credit institutions. They are considered to be the main factor that stimulates changes in this sector. This article deals with the Web role on consumer credit's distribution, the new risks and challenges that this distribution channel implies. The author analyses the organisation changes in the firm implied by IT. He concludes on challenges for the future. JEL classification : G21, 033

Banking role in the electronic inter-company exchanges This question implies the change of the banking role as financing supplier or as provision of services in the firm development. This article presents how banking firms first modernised traditional business with IT. It analyses how use of credit card was a significant change of banking role in electronic inter-company exchanges and how banks develop new electronic interventions. JEL classification : G21, 033

Internet financial payments and transactions Over 30 % of Internet users in Europe buy today on the network. This impressive success relies on the development of confidence and the availability of well-adapted solutions. The security of transactions, and the guaranty of due completion are supporting this confidence, while ease of use and universality of payment schemes are the necessary steps toward their broad acceptance. On the payment scene, the bank card is still the trusted solution, even though it is not really suited for distant payment due to the lack of signature. On the other hand, many intermediaries are trying to catch a slice of the customer's relation by offering virtual wallet server and accounts that enable to sign the transaction and make P-to-P payments. Among those are W-HA at Wanadoo or Paypal at eBay. The mobile phone is itself a serious candidate to become the payment terminal of the future. JEL classification : G2, 033

On line payments' security Electronics trade developed successfully although on line payments' security is an important problem. Most of projects and initiatives of on line payments have failed. This article tries to explain these paradox. It deals with specific features of on line payments' security compared with « standard » systems. The author tries to understand the functioning of on line payments' systems and their low success rate. He analyses consumers and operators' behaviours vis-à-vis the economics of security, especially the consumers' reluctance to pay the cost. At last, he presents challenges that security lays to operators and regulators. JEL classification : G2, K39, 033

Legal payments' security This article deals with the legal notion of « payment security ». First, the author reminds us that this notion emerged from international trade exchanges. She then analyses the legal framework of the payment security. The author suggests a simple definition including issues concerning trans-national or on line payments. So it is « a guarantee provided for a financial exchange whatever its purposes or its compensations are », that is to say whatever its initiator, its payee or its use are. JEL classification : G2, K39

Paris, a European financial E-centre Paris Europlace co-ordinates a working group to expand the activities of Paris as a European financial E-centre. This article presents the main conclusions of this action plan. It deals with the recent technologic changes, the actors of e-finance and the initiatives to develop. Classification JEL : G15, 033

The impact of the Internet on financial intermediation : outlook for investment services regulation The French Financial Market Regulator, the Conseil des marchés financiers concluded that online broking did not require a radically new approach in terms of regulatory requirements. The CMF believed it is just necessary to spell out the special « conduct of business rules » needed to take account of this particular way of conducting a relationship between financial intermediaries and their clients. Such was the aim of the regulations adopted in France. Going forward, it is likely that the Internet will be used not only for transmitting investors' orders but also for matching bids and offers. The revision of the Investment Services Directive will probably encourage the development of so-called multilateral trading facilities (MTFs). On an MTF, orders will be directly matched and executed, without having to be sent to a regulated market. This new development will doubtless oblige regulators to lay down new rules. JEL classification : G28, 033

The Prudential consequences of on-line banking and financial activities The rapid development of banking and financial services on the Internet has created opportunities for financial institutions and for their customers, but also uncertainties. The Banque de France and the Commission bancaire (French regulators) presented in December 2000 banking and finance professionals, a set of best practices (gathered in a manual called « Livre blanc ») for internal control, the fight against money laundering, and security, intended for use by the banking professionals and by new entrants. This « Livre blanc » also contains proposals to further enhance the security of banking and financial transactions over the Internet, including the definition of a security benchmark within the French Banking Organisation and Standardisation Committee. It proposes solutions to the prudential problems arising from the cross-border nature of on-line activity. JEL classification : G28, 033, K22

The convergence of European fiscal policy : where do we stand ? The Maastricht criteria reinforced by the Stability and Growth Pact were notably set up in order to favour the convergence of European fiscal policies. They nevertheless do not constitute a sufficient condition insofar as they concern a particular way of defining public deficits. On top, the question of convergence of public expenditures has not been raised. Thus, the aim of this paper is to put forward the different elements that could favour or conversely slow down the convergence process. Fiscal constraints constitute indeed an important point but the role played by fiscal competition is also to be considered. On the other hand, the persistence of asymmetric shocks as well as the heterogeneities in the monetary transmission channels should not contribute to the convergence of fiscal policies. JEL classification : E62, H3

Changes in Spanish banking During the 90's, Spanish banking system experienced mergers, and thus, this sector is now composed of few actors. The impenetrable character of the Spanish market has allowed actors to maintain high returns. This article presents the principal characteristics of the Spanish banking industry and its recent changes. The author exposes economic forecasting analysing changes in the actors' strategies and this sector organisation. JEL classification : G21, G34