Success in selling an investment for the perceived value of future income streams only passes the responsibility for success on higher level to the fortunate buyer. The point was made that since income consists of volume and margin, and since margins are hard to obtain given that competitors are a mouse click away, e-commerce success is determined by volume. And that this is best achieved by focusing on the global market. One may, however, try to compete with something other than products. Most customers need some degree of integration of their financial positions and transactions and many would welcome a service that also provides this on the Internet.
Portals obviously act as an Internet integrator.
The underlying assumptions are that this form of banking will be the dominating one in the future and that the franchise of a customer relationship bank can then be extended towards trustee functions and services . Financial Times Business Ltd. All rights reserved.