Corportate strategy, centralisation and outsourcing in banking: case studies on paper payment processing

This is an empirical review of IT outsourcing as an emerging tool for corporate strategy after deregulation and other phenomena changed the suitability of the global/universal bank model. Case studies of UK commercial banks are used to focus on cost management of paper and electronic processing through insourcing and outsourcing arrangements to change the size/efficiency equation in banking. The analysis discusses the corporate strategy and corr capabilities ussues behind a number of innovations and illustrates how outsourcing and other third party arrangements alters strategic balance albeit as a component of overall strategy. The paper establishes why outsourcing decisions have been concentrated in particular aspects of banking and discusses the competitive and environmental forces which have contributed to this focus.

STRATEGY, COMPETITION AND DIVERSIFICATION IN EUROPEAN AND MEXICAN BANKING

This article identifies whether top managers in banks’ parent companies are highly involved in the design of strategy and examines how management styles influence (or reflect influences) on diversification decisions within bank markets. Alongside this assessment, the research ranks the main concerns to design strategy in banking within an international setting (including the role of information and telecommunication technologies in the design and implementation of banks’ diversification strategies). Results emerging from triangulating responses suggested that, on balance, top managers in bank markets are predisposed to integrate around purely strategic rather than purely financial targets or than a combination of strategic and financial performance. Management of diversity does not seem to be time invariant with results suggesting that information technology management played a secondary role in the design of bank strategy but at the same time, information technology applications were perceived as an important force to modify competition in bank markets.Banks, competition, IT innovation

Corporate strategy for Mexican banks and market contestability

Bank corporate strategy can be considered as managers recognising available types of growth opportunities and then pursuing them. This approach considers that growth opportunities are external to banks and is the one adopted by most economic analysis. Based on this view the article reviews the most significant theoretical and empirical contributions in economic analysis to asses how changes in regulation-policy causes changes in the strategies of commercial banks. Policy-makers change banks' legal framework based on macroeconomic variables, trying to increase banks' technical efficiency. Successful regulation policy will create positive excess demand for the services of financial intermediaries. However, these decisions do not necesarily imply a unique stimulus for banks and, hence, the development of diverse strategic responses. The discussion claims those differences in technical efficiency result in unequal market shares. The analysis of Mexican banking in the early 1990s explains how the Theory of Contestable Markets is adequate to devise banks' corporate strategy.

Strategic response of commercial banks to regulatory change and IT Innovation

This article presents interview results which are part of a wider research programme into the control bank managers have of their banks' return generating resources (captured as core capabilities). In particular, changes in growth opportunities within bank markets emerging from regulatory change and IT innovations are explored through banks' geographic, product market, and customer group diversification strategies within three competitive environments (i.e. UK, Mexico and Spain). Research hypothesis were investigated through a total of 55, 1- hour, semi-structured interviews with managers of commercial banks, investment banks, management consulting firms and regulators from Mexico, Spain and the United Kingdom. Qualitative and quantitative analysis of this set of data suggested that domnestic competitors rather than foreign banks were perceived as the top driver for change of industrial boundaries. IT management played a secondary role in the design of bank strategy but at the same time, was perceived as an important force of change in bank markets. The great majority of banks reckined responding to changes in their growth opportunities through changes in their diversification moves and building upon a platform- based view of core capabilties. The article is divided in two parts. Part one presents a framework to analyse the relationship between core capabilities and diversification moves. Part two relates this framework to fieldwork in the form of semi-structured interviews.

Introduction to Trade Finance

Distance learning text to help carreer bankers. Individual text available upon request from corresponding author.

Management of Core Capabilities in Mexican and European Banks

This research considers the way in chinc banks have altered their strategies as regulatory change (ie deregulation) and information technology (IT) innovations created more opportunities for service delivery and extended the range of potential competitors and forms of competition. These external changes provided new diversification and growth opportunities but also modified prior expectations about the way managers defined and controlled their bank's core capabilities in pursuing current and potential business. The main research instrument used was a one hour, semi-structured interview; and in total 55 managers of commercial banks, investment banks, management consulting firns and regulators from Mexico, Spain, and the UK participated. Qualitative and quantitative analysis established that the great majority of banks responded to changes in growth opportunities through diversification moves but with no clear link to core capabilities. IT management played a secondary role in the design of bank strategy but at the same time, IT applications were perceived as an important force to modify competition in bank markets by supporting radical re-engineering of service delivery in ways that undermined previous advantagees of scale and scope.Banks, competition, IT innovation

Information technology innovations and commercial banking: A review and appraisal from an historical perspective

Technological innovation in general and information technology (IT) applications in particular, have had a major effect in banking and finance. Following Garbade and Silber (1978), this research reviews the effects on banking organisations with reference to front office or external changes as described by the nature of product and service offerings. Following Morris (1986) and Quintás (1991), the research also considers innovations in the back office or internal (operational function) changes brought about to banking organisations. Outstanding IT-based innovations are considered and grouped into four distinct periods: early adoption (1864-1945), specific application (1945-1965), emergence (1965-1980) and diffusion (1980-1995). The research then discusses the potential impact of more recent innovations (i.e. electronic purses, digital cash and Internet banking). As a result, the research provides an historical perspective on the main drivers determining adoption of technological innovation in retail banking markets.Banks, competition, IT innovation

Oil imports and the fall of the dollar

Petroleum industry and trade ; Money supply

The recent U.S. trade deficit - no cause for panic

International trade ; Balance of trade