Implications of e-commerce for banking and finance

Abstract

The aim of the paper is to show that e-commerce holds the potential to transform banking and financial systems. First, banks and financial firms can use the technology and business practice of e-commerce to market their products to the customers. Second, e-commerce provides a business opportunity for banks to offer new products and services to serve the needs of e-commerce. Third, the new business environment associated with ecommerce provides opportunity for institutional innovations in banking and finance, which can help to lay a sounder foundation for the international financial system. The paper focuses on the second and third aspects. © 2002 Kluwer Academic Publishers.