Research Paper on:
Pure Play Internet Banks; Can they Create Value?

Unformatted Sample Text from the Research Paper:
Banking 6 2.3 Pure Play Internet Banks 16 3. Methodology 24 3.1 Methodological Framework 24 3.2 The Use of Case Study 26 4. Results 28 5. Discussion 31 References 33 2. Literature Review To  consider the value of pure play internet banks, typified by banks such as First Direct and Egg in the UK, the role of banks and the internet need to be  considered. Internet banking has grown at a tremendous rate. In 1995 world wide only 1 financial institution had web banking, by 2002 this increased to 6,000 had this. In 1995  only 50 financial institutions had their own web sites, by 2002 this is 14,000 and in 1995 there were no credit card applications submitted over the web, but in 2002  1.5 million were submitted (Chaffey, 2004). The internet has been seen as a way of adding value, many banks with traditional bricks and mortar operations have seen this as a  way of supplementing business, with the potential to reduce costs as more customers undertake transactions remotely; requiring fewer physical resources. Value may be defined in many ways, thjis could be  the a higher level of profit per customer, or a higher profit level or better performance ratios. Equally value may be assessed in the way that the customers see the  bank, if they value the bank services more than other banks loyalty maybe increased and overall profit may be better as a result of more customers or the companies of  scope and scale rather than simply a higher initial profit margin. Higher degrees of loyalty may result in longer term profits if the customer relationship in leveraged. To consider  the way value may or may not be created the banks and the way value is created needs to be examined, with specific attention paid to the internet. The