Bancassurance in Britain and France: innovating strategies in the financial services (original) (raw)

Bricks versus Clicks: The changing nature of banking in the 21st century

Journal of Banking & Finance, 2007

Despite his untimely death, Lawrence (Larry) Goldberg was a prolific author who published widely in the JBF, as well as in other academic journals. He had a wide-ranging intellect that led him to contribute articles in all areas of financial institutions, from banking, securities, insurance, pensions to small business and healthcare. In this special issue dedicated to his memory, we have tried to continue his legacy by choosing high quality papers that contribute to the body of his work. The ten papers in this issue contribute to several broad research areas out of the many topics that Larry has pursued and published. One of Larry's earliest areas of interest was the topic of mergers and acquisitions, on which he wrote his doctoral dissertation under the guidance of George Stigler at the University of Chicago. He was interested in the economic impact of mergers in terms of the competitiveness of the banking market. In Goldberg (1976), he challenges the then-conventional wisdom that acquisitions always increase market share. Moreover, Goldberg and Grosse (1994) examine the role of foreign bank expansion into the US. In this special issue, Natasha Burns, Bill Francis and Hasan Iftekhar contribute to Larry's work by challenging conventional wisdom with regard to the incentives for foreign acquisitions of US targets. They demonstrate the limitations to reputational bonding that have been advanced as explanations for these acquisitions, in that they find that the foreign acquirer cannot fully expropriate the gains associated with US governance and legal protective mechanisms. Berger et al. (2004) examine the role of mergers and acquisitions in inducing market entry. Goldberg and White (1998) pioneered the examination of de novo banking and the impact on the entry of new banks on the market structure of the banking industry. The papers in this special issue describe virtual market entry via Internet banking activities. Bob DeYoung, Bill Lang and Daniel Nolle find evidence of increases in bank profitability from Internet banking franchises via increased revenues from deposit services charges. Consistent with this finding of elasticity in deposit demand, Tim Hannan examines a natural experiment and finds significant competitive effects associated with changes in ATM fees and surcharges. Examining a unique database comprised of Spanish banks, Ignacio Hernandez and Maria Nieto find that the introduction of Internet banking capabilities lowers costs and improves bank profitability.

The Effects of Bancassurance: Reviews from The Perspectives of Banks, Insurers, and Customers

International Journal of Academic Research in Business and Social Sciences, 2021

This conceptual paper examines bancassurance from the perspectives of banks, insurers, and customers. In general, bancassurance refers to the collaboration between banks and insurers to distribute insurance products to bank customers. In Malaysia, bancassurance significantly contributes to the growth of the Malaysia market. As the nature of the banking atmosphere grows more competitive, the role of bancassurance develops more meaningfully in this industry. In the context of this concern, this study seeks to discuss the concept of bancassurance and its benefits to the banking sector, insurance industry, and customers. This study would be useful to insurance companies and banking institutions to formulate strategies for sustainability of bancassurance in the industry.

Bank Diversification : Laws and Fallacies of Large Numbers

Working paper (Federal Reserve Bank of Cleveland), 1994

Even small banks may diversify, however, by selling loans or participating in mortgage pools or other forms of securitization. Appendix: Public and Nonpublic Occupational Groupings Miscellaneous Services Industry Public Hotels and motels Lodging places, except hotels and motels Laundry, cleaning, and garment services Beauty shops Barber shops Funeral services and crematories Nonpublic Advertising Services to dwellings and other buildings Personnel supply services Computer and data processing services Detective and protective services Business services Automotive rental and leasing, without drivers Automobile parking and car washes Automotive repair and related services Electrical repair shops Miscellaneous repair services Theaters and motion pictures Video tape rental Bowling centers Miscellaneous entertainment and recreation services

The role of banks

1992

Rapidly changing technology, financial innovation, and increased linkages among the world’s financial markets pose many challenges for commercial banks, other financial firms and markets, and their public regulators. History suggests, however, that while the challenges we face today may be unique, many are not fundamentally dissimilar from the problems others have faced in the past. For example, regulators now confront the issue of whether and, if so, how to regulate the issuance of private electronic money. In the nineteenth century, the private issuance of banknotes raised a similar regulatory question. A second example is the current problem, for banks, of increased competition from nonbank financial firms and markets that is associated with regulatory and technological change. As Eugene White points out in the first article in this Review, banks faced a similar challenge in the nineteenth century. The twenty-second annual economic policy conference of the Federal Reserve Bank of...

The restructuring of the UK financial services industry in the 1990s: a reversal of fortune?

Journal of Rural Studies, 1993

Whereas for much of the 1980s the financial services industry was characterised by growth and expansion, the late 1980s and early 1990s was a period of redundancies and financial losses. This paper seeks to explain this reversal of fortune and the responses of the financial services industry. The restructuring of the financial system at a global level, through a process of disintermediation, and at a national level, in response to financial re-regulation, led to an intensification of competition between financiai institutions and helped produce a developed countries debt crisis, founded in personal and corporate indebtedness. In the wake of this crisis, the financial services industry has been in transition. Bureaucratic labour market models have been overturned in favour of more flexible variants, while at the same time many financial services firms have engaged in the wholesale spatial reor~anisation of their activities. One important consequence has been a process of 'financial infrastructure withdrawal', by which services and operations are withdrawn from certain social groups and certain localities. This process, which revolves around a rubric of risk reduction and a 'flight to quality', has introduced an element of exclusion and closure to the operation of financial systems within developed countries. In this sense, the reaction of the financial services industry to the developed countries debt crisis mirrors that which followed the less developed countries debt crisis of the early 1980s; that is, abandonment and retreat to a more affluent client base. As was the case during the less developed countries debt crisis, the current process of financial infrastructure withdrawal has serious social and economic implications for those social groups and localities abandoned by the financial community.

UNIVERSALITY OF MODERN BANKING SERVICES

Gakpo M. D. Y, 2013

This paper assesses whether or not the services provided by investment and commercial banks should be separated. The study examined the main types of banks and banking services on offer with particular reference to the key features of commercial, investment and modern banking services. Modern banking service delivery is increasingly blurring the distinctions between specialist banking (particular areas of banking), and universal banking (general banking service focused on meeting the increasingly complex and diverse needs of clients). Discussions of the study revealed the high level of deregulation of the banking industry across the globe leading to universality rather than specialist banking as sanctioned by the Glass Steagall Act of 1933. Universality of modern banking has given both commercial and investment banks the opportunity to cross-sell a plethora of banking product and services to meet customer needs and also to generate more fees and commission income. The study therefore concluded that the Glass Steagall Act provided blanket protection against potential abuses of securities affiliates of commercial banks by separating commercial and investment banking services. As the threat of financial abuses diminishes as a result of strong and healthy regulatory framework, Glass Steagall appears to be more of an obstacle to economic efficiency and no longer relevant for the current banking environment.