Future Success Factors of Finance Portals - Dividing the Second Wave of Customers

Diplomarbeit , 2002 , 115 Seiten , Note: 1,3 (A)

BWL - Sonstiges

The title of this thesis might lead the cursory reader to the assumption that this is another one of countless academic works whose authors have overestimated the prospects of the Internet. However, this paper lays claim to be one of the early few that take a more rational approach to the subject by analyzing the realistic profit potential of online business models.
Furthermore, future success factors for finance portals will be discussed and their respective value proposition thoroughly examined. Since the fast moving Internet hype has had to give way to an almost equally swift consolidation of the market, this will prove to be crucial information for any company of the finance industry. Additionally, when taking into account that the oncoming ‘second wave of customers’ is to be divided amongst the remaining online players, the findings of this thesis will be of eminent relevance for any provider of a financial website.

Towards the end of my internship with AOL I was asked to research the required success factors for finance portals as a basis for AOL’s finance channel content strategy. Inexperienced Internet-users such as those of the Second Wave are likely to utilize the user-friendly and convenient service of AOL as an ISP. Therefore, it will be of vital importance for AOL to incorporate the above mentioned success factors within their service in order to increase the usage of its finance channel.

At this point I would like to thank AOL, not only for the financial, but especially for the professional support, which both have simplified my task to a substantial degree as well as all others who have been kind enough to let me benefit from their knowledge in the field.

Inhaltsverzeichnis (Table of Contents)

• Preface
• Executive Summary
• Chapter 1: The Second Wave of Customers
• The Rise of the Internet and e-Finance
• The Emerging Second Wave of Customers
• Characteristics of the Second Wave
• The Potential of the Second Wave for Finance Portals
• Chapter 2: Customer Satisfaction and its Relevance
• The Importance of Customer Satisfaction
• Current Customer Satisfaction Levels
• Challenges in Meeting Customer Expectations
• Improving Customer Satisfaction in the Second Wave
• Chapter 3: The Online Finance Value Chain
• The Evolution of the Online Finance Value Chain
• Traditional Value Chain versus Online Opportunities
• Identifying Untapped Value in the Online Finance Value Chain
• The Role of Personalized Advice and Financial Management
• Chapter 4: Future Success Factors for Finance Portals
• Moving Beyond Basic Prerequisites
• The Importance of Advanced Prompt Facilities
• Website Personalization and User Experience
• Evaluating Potential Killer Applications
• The Role of Mobile Financial Services
• Chapter 5: Profitable Business Models for Online Finance
• The Need for Sustainable Business Models
• Online Pure-Players, Multi-Channel Operators, and Coopetition
• Cost Considerations and Revenue Potentials
• The Advantages and Challenges of Coopetition

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This thesis investigates the future success factors of finance portals in the context of the 'Second Wave of Customers', who are increasingly adopting online financial services. The paper aims to analyze the profit potential of online business models in the finance industry, examining the changing landscape and identifying crucial factors for success. Key themes explored include:

• The emergence and characteristics of the 'Second Wave of Customers' and their impact on the finance portal market.
• The importance of customer satisfaction and the challenges faced by finance portals in meeting the expectations of the Second Wave.
• The evolving online finance value chain and the need for finance portals to expand their offerings beyond basic services.
• The identification of future success factors that will enable finance portals to effectively cater to the Second Wave and achieve sustainable profitability.
• An analysis of different business models for online financial services, including their costs, revenue potentials, and the advantages of coopetition.

Zusammenfassung der Kapitel (Chapter Summaries)

• **Chapter 1: The Second Wave of Customers**: This chapter introduces the concept of the 'Second Wave of Customers', who represent a new and significant target group for online financial services. It explores the characteristics of this group, highlighting their differing online experience and investment preferences compared to early adopters. The chapter concludes by discussing the potential of the Second Wave for finance portals, emphasizing the vast amounts of potential investments held by this demographic.
• **Chapter 2: Customer Satisfaction and its Relevance**: This chapter examines the importance of customer satisfaction in the online finance industry, considering current levels of satisfaction and the challenges faced by finance portals in meeting customer expectations. It highlights the critical need for finance portals to address existing shortcomings and improve their offerings to appeal to the demands of the Second Wave.
• **Chapter 3: The Online Finance Value Chain**: This chapter analyzes the evolution of the online finance value chain, comparing traditional models with the opportunities presented by the internet. It explores the potential of online platforms to provide personalized advice and individual financial management services, emphasizing the need for finance portals to expand their offerings beyond basic transactions and information dissemination.
• **Chapter 4: Future Success Factors for Finance Portals**: This chapter delves into the future success factors that will be crucial for finance portals to navigate the evolving landscape and effectively address the Second Wave. It examines the importance of advanced prompt facilities, website personalization, and the potential of killer applications like electronic bill payment and presentment and mobile financial services.
• **Chapter 5: Profitable Business Models for Online Finance**: This chapter examines the different business models available for online financial services, including online pure-players, multi-channel operators, and the growing trend of coopetition. It discusses the costs, revenue potentials, and advantages of each model, ultimately highlighting the importance of sustainable business models for long-term success in the online finance market.

Schlüsselwörter (Keywords)

This thesis focuses on the changing dynamics of the online finance industry, particularly the emergence of the 'Second Wave of Customers' and the future success factors for finance portals. Key terms and concepts explored include customer satisfaction, the online finance value chain, advanced prompt facilities, website personalization, mobile financial services, business models, online pure-players, multi-channel operators, and coopetition. The thesis provides valuable insights into the evolving landscape of the online finance market and the necessary strategies for success in addressing the demands of the Second Wave.

• Hochschule: Hochschule Reutlingen (ESB)
• Note: 1,3 (A)
• Autor: Axel Täubert (Autor:in)
• Erscheinungsjahr: 2002
• Seiten: 115
• Katalognummer: V4716
• ISBN (eBook): 9783638128827
• Sprache: Englisch
• Schlagworte: Finanzportal, Finance, Portal, Online, Internet, Success Factors, Erfolgsfaktoren