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IS 356IT for Financial Services
Banking and Financial Portals (Account Aggregation and
CRM)
April 20, 2023
http://www.evergreen.loyola.edu/~pptallon/is356.htm
April 20, 2023© Paul Tallon 2/16
April 20, 2023© Paul Tallon 3/16
Portals
Enduring and profitable Customer Relationships
Financial Portal Strategy
Aggregated content from a variety of external providers
Creation of a central point on the web where consumers can handle all of their financial affairs
Types of PortalsTypes of Portals
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Financial PortalsFinancial Portals One-stop financial management solution General notion of online banking with the addition of
non-banking services including brokerage, insurance, bill payment, investments, etc…
1-to-1 relationships with customers leading to better understanding of customer requirements and identification of leverage opportunities
– price, convenience and value-added services– drive new business (customer retention vs. acquisition)– increase cross sales to existing customers– increase service quality (increase switching costs)– reduce service costs (reduce transaction costs)
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Aggregation Service
Bank A
Login &Password
from Internet
Bank B
Account info
Aggregatorlogs in
masqueradingas customer
AggregatedView of
Accounts
How Aggregation WorksHow Aggregation Works
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Yodlee Yodlee (My Financial Portal)(My Financial Portal)
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PROBLEM! Messages are scraped in HTML only This describes data appearance but not the meaning of
the data So… the aggregator must know exactly where on the
external website the account balance is situated Anytime there is a change in the layout or design of the
website, the aggregation must adjust their scraping algorithm which needless adds cost and complexity to their business model
Screen ScrapingScreen Scraping
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Financial Supermarket Financial Supermarket ModelModel
Laudon & Traver, Ecommerce, p. 594,
Table 11.7
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Non-Financial InstitutionsNon-Financial Institutions Projected boom in online investment and banking has also
attracted non-financial institutions Financial portals provide comparison shopping services and
steer consumers to online providers for independent financial advice and financial planning
Generate revenue from advertising, referral fees, and subscription fees
Financial portals add to online price competition Thwart the ambitions of the large banks that would like to lock
consumers into a single branded financial supermarket in which switching costs from a single, all purpose account would be considerable
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ING café
Wainwright Bank
Laurentian Bank (Can)
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The Future of BankingThe Future of Banking
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For Next Class…For Next Class… Shinsei case study
One page summary due next class
Third blog is due Nov. 11 In class exam on Nov. 25 (covers brokerage and banking industries)
