E-banking has overturned the existing technical knowledge related to network infrastructure, service offerings, and transaction and has lead to a radical overhaul of the way of doing business for the traditional banks. In facing the change, the incumbent banks need to undergo business transformation in order to exploit E-banking. To do this, banks have to change their conventional mindsets and reconfigure their capabilities around the needs of E-banking. It requires careful coordination with the development of core capabilities in order to successfully respond to the technological and business changes.
There are eight core capabilities for exploiting E-banking:
Technical dynamic capibilities
Planning new IT-infrastructure
Enhancing transaction security
Providing value-added content
Delivering differentiated services
Business dynamic capabilities
Envisioning value propositions
Managing customer relationships
Integrating physical and virtual channels
Positioning in an attractive site
These capabilities fall into two distinct groups that must be balanced. One group relates to the capabilities to utilize the emerging IT, while the second group is associated with the capabilities for the reconfiguration of the existing business model. Banks are able to properly exploit E-banking only if they renew their technical and business capabilities. There are two implications for the incumbent banks. On the one hand, banks need to develop uniquely innovative services and products through the secure technical platform and transactional process. On the other hand, they need to established innovative business model that changes the way banks operate and how they interact with their stakeholders. Thus, the eight core capabilities acts as a blueprint for sustaining a bank’s ability to exploit E-banking.
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