As the ninth biggest bank holding organization in the United States in 2000, FleetBoston Financial Corp. given a horde of monetary administrations, including retail keeping money, credit beginning, and investment funds. This case investigates how FleetBoston reacted to the Internet and the ascent of new rivalry from both inside and outside the managing an account industry. Most of the case familiarizes students with how clients connect with budgetary administrations, how these organizations profit, and what are their difficulties and opportunities. The dominant part of retail managing an account clients are unfruitful, making for an extraordinary working environment in which advancements are reliably gone for diminishing expenses. Since client conduct contributes specifically to expenses, advancements fixate on giving lower expense channels to client exchanges. Sadly, each new channel builds general expenses, and banks are still confronted with lessening expenses. Furthermore, the Internet has offered ascent to new contenders, numerous with lower expense structures and income potential outside saving money.
1. What are the economics of retail banking?
2. What are the key investments made by retail banks in technology for new/expanded delivery channels? Have these investments paid off?
3. What new opportunities for retail banking does the Internet offer? What threats does the Internet pose? What should FleetBoston concentrate on going forward?