Khiaonarong / Liebena Banking on Innovation

Modernisation of Payment Systems
2009
ISBN: 978-3-7908-2333-2
Verlag: Physica-Verlag HD
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 190 Seiten

Reihe: Contributions to Economics

Innovation in banking should be directed at improving the infrastructure that fosters efficient financial services and international trade. In this work, innovation theory is used to show how modern payment systems have transformed the technology of banking and facilitated changes in the strategy and structure of financial services organisations. Design, implementation and dissemination of payment systems are described and the analysis of their costs and benefits is combined with case studies of banks undergoing change. By studying firm capabilities, competencies, and resources, the approach is extended to services in general and linked to the ability of firms to compete and promote national economies. Payment systems vary and advanced and developing economies face obstacles in their legal and technical infrastructure, and maturity of banks. By adopting an international perspective, the book offers a unique comparative analysis that shows what kind of investments are likely to be effective.

Autoren/Hrsg.

Khiaonarong, Tanai

Liebena, Jonathan

Inhaltsverzeichnis

1;Acknowledgments;6
2;Preface;7
3;Contents;9
4;Abbreviations;12
5;Chapter 1 Introduction;15
6;Chapter 2 Payment Systems: An Innovation Perspective;20
6.1;2.1 Models of Innovation;21
6.1.1;2.1.1 The Linear Model;21
6.1.2;2.1.2 The Diffusion Model;22
6.1.3;2.1.3 The Innovation Dynamics Model;23
6.1.4;2.1.4 Teece’s Model;24
6.1.5;2.1.5 The People Perspective;24
6.1.6;2.1.6 The Profit Chain;25
6.1.7;2.1.7 The Services Model;26
6.1.8;2.1.8 The Developing Country Model;26
6.2;2.2 Evolutionary and Resource-Based Models;28
6.2.1;2.2.1 Evolutionary Perspectives;28
6.2.2;2.2.2 Schumpeter;28
6.2.3;2.2.3 Freeman;29
6.2.4;2.2.4 Lundvall;30
6.2.5;2.2.5 Nelson and Winter;31
6.3;2.3 Resource-Based Perspectives;33
6.4;2.4 Comparison of Views;34
6.5;2.5 Analytical Framework;36
6.5.1;2.5.1 Types of Resources-Routines;36
6.5.2;2.5.2 IT Resources;37
6.5.3;2.5.3 Source of Innovation;39
7;Chapter 3 Strategic Approaches to Payment Efficiency and Innovation;41
7.1;3.1 The Minimalist Approach: Australia, Canada, Finland, United Kingdom;42
7.1.1;3.1.1 Australia;43
7.1.2;3.1.2 Canada;44
7.1.3;3.1.3 Finland;46
7.1.4;3.1.4 United Kingdom;47
7.2;3.2 The Competitive Approach: United States;48
7.3;3.3 The Public Service Approach: Thailand;50
7.4;3.4 Comparison of Strategic Approaches;57
7.5;3.5 The Role of the Central Bank in Promoting Innovation;60
7.5.1;3.5.1 Technological Innovations;60
7.5.2;3.5.2 Regulatory Innovations;62
7.5.3;3.5.3 Financial Innovations;63
7.5.4;3.5.4 Key Policy Issues;64
8;Chapter 4 The Analysis of Payment Systems Efficiency;66
8.1;4.1 Analytical Frameworks;67
8.1.1;4.1.1 The Risk-Cost Frontier Framework;67
8.1.2;4.1.2 The Settlement Delay-Liquidity Usage Framework;68
8.1.3;4.1.3 The Economies of Scale Framework;69
8.1.4;4.1.4 The Product Life-Cycle Framework;70
8.1.5;4.1.5 Payment Systems Efficiency Studies;71
8.2;4.2 Use of Payment Instruments and Implications on Efficiency;73
8.2.1;4.2.1 Cash Transactions;73
8.2.2;4.2.2 Cashless Transactions;79
8.2.3;4.2.3 A Model of Payment Instrument Use;81
8.2.4;4.2.4 Financial Services Infrastructure and X-Efficiency;85
8.2.5;4.2.5 Implications on Payment Systems Efficiency;89
8.3;4.3 Pricing of Central Bank Payment Services;91
8.3.1;4.3.1 Pricing Method and Payment Transactions;91
8.3.2;4.3.2 Fees and Central Bank Services;95
8.3.3;4.3.3 Costs and Revenue;97
8.3.4;4.3.4 A Model for Estimating Scale Economies in Large-Value Payment Systems;101
8.3.5;4.3.5 Key Issues;106
8.3.6;4.3.6 Policy Recommendations;107
9;Chapter 5 The Diffusion of Payment Innovations;111
9.1;5.1 Cross-Country Use of Cash and Electronic Payments;113
9.1.1;5.1.1 Alternative Indicator of Cash Use;116
9.2;5.2 Costs of Using Different Payment Instruments;119
9.2.1;5.2.1 Bank Payment Costs;119
9.2.2;5.2.2 Retailer Expense of Accepting Different Payment Instruments;120
9.2.3;5.2.3 Estimating the Number of Cash Transactions;121
9.3;5.3 Projecting Shares of Electronic and Cash Payments in Asia;122
9.3.1;5.3.1 Share of Electronic Payments in Non-Cash Transactions;123
9.3.2;5.3.2 Share of Cash Payments in Consumption;124
10;Chapter 6 Capability Development: The Banking Sector;127
10.1;6.1 Innovation in the Banking Sector;129
10.2;6.2 Payment Automation;134
10.3;6.3 Payment Routines;136
10.4;6.4 Innovative Capabilities;138
10.4.1;6.4.1 Indicators of Innovation;139
10.4.2;6.4.2 Sources of Information;140
10.4.3;6.4.3 Sources of Learning;141
10.4.4;6.4.4 Sources of Technological Capabilities;145
10.5;6.5 Interpreting the Survey;147
10.5.1;6.5.1 Replication of Technology;147
10.5.2;6.5.2 Replication of Payment Systems;150
10.5.3;6.5.3 Replication of Skills;152
11;Chapter 7 Capability Development: Commercial Banks;155
11.1;7.1 Siam Commercial Bank;155
11.1.1;7.1.1 The First Thai Bank;155
11.1.2;7.1.2 Role of IT;156
11.1.3;7.1.3 IT Development Plans;157
11.1.4;7.1.4 Bank Automation and Innovation;158
11.1.5;7.1.5 Sources of Innovation;159
11.2;7.2 Bangkok Bank;161
11.2.1;7.2.1 Thailand’s Largest Bank;161
11.2.2;7.2.2 Role of IT;162
11.2.3;7.2.3 Pioneer in Re-engineering;163
11.2.4;7.2.4 Sources of Innovation;164
11.3;7.3 Kasikornbank;167
11.3.1;7.3.1 Catalyst of Bank Re-engineering;167
11.3.2;7.3.2 Role of IT;167
11.3.3;7.3.3 Sources of Innovation;169
11.4;7.4 Krung Thai Bank;172
11.4.1;7.4.1 Innovative State Bank;172
11.4.2;7.4.2 Role of IT;172
11.4.3;7.4.3 Sources of Innovation;174
11.5;7.5 Lessons Learned;175
11.5.1;7.5.1 Banking Leadership;176
11.5.2;7.5.2 Role of Skilled Staff;176
11.5.3;7.5.3 Role of Re-engineering;178
11.5.4;7.5.4 Role of IT;179
11.5.5;7.5.5 Replication of Resources;180
12;Chapter 8 Future Challenges;183
13;References;187
14;Index;199