Journal of Internet Banking and Commerce
Vol. 10 No. 1 Spring 2005
http://www.ARRAYdev.com/commerce/JIBC/current.asp


========================
From JIBC Publisher Nahum Goldmann
http://www.arraydev.com/commerce/jibc/2005-02/0505-Publ.HTM
========================

I start by recommending to all JIBC readers, and especially senior executives,
professionals
and academics, to consider active participation at the First Global Conference
on
Effectiveness, Profitability, Accountability and Investment Climate of
eCommerce, eFinance
and eGovernance (eCommerce Effectiveness and Profitability 2006) that JIBC is
sponsoring,
see www.micromarktech.com/ecep2006/. Thanks to dedicated effort by Prof. Nikhil
Agarwal, Head of ECEP 2006 Organizing Committee and his capable team, this event
promises to become a major global milestone in the history of ecommerce academic
research and advanced practice.

I would like to use this opportunity to thank Gord Jenkins, our retiring Chief
Editor. His
leadership has always been much appreciated and he will be still a large part of
the
editorial team. From now on Gord will be listed as the Founding Chief
Editor-Emeritus and
Member of the Editorial Board on the JIBC Web site. We all hope he will support
JIBC and,
more important, that his wife and himself still enjoy good health in the years
to come.

With Gord leaving, I am pleased to announce that Prof. Nikhil Agarwal, currently
our India
Contributing Editor, has graciously agreed to become JIBC new Chief Editor. As
some of
you might know, Nik is currently quite busy with setting up JIBC-sponsored
eCommerce
Effectiveness and Profitability 2006 conference in Goa as the Head of its
Organizing
Committee.

Nik has interesting plans for our Journal, particularly to move it towards a
refereed
academic publication, or at least some parts of it. He thinks it's a great
opportunity for us
to bring JIBC to a new level and increase its visibility and circulation, making
it a definitive
publication in its subject area. In that, he would have to fill very large
shoes of Gord, our
Founding Chief Editor whose relentless drive brought JIBC to the current
positive state of
development.

Again, I'd much appreciate it if you give Nik your active support and advise him
on how to
achieve these challenging objectives.

A good news is that this JIBC issue is among the best. A bad news is that my
Internet
provider's filters marked it as spam. This is quite serious, as they use just
common
standard filter software. It means that possibly half of our readers will not
be able to get
the email edition.

Frankly, it is meaningless for us to find out what the filter does not like.
Perhaps it is the
word "ecommerce" repeated many times. Even if we change it and find what
triggers it,
these filters readjust hourly and hence we are doomed. This is a direct result
of spammers
making life miserable for legitimate users, which is their main goal anyway.

The only practical solution that I can see is for our Mailing List Managing
Editor Anne-
Marie Jennings to issue ahead a very brief message to watch for JIBC being
issued in the
next 24 hours so our readers can look at their filter reject boxes, if they
would like to read
the new JIBC issue. The penalty is that it effectively doubles the number of
emails that we
are issuing in a year.

What do you think? Do any of you see a better solution? Please email our new
Chief Editor
or me if you see it.

I enjoyed reading all the articles in the new issue; frankly, it is one of the
main perks of
being a member of the JIBC Editorial Board. As a researcher, the closest ones to
my own
subject of interest are two articles by Tom Buschman and Niki Panourgias on the
new role
of corporate treasuries and the development of globally connected financial
services; as
well as by Kalyan Chakravarthy Bondugula and Akash Maiti on the future of SWIFT;
both
are first class and I and my colleagues could definitely learn from them.

Edwin Jacobs provided an exhaustive review of the leading academic ICT-law
programs in
the European Union. It would be interesting to publish similar reviews for all
the others
vertical and geographic segments or global ecommerce, ebanking and ebusiness.
Joachim
Zentes described activities of the Institute for Commerce & International
Marketing at the
Saarland University. My request to all our readers to consider supplying similar
reference
and review materials to JIBC.

Again I am asking each and every one of you, our readers and subscribers, to
email JIBC to
at least 3 of your colleagues, friends and discussion groups that you are
participating at,
and recommend that they also subscribe.

As well, I am challenging all the current and past authors and editors to email
your articles
-- along with the rest of JIBC edition -- to at least 10 of your peers and
colleagues in
academia, government and industry. Make sure they are aware of your articles and
the
Journal of Internet Banking and Commerce! Recommend that they also subscribe to
email
editions. After all, we only send it around 2-3 times a year.

A special appeal to ecommerce/ebusiness students to pass a word about JIBC to
your
professors and classmates and, more important, to ask them to supply new
articles and
tell everybody to subscribe.

Let's spread the word!


/---------------------ADVERTISEMENT -------------------\
CALL FOR PAPERS: eCommerce Effectiveness and Profitability 2006,
Jan 27-29 2006, Goa, India
Journal of Internet Banking and Commerce is pleased to announce the First Global
Conference on Effectiveness, Profitability, Accountability and Investment
Climate of
eCommerce, eFinance and eGovernance (eCommerce Effectiveness and Profitability
2006).
The Theme of the Conference will be "Executive Decision Making: Improving dialog
between the industry, investors, academia and governments". This essential
conference
seeks to establish a vibrant and constructive global dialogue between senior
industry
executives, investors, central bankers, government policymakers and leading
academics
on how to radically improve eCommerce effectiveness and profitability. Papers
will be
published in the Journal of Internet Banking and Commerce.
http://www.micromarktech.com/ecep2006/
\---------------------ADVERTISEMENT -------------------/


========================
From JIBC Editor-in-Chief Gordon Jenkins
http://www.arraydev.com/commerce/JIBC/2005-02/Editorial%20Spring%202005%
20JIBC.HTM
========================

As I mentioned in previous Editorials, every once in a while it is time to
update and revamp
-- to keep the good but add new ideas. We have been doing this in the last two
edition-
hopefully you have noticed.

The Editorial Team has been emphasizing having a broader or global perspective
-- rather
than a North America/Europe centric focus.

We have now new regular contributing editors this edition for – in alphabetical
order –
Australia, Africa, Japan, Malaysia, Middle East, Singapore and one on security
based in the
U.K. Please check out:
http://www.arraydev.com/commerce/JIBC/editors.asp
for their names and background. Of both the new ones plus our "old" ones.

We are still looking for someone from South America and the Caribbean to round
out the
global perspective.

I would particularly also like to thank the support of the publisher Nahum
Goldmann and
the Assistant Editor Robert Xin Luo.

Read, enjoy and give us your feedback on how we are doing.

Well this is my last Editorial for JIBC as I will be -- as they say -- moving
on.

I have enjoyed my almost 10 years of the "on again -- off again" Editor of JIBC.

The Journal of Internet Banking now -- with this issue -- is where I always
wanted it to be
-- a global respected Journal on internet banking and commerce. This excellent
Edition
proves JIBC is almost there.

And always leave when you are on top -- and this Edition is "tops".

Enjoy.

Regards

Gord Jenkins
Editor JIBC


========================
REGULAR CONTRIBUTORS
========================

UNITED KINGDOM: Phishing - What it is and How it Will Eventually be Dealt With
(By Ian Grigg)
http://www.arraydev.com/commerce/jibc/2005-02/jibc_phishing.HTM
Phishing is an attack on the user and her browser. Addressing phishing
necessarily means
changing the browser, and this creates tensions between those who lose money -
users
and ecommerce sites - and those who need to do the work - browser manufacturers.

UNITED KINGDOM: Identity Cards and Financial Services: How Will the Introduction
of ID
Cards Affect Financial Services Providers
(By David Birch)
http://www.arraydev.com/commerce/jibc/2005-02/birch.htm
We are awash with new payment mechanisms (everything from mobile phones using
infrared to RFID tokens and from Peppercoin to Simpay in the online world).
Attention is
becoming more concentrated, however, with RFID (contactless microprocessor smart
cards) beginning to dominate mind share. RFID has been used successfully in a
range of
programmes, including the Oyster Transport Card in London, UK, the Octopus Card
in
Hong Kong and the MasterCard PayPass programme in the USA. Note the examples:
while
the international schemes are all developing their RFID offerings, for many
people, RFID
isn't really new.

BELGIUM: Some Leading Academic ICT-law Programmes in the European Union
(By Edwin Jacobs)
http://www.arraydev.com/commerce/jibc/2005-02/EdwinJacobs010405.HTM
In this column we give a brief description of some leading academic programs
about ICT-
law in the European Union. On the PLOTEUS-website of the European Commission one
can
find all relevant information about studying in Europe in general. Via its
eLearning Action
Plan, the European Commission wants to encourage further use of electronic means
of
teaching and knowledge and use of ICT-technology as a whole. Some leading
European
universities have organised together a European Legal Informatics Study
Programme
(EULISP) leading to a LL.M. degree.

AUSTRALIA: Ten Tax Issues Relating to Conducting Business in Cyberspace
(By Dale Pinto)
http://www.arraydev.com/commerce/jibc/2005-02/Dale.htm
The rise of Internet commerce will present a range of challenges for the
Australian
Taxation Office (ATO), as it will transcend state and national borders and
commerce will
become truly global in every sense. Small and medium enterprises (SMEs), and
more
consumers than ever before, will have the opportunity from the comfort of their
personal
computers or WebTVs, to buy and sell goods internationally.

MALAYSIA: Multimedia Banking and Technology Acceptance Theories
(By P. Vijayan, Vignesen Permual, and Bala Shanmugam)
http://www.arraydev.com/commerce/jibc/2005-02/vignesan.htm
Human beings, being creatures of habit will probably view anything that is new
with
caution and suspicion. The same applies to multimedia banking. People are
cautious and
often downright reluctant to depart from traditional brick and mortar banks to
electronic
click and avatar banks. On the other hand, however with the threat of
globalization in
sight and possible squeezes in margins banks are attempting to 'push' clients
towards
multimedia banking.

CANADA: Entering the Internet Race: The Early Years of the Internet and Internet
Commerce in Japan
(By Carin Holroyd)
http://www.arraydev.com/commerce/JIBC/2005-02/Japan.HTM
Ten years ago, Japan lagged well behind in the race to capitalize on the
commercial and
other possibilities of the Internet. Cumbersome government regulations and an
Internet-
averse business community combined with aspects of Japanese society to make the
Internet less compelling in Japan than other countries. The advent of the mobile
Internet
resulted in an exponential growth in Japanese e-commerce and m-commerce,
vaulting the
country into the world lead in the development of profitable Internet-based
business
models. This essay summarizes the early history of the Internet in Japan and
outlines the
general contours of Internet commerce in the country.

SINGAPORE: Bridging Strong Authentication with PKI
(By Tan Teik Guan)
http://www.arraydev.com/commerce/JIBC/2005-02/otpk.htm
With the banks investing heavily in strong 2-factor authentication
infrastructures for their
Internet Banking systems, there must be a greater business justification for
implementing
and maintaining this investment. This can be materialized through the banks
exploiting
the 'secured' Internet channel to carry out larger volume and higher-value
transactions
with their clients. The use of PKI (Public Key Infrastructure) for digital
signatures on these
transactions will give the banks the legal recourse and protection (through the
digital
signature laws) to launch more products over the Internet or push for more
B-to-B
straight-through processing for greater business efficiencies.

UAE: Internet Banking: An Empirical Investigation Into the Extent of Adoption by
Banks and
the Determinant of Customer Satisfaction in the United Arab Emirates
(By Raed Awamleh and Cedwyn Fernandes)
http://www.arraydev.com/commerce/JIBC/2005-02/raedcedwyn1.HTM
Although the banking sector in the United Arab Emirates is a regional leader,
internet
banking in the United Arab Emirates is yet to be properly utilized as a real
added value
tool to improve customer relationship and to attain cost advantages. To identify
factors
influencing satisfaction of internet banking customers, data was collected from
internet
banking users in the United Arab Emirates. To examine the data, a factor
analyses and
multiple regression analyses were conducted. It was revealed that convenience
and
security of internet banking transactions have a significant impact on
satisfaction. The
effects of age, gender, number of years as an internet banking user were also
explored.
Security of internet banking transactions was significant for those using
internet banking
for more than two years, while not for others. Implications of results were
discussed, and
future research directions outlined.

SOUTH AFRICA: Determinants of Internet and Cell Phone Banking Adoption in South
Africa
(By Irwin Brown and Alemayehu Molla)
www.arraydev.com/commerce/JIBC/2005-02/brown. HTM
More and more banks are turning to self-service technologies to provide
customers with
many channels to access products and services. Internet and cell phone are some
of the
least cost and increasingly popular financial services delivery channels. In
developing
countries though, the level of information and communications technology
development,
the cost of Internet and the limited bandwidth of mobile networks and other
access
technologies constrain such innovation. In this paper, we explore the factors
that affect
Internet and Cell Phone banking adoption in South Africa. We also compare the
differences
in the perception of Internet banking and cell phone banking and the influence
factors.
The findings indicate that both the adoption intent and the perception of
Internet banking
users differ markedly from cell phone banking users. The results are discussed
and some
implications for banks are outlined.


/---------------------ADVERTISEMENT -------------------\
CALL FOR PAPERS: eCommerce Effectiveness and Profitability 2006,
Jan 27-29 2006, Goa, India
Journal of Internet Banking and Commerce is pleased to announce the First Global
Conference on Effectiveness, Profitability, Accountability and Investment
Climate of
eCommerce, eFinance and eGovernance (eCommerce Effectiveness and Profitability
2006).
The Theme of the Conference will be "Executive Decision Making: Improving dialog
between the industry, investors, academia and governments". This essential
conference
seeks to establish a vibrant and constructive global dialogue between senior
industry
executives, investors, central bankers, government policymakers and leading
academics
on how to radically improve eCommerce effectiveness and profitability. Papers
will be
published in the Journal of Internet Banking and Commerce.
http://www.micromarktech.com/ecep2006/
\---------------------ADVERTISEMENT -------------------/


========================
FEATURE ARTICLES
========================

UNITED KINGDOM: Applying Standardised, Interoperable and Innovative Automated
Solutions: Corporate Treasuries and the Development of Globally Connect
Financial
Services
(By Tom Buschman and Nikiforas S. Panourgias)
http://www.arraydev.com/commerce/jibc/2005-02/buschman.HTM
Large multinational corporations operate in a wide variety of countries with a
range of
risks associated with their size, infrastructures and operational practices.
Increasingly
ubiquitous and powerful ICTs have enabled the centralisation of many support
functions
from local operations to the corporate headquarters. This, in turn, has led to a
concentration of contracting for financial services with global and strong
regional banks,
primarily in Western countries by corporate treasuries. In this context, the
development
and adoption of standardisation in informational linkages can become a crucial
component in remote and centralised decision-making by providing a mechanism for
re-
engaging financial service providers in emerging markets in the execution of
financial
services with limited intermediation from global or regional banks. Prime broker
services,
for example, combined with an efficient processing of transactions, can
facilitate enhanced
international market access for local financial institutions by providing the
necessary credit
intermediation between multinational corporations and local financial
institutions.

MALAYSIA: Internet Activities Among Malaysian Insurance Companies
(By Ainin Sulaiman, Noor Ismawati Jaafar and Tee Chee Kiat)
http://www.arraydev.com/commerce/jibc/2005-02/jaafar.htm
The Central Bank of Malaysia (Bank Negara of Malaysia) has established
guidelines that
allow insurers to offer their services online. This study describes the extent
of Internet
usage among Malaysian insurers. Some insurers have already begun to use the
Internet to
conduct their daily business transactions, some are in the midst of planning to
use and
some do not have plan to use at all. Many of them stated that security, customer
readiness
and cost of initial investment were important considerations when deciding to
adopt
Internet technologies.

MALAYSIA: The Profiling of the Internet Banking Adopter
(By Kooi Guan Cheah, Sanmugan A. AmBank, and Soon Yin Tan)
http://www.arraydev.com/commerce/jibc/2005-02/profiling.HTM
The change of outsourcing business has transformed from the outsourcing of
generic IT
services to the outsourcing of specific IT services Information System
Outsourcing. The
basic need of the customer is to find an adaptable and comprehensive Information
and
Communication Technology (ICT) management solution. Service Providers have to
ensure
end-to-end service is protected, all the elements must be included, physical
protection to
the core communications infrastructure, including network equipment, routers,
switches,
servers and so on, back-up power sources located in bunkers, virtually
defence-level
protection, have to be available to ensure uninterrupted network operation.

MALAYSIA: Incorporating Electronic Business Initiatives in Health Services and
Health
Tourism: A Case Study of Malaysia
(By Mohammed Talh and Abdullah Sallehhuddin Abdullah Salim
http://www.arraydev.com/commerce/JIBC/2005-02/Talha.htm
The Internet has resulted in the emergence of virtual markets with four primary
distinctive
characteristics, which are real time, shared, open and global. Incorporating
E-business
initiatives in health services aims to go beyond the traditional modes of
healthcare delivery
and instead, provide greater access to better and higher quality healthcare. It
is achieved
by grabbing opportunities of enhanced multimedia and information technologies
and
developing new technological solutions. In addition, E-business initiative is
incorporated
in enhancing health tourism sector through cost cutting strategies and improving
quality
of patients' care.

USA: SWIFT: Can This Elephant Dance?
(By Kalyan Chakravarthy Bondugula)
http://www.arraydev.com/commerce/JIBC/2005-02/chakravarthy.htm
"The Society for Worldwide Interbank Financial Telecommunication (S.W.I.F.T.) is
a
Brussels-based, member-owned body that aims to provide low-cost, competitive
financial
processing and communication services while maintaining high levels of quality,
integrity,
reliability, and security. SWIFT has been relatively successful in meeting the
expectations
of its members. However, rapid disruptive changes in technology have facilitated
emergence of a new breed of challengers. This has forced SWIFT to react quickly
and
adopt a new strategic posture to not only retain its dominant position in the
banking
messaging space but also improve its position in securities and corporate
messaging
markets.

GERMANY: Multi-Channel Retailing
(By Hanna Schramm-Klein and Dirk Morschett)
http://www.arraydev.com/commerce/JIBC/2005-02/schramm-klein.htm
Multi-channel retailing entails the parallel use by retailing enterprises of
several sales
channels. The results of an online buyer survey which has been conducted to
investigate
the impact of multi-channel retailing (i.e. the use of several retail channels
by one retail
company) on consumer behaviour show that the frequently expressed concern that
the
application of multi-channel systems in retailing would be associated with
cannibalization
effects, has proven unfounded. Indeed, the appropriate degree of similarity,
consistency,
integration and agreement achieves the exact opposite. Different channels create
different
advantages for consumers. Therefore the total benefit an enterprise which has a
multi-
channel system can offer to its consumers is larger, the greater the number of
available
channels. The use of multi-channel systems is associated with additional
purchases in the
different channels. Such systems are thus superior to those offering only one
sales channel
to their customers. Furthermore, multi-channel systems with integrated channels
are
superior to those in which the channels are essentially autonomous and
independent of
one another. In integrated systems, consumers can achieve synergy effects in the
use of
sales-channel systems. Accordingly, when appropriately formulated, multi-channel
systems in retailing impact positively on consumers. They use the channels more
frequently, buy more from them and there is a positive customer-loyalty impact.
Multi-
channel systems are strategic options for achieving customer loyalty, exploiting
customer
potential and for winning new customers. They are thus well suited for
approaching
differing and varied target groups.

GERMANY: Institute for Commerce & International Marketing at the Saarland
University,
Germany: A Research Center in the Field of Retail Management and E-Commerce
(By Joachim Zentes)
http://www.arraydev.com/commerce/JIBC/2005-02/zentes.htm
The Institute for Commerce & International Marketing (formerly: Institute for
International
Marketing) at the Saarland University, Saarbruecken, Germany, was established in
1991. Its
director is Prof. Dr. Joachim Zentes. The first activity of the institute is
university
education. The institute is at the same time closely connected to one of the
chairs of
business administration at Saarland University. About 150 to 200 students per
semester
are educated in lessons on retail management, logistics and IT, international
marketing
and international business. In addition to the undergraduate program, the
researchers of
the institute are involved in the activities of the so called Europa-Institute
at the Saarland
University, a MBA-program, in which graduate students from all over the world
are taught
in all aspects of international business, with a special focus on the European
integration
process.

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====================
Administrative Notice
====================

Journal of Internet Banking and Commerce

JIBC is a leading edge publication that informs banking and electronic commerce
professionals and executives on principal developments, benchmark practices, and
future
trends in the Internet-based marketing practices of governments and industry.
This free
online interactive journal is a way to keep in touch, to share information, and
to establish
business contacts (networking) for worldwide professionals that specialize in
electronic
commerce, governance and banking solutions.

In JIBC you will find informed discussion of the latest internet-based banking
and
electronic trends and practices from around the world. Our priority is quality,
not quantity.
We want to maintain JIBC as a service that provides substantial information and
an
effective forum for your articles, your letters, your insights and ideas.

JIBC invites banking and electronic commerce professionals, academicians and
publishers
to submit important announcements, original articles, guest columns and
significant
feature presentations. We also welcome surveys, book reviews and letters to the
Editor.
Technical discussions in highly specialized areas of expertise will be kept to
an absolute
minimum.

JIBC is formally issued three to four times a year when an email summary of
current
articles is distributed to subscribers. The full text of current articles is
posted on the JIBC
Web site at http://www.ARRAYdev.com/commerce/JIBC/current.asp.

The publication is complemented by the Compendium of Internet Banking and
Commerce
Initiatives at
http://www.arraydev.com/frames/f-guest_comp.htm.
We invite readers to provide brief descriptions of products, books, and services
that they
think others will find interesting.

The Journal of Internet Banking and Commerce (JIBC) is provided as a service by
ARRAY
Development based in Ottawa, Canada. Views expressed are those of the authors
and are
not necessarily shared by ARRAY Development. Firms or individuals interested in
sharing
sponsorship of this project may contact array (at) ARRAYdev.com.

The JIBC Web Archive http://www.arraydev.com/commerce/jibc/articles.htm contains
all
articles published to date.

You can reach the Editor-in-Chief Prof. Nikhil Agarwal with any questions or
comments by
email at:
nikhil.jibc@...

Publisher Nahum Goldmann is at:
Nahum.Goldmann (at) ARRAYdev.com.


Editorial Board
http://www.arraydev.com/commerce/jibc/editors.asp

Publisher and Member of the Editorial Board: Nahum Goldmann

Chief Editor: Gord Jenkins

Chief Editor-Designate: Prof. Nikhil Agarwal

Founding Chief Editor Emeritus and Member of the Editorial Board: Gord Jenkins

Assistant Editor: Xin "Robert" Luo

Mailing List Managing Editor: Anne-Marie Jennings

Contributing Editors
U.K. Contributing Editor: David G.W.Birch
Australia Contributing Editor: Dale Pinto
Japan Contributing Editor: Carin Holroyd
Legal Contributing Editor: Edwin Jacobs
India Contributing Editor: Nikhil Agarwal
Middle East Contributing Editor: Raed Awamleh
Africa Contributing Editor: Alemayehu Molla
France Contributing Editor: Jean-Michel Sahut

Please send any questions related to maintenance of the Web site to:
array (at) ARRAYdev.com

Information and subscription for JIBC mailing list is available via:
http://groups.yahoo.com/group/JIBC/

/---------------------ADVERTISEMENT -------------------\
CALL FOR PAPERS: eCommerce Effectiveness and Profitability 2006,
Jan 27-29 2006, Goa, India
Journal of Internet Banking and Commerce is pleased to announce the First Global
Conference on Effectiveness, Profitability, Accountability and Investment
Climate of
eCommerce, eFinance and eGovernance (eCommerce Effectiveness and Profitability
2006).
The Theme of the Conference will be "Executive Decision Making: Improving dialog
between the industry, investors, academia and governments". This essential
conference
seeks to establish a vibrant and constructive global dialogue between senior
industry
executives, investors, central bankers, government policymakers and leading
academics
on how to radically improve eCommerce effectiveness and profitability. Papers
will be
published in the Journal of Internet Banking and Commerce.
http://www.micromarktech.com/ecep2006/
\---------------------ADVERTISEMENT -------------------/