Journal of Internet Banking and Commerce
Vol. 12 No. 1, April 2007
http://www.arraydev.com/commerce/jibc/current.asp

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From JIBC Publisher Nahum Goldmann
http://arraydev.com/commerce/JIBC/0704/0704-Publ_PDFVersion.pdf
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On the New Format and the Very Same People

As you start to read our newly re-constituted Journal in the
PDFformat, I am certain that you wouldn't help but feel that JIBC has
moved to a higher quality level. The articles look more professional
and are much easier to read. According to the Managing Editor Dr. Xin
"Robert" Luo, who prepared this new issue and placed it on the Web, at
least 90% of all submissions were presented fully according to the
template, which makes his task much easier.

Readability of PDF files is also evidently higher than that for the
HTML. JIBC Chief Editor Prof. Nikhil Agarwal and Contributing Editor
Prof. Joshua Fogel have actively supported Robert in the transition to
a new format. My sincere thanks to them and to the numerous authors --
and readers -- who collectively make our publishing effort worthwhile.

Robert also asked me to share a good news with you that JIBC is now
being indexed in Cabell's lists. JIBC section on Listings in Search
Engines and Reference Publications
(http://www.arraydev.com/commerce/jibc/guides.htm#Listing) already
reflects this new achievement. JIBC is currently represented in:

• EBSCO Business Source Complete
• EBSCO Business Source Premier
• EBSCO A-to-Z Service
• Cabell's Directory of Publishing Opportunities in Economics and Finance
• Cabell's Directory of Publishing Opportunities in Computer Science
and Business Information Systems
• DOAJ, the Directory of Open Access Journals
• Google search engine
• Yahoo search engine

Please contact us with the suggestion of how to submit information on
JIBC to other leading search engines and academic reference
publications. Also, if you notice publications referring to JIBC
articles, please let us know.

On page: http://www.arraydev.com/commerce/JIBC/current.asp you can
find now links to posting our publication to Digg this, del.icio.us
and Slashdot. Please share information about JIBC articles with the
Internet community and suggest to us new ways to promote JIBC among
the academic and professional communities around the globe.

On a personal note, good news as relates to JIBC Contributing Editor
Edwin Jacobs is that Edwin has recently became the head of the TMT-IP
(Technology, Media, Telecom - Intellectual Property) department of a
leading independent law firm Monard-D'Hulst in Brussels. Well done!
For those of you who are looking for a foremost European legal expert
in the IP law, a stop at Edwin's offices in Brussels might be a
logical choice.

Frankly, as the Publisher, I am always delighted to hear that editors
and authors associated with JIBC excel both professionally and
personally. Please do email me information of your recent
achievements that might be of particular interest to our professional
and academic readership.

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 own 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 send it around but 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!

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From JIBC Editor-in-Chief Nikhil Agarwal
http://www.arraydev.com/commerce/jibc/2007-04/EditorialNote_PDFVersion.pdf
=============================================

First issue of year always brings smile on the face. The year not new
enough to say happy new year, still I would give wishes for the
remaining months. May the money Gods shine on you.

I am pleased to announce that JIBC is supporting Ecommerce and
Internet Governance conference (ECIG2007), October 19th - 20th 2007,
Sousse (Tunisia) [www.ecig2007.org]. The conference is organized by La
Rochelle Business School (France); Laval University (Canada),
University of Poitiers (France) & University of Sfax (Tunisia) along
with The Information and Management Association (AIM), the
International Telecommunication Society (ITS), The Internet Society
(ISOC France, Quebec et Tunisia), The Journal of Internet Banking and
Commerce and the support of the European Social Fund. This 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 Internet Governance which includes the
governance of Internet infrastructures, the governance of the content
exchanged through the Internet, and the governance of organisations in
the context of the information society. The best papers would be
published by JIBC as part of special issue after the conference. I
would request you all to mark your diaries and visit the conference to
enjoy the wonderful Tunisian hospitality. For further information on
the conference, please contact our Editor Professor Jean-Michel SAHUT
[sahutjm[at]esc-larochelle.fr]

In current issue we have 10 articles. The 10th Annual Digital Money
Forum was held in London in March 2007. Dave Birch summarizes his
personal observations on first decade of digital money. Continuing on
his work on SWIFT, Edwin Jacobs gives further analysis of Safe Harbor
framework of the European data privacy legislation.

Abdullah S. Al-Mudimigh in his paper evaluates the success of the
e-business model and e-business strategy implemented by Citibank in
the United Arab Emirates in offering its retail Internet Banking
Service; Citibank Online. Tomas Hes talks about innovations in
investment in Mexico and overview of Electronic Loan Exchange Network,
ELEN Project in development between group of Czech elite bankers, IT
specialists and FIPS, prime Mexican microfinance institution.

Carin Holroyd highlights how Japan, through triple helix of
university-industry- government, remains frontrunner in global
innovation race. Sunil Khandelwal and Dayanand Pandey discuss the
risks involved in large value payment system (LVPS), economic
dependency and measures to control these risks. Goi Chi Lee has
comprehensively reviewed the existing web site models for e-commerce,
a good material for future research. Daniel Nilsson explains that
self-service technology is easy for consumers but not problem free. He
explores the gaps between seller support, third party and SSTs. B.A
Ranjith Appuhami investigate the impact of the value creation
efficiency on investors' capital gain on shares in Thailand. Sven
Christian Berger, through his extensive survey, draws insights on
online banking consumer characteristics.

You would be glad to know that JIBC is now listed by prestigious
Cabell's lists. You must have noticed the new look in our publication
format (pdf). We value your support and seek continuous feedback. We
are working harder to keep JIBC top-notch publication in its area.
Please feel free to write to me for any further
improvement/enhancement you would like to see, we will do our best.

Have a profitable year ahead.

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OPINION ARTICLES
======================

UNITED KINGDOM: The Digital Money Decade
(By David Birch)
http://www.arraydev.com/commerce/jibc/2007-04/22_DM10_PDFVersion.pdf

The tenth annual Digital Money Forum, held in London at the end of
March, was a good opportunity to see how the world of retail
electronic payments has evolved in last decade. It looks as if the
technology platforms of smart cards, wireless communications, mobile
phones and cryptography are coming together within a regulatory
framework to make the often discussed "war on cash" something more
than just talk. The prospect of simple, inexpensive payments across
all retail channels - with the attendant benefits in trade and market
growth - is real and it is already clear that a technology nexus
around, in particular, the mobile handset and contactless payments is
going to make real difference in the way that the average person pays.


BELGIUM: SWIFT Privacy: Data Processor Becomes Data Controller
(By Edwin Jacobs)
http://www.arraydev.com/commerce/jibc/2007-04/JACOBS-PDFVersion.pdf

Last month, SWIFT emphasised the urgent need for a solution to
compliance with US Treasury subpoenas that provides legal certainty
for the financial industry as well as for SWIFT. SWIFT will continue
its activities to adhere to the Safe Harbor framework of the European
data privacy legislation. Safe Harbor is a framework negotiated by the
EU and US in 2000 to provide a way for companies in Europe, with
operations in the US, to conform to EU data privacy regulations. This
seems to conclude a complex privacy case, widely covered by the US and
European media. A fundamental question in this case was who is a data
controller and who is a mere data processor. Both the Belgian and the
European privacy authorities considered SWIFT, jointly with the banks,
as a data controller whereas SWIFT had considered itself as a mere
data processor that processed financial data for banks. The difference
between controller and processor has far reaching consequences.


SAUDI ARABIA: E-Business Strategy in an Online Banking Service: A Case
Study
(By Abdullah S. Mudmigh)
http://www.arraydev.com/commerce/jibc/2007-04/AbdullahFinal_PDFVersion.pdf

Banks today are aware of both the threat and the opportunity that the
Web represents. No traditional bank would dare face investment
analysts without an Internet strategy. But even a detailed and
thoughtful approach to the Web does not guarantee business success.
The main purpose behind the launching of online banking services is to
provide the customers with an alternative, more responsive and with
less expensive options. With options just a click away, customers
have more control than ever. They expect real-time answers and
superior usability. They also want personal attention and highly
customized products and services. The focus of e-business must always
be on the customer. On the other hand, the technology and the business
structure follow on form of the value you intend to provide to the
customer.

This paper evaluates the success of the e-business model and
e-business strategy implemented by Citibank in the United Arab
Emirates in offering its retail Internet Banking Service; Citibank
Online.

GERMANY: Investment Capital Flows, Mexican Economics and Electronic
Loan Exchange Project
(By Tomas Hes)
http://www.arraydev.com/commerce/jibc/2007-04/TomasHes_PDFVersion.pdf

Private capital flows to emerging markets continue at high levels, but
concerns are growing about their sustainability. Direct equity
investment slows down, as well as lending by bond investors and
private creditors. The potential global impact of a US economy
slowdown, global financial imbalances and geopolitical tensions
present motives for cautiousness. Situation in Mexico, the world's
ninth largest economy, seems favorable, but confirms written above.
Mexico's FDI rises, but slow down is expected: and with more than 40%
of the population living below official poverty line, the inequality
continues rampant.

Fortunately, there are innovations unseen ever before promising ways
how to tackle the lack of investment. Electronic Loan Exchange
Network, ELEN Project in development between group of Czech elite
bankers, IT specialists and FIPS, prime Mexican microfinance
institution. Goal of this ambitious endeavor is to enable tens of
millions of small European and US investors to lend for attractive
interest rate to poor micro-borrowers in marginalized regions on a
massive scale, thus creating an alternative for savings accounts and
stock market investments.

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PEER REVIEWED RESEARCH PAPERS
=============================

CANADA: Japan Tech: The Foundation of the Innovation Revolution
(By Carin Holroyd and Ken Coates)
http://www.arraydev.com/commerce/jibc/2007-04/CarinHolroydFinalApril2007_
PDFVersion.pdf

All industrial nations agree that scientific and technological
innovation holds the key to 21st-century economic prosperity and
competitiveness. Japan has responded to the challenges and
opportunities of the current environment by investing heavily in basic
science and emphasizing efforts to commercializing new discoveries and
technologies. Japan's ability to marshal the resources of government
research units, the private sector and a reformed public university
system has been matched by substantial government investments and
policy initiatives designed to ensure that the country stays at the
forefront of the global innovation movement.


UAE: Risks in Large Value Payment Systems
(By Sunil Khandelwal and Dayanand Pandey)
http://www.arraydev.com/commerce/jibc/2007-04/DNPandeyDubai_PDFVersion.pdf

Payment system is an integral part of the entire banking system in
every country. Payment systems in centrally planned economies differ
greatly from market-driven economies. Almost all market-driven
economies depend heavily on latest technology for efficient
functioning of payment systems. The same technology is also a source
of risks, which are found only in technology oriented payment systems,
such as systemic risk. The discussion on LVPS assumes important
dimensions due to its direct implications on financial market. The
efficient functioning of payment system is necessary for the efficient
functioning of the financial sector. Strong and sound payment system
is required not only for long-term stability of financial system but
also for trouble free day-to-day working of settlements. The
transaction on the financial market, generate risks for counterparties
who undertake them, for the bankers, for the other intermediaries and
for the central bank. The risks are greater in the case of LVPS. The
disturbances in these settlements can have wider repercussions for the
financial system and the economy as a whole. Due to application of
technology the time taken for settling the transactions has been
drastically reduced increasing to large volume exposures. The
structure of payment system determines the type of risk, who bears the
risks and the vulnerability of the system.

MALAYSIA: A Review of Existing Website Models for E-commerce
(By Chai Lee Goi)
http://www.arraydev.com/commerce/jibc/2007-04/GoiChaiLee_PDFVersion.pdf

On reviewing the literature it became evident that previous
researchers adopted a high-level approach to the development of Web
site design models. The models were designed to be adapted to multiple
industries resulting in broad categories. The literature has uncovered
three main ways of classifying Web sites. The digital business model,
e.g. Wen, Chen and Hwang (2001) and Schneider and Perry (2001)
describe ways in which business can be conducted over the Web. The
stages of development model, e.g. Ho (1997), Burgess and Cooper
(1999), Boon, Hewett and Parker (2000), Lowe (2001), Becker (2002) and
Davidson (2002) describes different stages of development with
functionality mapped to each stage. In scoring systems, e.g. Elliot
(2002), Cast Bobby (1999) and Gartner (2002), specific features of a
Web site are identified and given a score.

SWEDEN: Internet Banking and the Impact of Seller Support and Third Party
(By Daniel Nilsson)
http://www.arraydev.com/commerce/jibc/2007-04/NilssonFinal_PDFVersion.pdf

An explosion of new technologies has taken place within the retail
environment. More and more service providers have begun to use a wide
range of technologies that allow consumers to produce and use the
services by themselves, without direct contact from the employees of
the firm. However, usage of services in new technologies is rarely
problem-free; consumers may encounter obstacles during the
interaction. This article examines what influence seller support and
the third party, as sources for assistance, has on consumers' usage of
SSTs.

SRI LANKA: The Impact of Intellectual Capital on Investors' Capital
Gain on Shares: An Empirical Investigation of the Thai Banking,
Finance and Insurance Sector
(By B.A. Ranjith Appuhami)
http://www.arraydev.com/commerce/jibc/2007-04/RanjithFinal_PDFVersion.pdf

The purpose of this article is to investigate the impact of the value
creation efficiency on investors' capital gain on shares. The author
used the data collected from listed companies in Thailand stock market
and Pulic's (1998) Value Added Intellectual Coefficient (VAIC TM) as
the measure of intellectual capital and developed multiple regression
model to investigate the impact of corporate value creation efficiency
on investors' capital gain. The empirical research found that firms'
intellectual capital has a significant positive relationship with its
investors' capital gain on shares. The findings enhance knowledge base
of intellectual capital and develop a concept of intellectual capital
in achieving competitive advantages in emerging economies such as
Thailand.

GERMANY: Online Banking Customers: Insights from Germany
(By Sven Christian Berger)
http://www.arraydev.com/commerce/jibc/2007-04/SvenBergerFinal_PDFVersion.pdf

Online banking is wide spread among German banking customers. But what
really characterizes those customers? Using data from a nation-wide
survey of about 20,000 retail-banking customers, the authors analyze
the profile of online banking customers and their banking behavior.

/---------------------CALL FOR PAPERS-------------------\

Call for Paper for Ecommerce & Internet Governance conference

La Rochelle Business School, Laval University (Canada), University of
Poitiers & University of Sfax are pleased to announce the First Global
Conference on "eCommerce & Internet Governance", October 19-20, in
Sousse (Tunisia) with the Information and Management Association
(AIM), The International Telecommunication Society (ITS), The Internet
Society (ISOC France, Quebec et Tunisia), The Journal of Internet
Banking and Commerce and the support of the European Social Fund.

This 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 Internet Governance
which includes the governance of Internet infrastructures, the
governance of the content exchanged through the Internet, and the
governance of organisations in the context of the information society.
/---------------------CALL FOR PAPERS-------------------\


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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 Nikhil Agarwal with any questions or
comments by email at:
nikhil.jibc (at) gmail.com

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


=================================
Editorial Board
=================================

Publisher and Member of the Editorial Board: Nahum Goldmann

Chief Editor: Nikhil Agarwal

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

Managing Editor: Xin "Robert" Luo

Mailing List Managing Editor: Anne-Marie Jennings

Contributing Editors
UK Contributing Editor: David G.W.Birch
US Contributing Editor: Joshua Fogel
Australia Contributing Editor: Dale Pinto
Japan Contributing Editor: Carin Holroyd
Middle East Contributing Editor: Raed Awamleh
Legal Contributing Editor: Edwin Jacobs
Africa Contributing Editor: Alemayehu Molla
France Contributing Editor: Jean-Michel Sahut
India Contributing Editor: Arun Mohan Sherry
Malaysia Contributing Editor: Bala Shanmugam
Canada Contributing Editor: Arthur J. Cordell


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

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