Service Industry and the Internet
The Internet is a revolutionary
power that is opening the floodgates of the financial services industry
that have been built over the past 40 years, resulting in the introduction
of greater transparency, which will render the intermediary role
of brokers and investment banks less valuable.
It is now apparent that a more serious challenge to
the existing order is the distribution strength of the Internet
and the growing importance of retail investors who are directly
accessing a greater share of new services and indeed equities without
the "traditional" intermediary services of investment
banks and brokers. It is clear that the entire landscape of the
wholesale financial service industry is being transformed.