Pest Analysis Virtual Banking
Table of Contents
1. PEST Macro-Analysis 2
1.1. Overview 2
Political Factors 2
Economical Factors 3
Social Factors 4
Technological Factors 4
PEST Macro Analysis Summary 5
Bibliography 6
1. PEST Macro-Analysis
1.1. Overview The virtual banking industry was based primarily on the confidence of the users in the web-based banking technology and the authenticity of the virtual banks. The industry also projected constant changes to the regulations and technology which would define the technology acceptance by the general public.
Virtual banking services which had been deployed since 1980 by Bank ONE of Columbus, Ohio (Darlin 1997), had a tremendous growth since then to 1,130 banks deploying online banking services by 1999 (John Frank Yother (the university of Alabama) 2007). As such, Nexity would have an increase resistance from competitors and penetration into the virtual banking market would be difficult without providing a unique combination of technology or service to the virtual banking users.
This PEST analysis is conducted at a macro level to examine the technological advancements which would propel and prove viable for Nexity to launch into the Virtual Banking industry in the 21 century. Political Factors In 1999, Rep. Bob Goodlatte (R-VA), Rep. Zoe Lofgren (D-CA), and others sponsored and submitted a bill to congress to be reviewed so as to change the export controls on encryption software or tools which could be used globally or exported out of country (Encryption rights in the U.S., and encryption export restraints. 1999). This bill which eventually was approved in year 2000 would allow clients of virtual banks to transcend physical barriers to invest and maintain accounts in the U.S. without the fear for the security of their transactions or the need for physical presence either locally or while away from the U.S. This would also allow global U.S companies to conduct the banking through the internet from their branch
1. PEST Macro-Analysis 2
1.1. Overview 2
Political Factors 2
Economical Factors 3
Social Factors 4
Technological Factors 4
PEST Macro Analysis Summary 5
Bibliography 6
1. PEST Macro-Analysis
1.1. Overview The virtual banking industry was based primarily on the confidence of the users in the web-based banking technology and the authenticity of the virtual banks. The industry also projected constant changes to the regulations and technology which would define the technology acceptance by the general public.
Virtual banking services which had been deployed since 1980 by Bank ONE of Columbus, Ohio (Darlin 1997), had a tremendous growth since then to 1,130 banks deploying online banking services by 1999 (John Frank Yother (the university of Alabama) 2007). As such, Nexity would have an increase resistance from competitors and penetration into the virtual banking market would be difficult without providing a unique combination of technology or service to the virtual banking users.
This PEST analysis is conducted at a macro level to examine the technological advancements which would propel and prove viable for Nexity to launch into the Virtual Banking industry in the 21 century. Political Factors In 1999, Rep. Bob Goodlatte (R-VA), Rep. Zoe Lofgren (D-CA), and others sponsored and submitted a bill to congress to be reviewed so as to change the export controls on encryption software or tools which could be used globally or exported out of country (Encryption rights in the U.S., and encryption export restraints. 1999). This bill which eventually was approved in year 2000 would allow clients of virtual banks to transcend physical barriers to invest and maintain accounts in the U.S. without the fear for the security of their transactions or the need for physical presence either locally or while away from the U.S. This would also allow global U.S companies to conduct the banking through the internet from their branch
Bibliography: American Institute of Certified Public Accountants, Inc. and Canadian Institute of Chartered Accountants. "WebTrust SM Principles and Criteria for Business-to-Consumer Electronic Commerce." Vers. 1.1. WebTrust SM Principles and Criteria for Business-to-Consumer Electronic Commerce. 1999. http://www.ftc.gov/bcp/icpw/comments/wtprinciples.pdf (accessed September 21, 2008). Business Wire. Fiserv Introduces UniFi PRO Consumer 2.0; Client/Server Solution Supports All Types of Consumer Lending. September 17, 1999. http://findarticles.com/p/articles/mi_m0EIN/is_1999_Sept_17/ai_55775178 (accessed September 21, 2008). Darlin, Damon. "Try E-banking." Forbes 159, no. 1 (January 1997): 68-69. Emory W. Rushton (Senior Deputy Comptroller, Bank Supervision Policy). "Policy Statement : Accounting for Computer Software Costs Developed or obtained for internal use." Comptroller of the Currency Administrator of National Banks. July 9, 1998. http://www.occ.treas.gov/ftp/bulletin/98-29.txt (accessed September 21, 2008). "Encryption rights in the U.S., and encryption export restraints." HR 850 IH, Security and Freedom Through Encryption (SAFE) Act. Feburary 25, 1999. http://www.techlawjournal.com/cong106/encrypt/hr850ih.htm (accessed September 21, 2008). John Frank Yother (the university of Alabama). "Case study Nexity and U.S.Banking Industry." Chap. 10 in Crafting and Executing strategy, by A. J. Strickland, John E. Gamble Arthur A. Thompson, C-163 to C-184. New York: Mcgraw-hill, 2007. Levin, Carol, and Sharon Nash. "E-Banking Boom." PC Magazine 18, no. 9 (May 1999): 10. Mote, Dave. Hoover 's Profile: Fiserv Inc. http://www.answers.com/topic/fiserv-inc (accessed September 21, 2008). The New York Times - Business. INTERNET USERS NOW EXCEED 100 MILLION. December 11, 1999. http://query.nytimes.com/gst/fullpage.html?res=9C0CE3D9163DF931A25752C1A96F958260# (accessed September 21, 2008). Verisign. "VeriSign Granted Federal Approval to Significantly Expand Issuance of 128-bit Website Digital Certificates." Verisign Corporate News. March 8, 1999. https://www.verisign.com/corporate/news/1999/globalserverids.html (accessed September 21, 2008).