The internationalization of Dutch banks: A new beginning?

Abstract

In this article an analysis is made of the internationalization of Dutch banks in the period 1983–1992. It is stated that due to dramatic changes in the industries structure and a new categorization in financial services (broadly described as IT-driven and HR-driven financial services) banks are perhaps standing at the start of a new internationalization cycle. The authors expect that banks will internationalize their business not only by more across-border co-operation modes, but also by the use of information technology. The development and distribution of a broad assortment of financial services (Bancassurance or All Finance) happens only in the retail market and will probably not take place in the wholesale market. The competitive battle will be on distribution channels, but having control over these channels does not automatically mean gaining a competitive advantage. Co-operation modes, like a strategic alliance, can be a very effective instrument to gain access to these distribution channels, but profitable exploitation only occurs when partners get round a number of pitfalls.