The present situation of Internet banking and the directionality of the strategic utilization for theJapaneseBanking industry

Abstract

Japanese Internet banks are generally believed to be a low profit business model. The main Internetbanking strategies for the Japanese brick-and-mortar banks are just leading segmented low profitmass customers to use Internet banking, instead of branch channels. This paper examines theimportant meaning of the newly established Japanese Internet banks and also suggests the strategicdirection of Internet banking for the Japanese banking industry. Japanese customers, includingcorporate customers, will look for more sophisticated Internet banking channels.