| Internet portals dedicated to retail investing abound, while electronic trading systems have attracted institutions investing in equities, bonds, and derivative products. Corporate treasurers and portfolio managers will now also benefit from electronic markets that enable them to filter their investment choices and ease their decision making. At the same time, investment banks are devoting a large portion of their technology spending to electronic commerce, recognizing its importance to their future. Integral's CFOWeb.com provides a solution for both the investors and banks. They will reap the benefits of Integral's early entry into e-commerce for this market, but at the same time face substantial obstacles in getting there.
Although investors will profit from the advantages of multiple providers, access to inexpensive analytics, and market transparency, they must overcome their sensitivities to placing large transactions online. In addition, the scope of financial products initially offered by providers includes complex swaps and currencies, where traditional brokers and banks have valued expertise, discouraging investors from online investing. TowerGroup believes that these corporate treasurers will adopt the CFOWeb.com technology slowly before committing to its use on a large scale.
Investment banks gain quick access to Internet distribution targeted at a specific market segment. This is an invaluable tool for many small and midsize banks that typically lag their larger competitors in this area. Similarly, investment banks that have committed large amounts of financing to electronic commerce will not participate as readily.
Integral's CFOWeb.com is an innovative product in a very progressive market. While it will predictably encounter the typical obstacles faced by early entrants and "dot coms," such as credibility and Web site traffic, the industry will steadily become more comfortable with its benefits.
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