GERMAN BANKS ACHIEVE SIGNIFICANT IMPROVEMENTS IN PROFITABILITY AND COST EFFICIENCY THROUGH BUSINESS PROCESS OUTSOURCING. THIS EFFECT STEMS FROM AN INCREASE IN REVENUES RATHER THAN FROM A REDUCTION OF THE BANKS’ WORKFORCE.
PEER-TO-PEER LENDING COMMUNITIES LIKE ZOPA, PROSPER, OR SMAVA ARE ONE OF THE MOST FASCINATING WEB 2.0 APPLICATIONS IN RETAIL BANKING. WE EXAMINE WHETHER THOSE COMMUNITIES ARE ABLE TO TAKE OVER THE FUNCTION OF BANKS IN CONSUMER LENDING.