Consumer payments over open computer networks
The increasing prospects for large volumes of commerce taking place over open computer networks has created considerable interest in the security and technology of open computer network commerce. In this paper, we explain how the basic encryption technology for sending secure messages works, and how this technology can be used to create electronic payment instruments, including cash, credit card, and check payments. We also review briefly the necessary elements required to support encryption technology: (1) a certification authority, (2) mathematical complexity of the encryption formulas, (3) ...
Financial transactions and the demand for M1
Current labor market trends and inflation
Ongoing restructuring of retail banking
The largest U.S. commercial banks are currently in the process of restructuring their retail operations. This paper describes the innovations that are being adopted, explains the integrated strategies for restructuring, and reviews the policy issues that emerge. We find that banks are restructuring by developing complete customer-relationship profiles, switching over to remote electronic delivery channels (phone centers, home banking, and next-generation ATMs), relocating branches to large retail outlets, and redesigning selected branches as investment centers. The immediate goal of ...
The emerging role of banks in e-commerce
How is the banking industry responding to the rapid development of on-line commerce? Evidence suggests that many banks are beginning to deliver credit and deposit products electronically. In addition, some large banks are developing products designed exclusively for e-commerce. As banks venture into the electronic arena, however, they are finding that new opportunities bring new operational and strategic risks.
Exploring the effects of capital movements on M1 and the economy
Bank branches in supermarkets
The largest U.S. commercial banks are restructuring their retail operations to reduce the cost disadvantage resulting from a stagnant deposit base and stiffer competition. As part of this effort, some banks are opening "supermarket," or "in-store," branches: a new type of banking office within a large retail outlet. An alternative to the traditional bank office, the supermarket branch enables banks to improve the efficiency of the branch network and offer greater convenience to customers.