Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

In search for the best alliance structure between banks and insurance companies

24.02.2006


Banks and insurance companies have widely recognized the need for mutual co-operation in the form of cross-sector alliances. In these articles we study the problem of finding the most suitable alliance structure between banks and insurance companies from the points of view of executive management, supervisory authorities and customers. We also study possible compromise alliance models for several decision maker groups and a group’s understanding of other groups’ decisions.



In the first article we study alliances between banks and insurance companies from the perspective of the top management. We define six different structural models for financial alliances. We also characterize nine criteria according to which the previously defined models are to be compared to achieve the most attractive alliance model. Thus, we obtain a multi-criteria decision problem.

In the second article we solve the problem of searching the most preferred alliance model by using an expert panel and the Analytic Hierarchy Process (AHP). The experts are representatives of the top management of Finnish banks and insurance companies. Based on the evaluations of the panel, the alternatives Financial Conglomerate and Cross-Selling Agreement, no Overlapping Service Channels are most preferred. Which one is chosen, depends on how risk is emphasized.


In the third article we look for the best alliance compromise structure between the executives and the bank and insurance supervisory authorities in Finland. First, we study alternative alliance structures from the point of view of supervisors. We introduce eight criteria for the evaluation of the alternative alliance structures. The evaluation is carried out by an expert panel consisting of supervisory authorities. The alliance models based on plain cross-selling agreements receive the highest ranks. The financial conglomerate might be an acceptable compromise alternative for the supervisory authorities as well on certain conditions.

In the fourth article we study alternative alliance structures from the point of view of Finnish customer representatives. Seven criteria are introduced for the evaluation of the models. The evaluation is carried out by an expert panel consisting of customer representatives. The alliance models based on cross-selling agreements receive the highest ranks. The customer representatives then evaluate the models using the most important executive and supervisory criteria from our earlier studies. They also invent executive and supervisory criteria. It is more difficult for them to assume supervisory than executive thinking. Finally, we compare the criteria and the model priorities of this and our earlier articles. The best compromise model from all three points of view could be the financial conglomerate on certain conditions.

Terhi Ollikainen | alfa
Further information:
http://helecon3.hkkk.fi/diss/

More articles from Business and Finance:

nachricht Microtechnology industry is hiring – positive developments of past years continue
09.04.2018 | IVAM Fachverband für Mikrotechnik

nachricht RWI/ISL-Container Throughput Index with minor decline on a high overall level
20.03.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Future electronic components to be printed like newspapers

A new manufacturing technique uses a process similar to newspaper printing to form smoother and more flexible metals for making ultrafast electronic devices.

The low-cost process, developed by Purdue University researchers, combines tools already used in industry for manufacturing metals on a large scale, but uses...

Im Focus: First evidence on the source of extragalactic particles

For the first time ever, scientists have determined the cosmic origin of highest-energy neutrinos. A research group led by IceCube scientist Elisa Resconi, spokesperson of the Collaborative Research Center SFB1258 at the Technical University of Munich (TUM), provides an important piece of evidence that the particles detected by the IceCube neutrino telescope at the South Pole originate from a galaxy four billion light-years away from Earth.

To rule out other origins with certainty, the team led by neutrino physicist Elisa Resconi from the Technical University of Munich and multi-wavelength...

Im Focus: Magnetic vortices: Two independent magnetic skyrmion phases discovered in a single material

For the first time a team of researchers have discovered two different phases of magnetic skyrmions in a single material. Physicists of the Technical Universities of Munich and Dresden and the University of Cologne can now better study and understand the properties of these magnetic structures, which are important for both basic research and applications.

Whirlpools are an everyday experience in a bath tub: When the water is drained a circular vortex is formed. Typically, such whirls are rather stable. Similar...

Im Focus: Breaking the bond: To take part or not?

Physicists working with Roland Wester at the University of Innsbruck have investigated if and how chemical reactions can be influenced by targeted vibrational excitation of the reactants. They were able to demonstrate that excitation with a laser beam does not affect the efficiency of a chemical exchange reaction and that the excited molecular group acts only as a spectator in the reaction.

A frequently used reaction in organic chemistry is nucleophilic substitution. It plays, for example, an important role in in the synthesis of new chemical...

Im Focus: New 2D Spectroscopy Methods

Optical spectroscopy allows investigating the energy structure and dynamic properties of complex quantum systems. Researchers from the University of Würzburg present two new approaches of coherent two-dimensional spectroscopy.

"Put an excitation into the system and observe how it evolves." According to physicist Professor Tobias Brixner, this is the credo of optical spectroscopy....

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

Leading experts in Diabetes, Metabolism and Biomedical Engineering discuss Precision Medicine

13.07.2018 | Event News

Conference on Laser Polishing – LaP: Fine Tuning for Surfaces

12.07.2018 | Event News

11th European Wood-based Panel Symposium 2018: Meeting point for the wood-based materials industry

03.07.2018 | Event News

 
Latest News

A smart safe rechargeable zinc ion battery based on sol-gel transition electrolytes

20.07.2018 | Power and Electrical Engineering

Reversing cause and effect is no trouble for quantum computers

20.07.2018 | Information Technology

Princeton-UPenn research team finds physics treasure hidden in a wallpaper pattern

20.07.2018 | Materials Sciences

VideoLinks
Science & Research
Overview of more VideoLinks >>>