Paper
Pensions, an International Journal (2002) 8, 63–78; doi:10.1057/palgrave.pm.5940215
The impact of e-commerce on UK financial services product providers and their intermediary relationships
Philip Aitchison1 and Merlin Stone2
Correspondence: Merlin Stone, IBM UK Ltd, 76 Upper Ground, South Bank, Mailpoint GSE 1, London SE1 9PZ, UK. Tel: +44 (0)20 7202 3000; Fax: +44 (0)20 7202 5887; e-mail: merlin_stone@uk.ibm.com
1is a former student at the Michael Smurfit Graduate Business School, University College, Dublin, and is now travelling.
2is Business Research Leader, IBM Business Innovation Services; IBM Professor of Relationship Marketing, Bristol Business School; and Director of QCI Ltd, Swallow Information Systems Ltd, The Database Group Ltd and ViewsCast Ltd, UK.
Revised 7 March 2002.
Abstract
The UK financial services sector is undergoing a period of profound change, including the advent of e-commerce, intermediary depolarisation, coupled with demographic changes and Government regulation. This paper explores the nature of these industry trends in relation to UK product-providers, mainly pensions and life assurance product-providers and their most important organisational stakeholder, the independent financial adviser (IFA). It discusses how this relationship has evolved to date and recommends how UK product providers might restructure their operations in light of the industry trends.
Keywords:
life insurance, pensions, distribution channels, independent financial advisors, stakehold pensions, 1% world, ageing population, advice, depolarisation, multi-channel distribution, e-commerce, Internet, business models
