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Pest Analysis Virtual Banking

Table of Contents

1. PEST Macro-Analysis 2
1.1. Overview 2
Political Factors 2
Economical Factors 3
Social Factors 4
Technological Factors 4
PEST Macro Analysis Summary 5
Bibliography 6

 
1. PEST Macro-Analysis
1.1. Overview

The virtual banking industry was based primarily on the confidence of the users in the web-based banking technology and the authenticity of the virtual banks. The industry also projected constant changes to the regulations and technology which would define the technology acceptance by the general public.

Virtual banking services which had been deployed since 1980 by Bank ONE of Columbus, Ohio (Darlin 1997), had a tremendous growth since then to 1,130 banks deploying online banking services by 1999 (John Frank Yother (the university of Alabama) 2007). As such, Nexity would have an increase resistance from competitors and penetration into the virtual banking market would be difficult without providing a unique combination of technology or service to the virtual banking users.

This PEST analysis is conducted at a macro level to examine the technological advancements which would propel and prove viable for Nexity to launch into the Virtual Banking industry in the 21 century.

Political Factors

In 1999, Rep. Bob Goodlatte (R-VA), Rep. Zoe Lofgren (D-CA), and others sponsored and submitted a bill to congress to be reviewed so as to change the export controls on encryption software or tools which could be used globally or exported out of country (Encryption rights in the U.S., and encryption export restraints. 1999). This bill which eventually was approved in year 2000 would allow clients of virtual banks to transcend physical barriers to invest and maintain accounts in the U.S. without the fear for the security of their transactions or the need for physical presence either locally or while away from the U.S. This would also allow global U.S companies to conduct the banking through the internet from their branch...