Development of an e-procurement model for global financial institutions

Today, banking firms are heavily affected by the development of electronic commerce (e-commerce) and the internet has had a profound impact on the distribution of non-physical services. Nevertheless, it is believed that banking firms can take advantage of this opportunity to reduce their operating costs and increase revenues. Because of the dramatic increase of competition in this business sector caused by the emergence of internet banking firms, investment consultancy firms, etc. the non-physical nature of the bank's products mean that the whole e-commerce process can be speeded up. The growing popularity of e-commerce and the rapid advances in the development of technology for communications has had a major impact on the traditional procurement process. This article presents different points of view on how a company can move from a paper-based to a digital-based process, how the e-procurement system compares with the traditional methods of operation and how it can add value to the whole organisation. Using the concept and design of the business model created for this article, the main principles and process for achieving these aims will be discussed, covering all aspects of the treatment of information, from data collection to information interpretation and the implementation of the procurement system.