Internationalization strategies for financial services
Internationalization is a broad term. It goes beyond the basic notions of trade and exporting to encompass all aspects of business activity that extend beyond national borders. Exporting is often thought of as simply the first stage in this process, which can extend to the establishment of a fully-fledged business presence in an overseas market. Most discussions of service marketing, including those relating to financial services, tend to focus on marketing in a domestic context. Equally, most textbooks on international strategy and marketing tend to focus predominantly on the activities and issues associated with companies providing physical goods. Yet services account for an increasingly large share of world trade, and there is a long tradition of international activity within the financial services sector. World Trade Organization figures suggest, that in 2003, services accounted for some 20 per cent
By the end of this chapter you will be able to: ● identify key drivers of internationalization in the financial services sector ● understand the factors influencing the choice of internationalization
strategy ● identify the marketing implications associated with internationalization.