1 / 22

Frankfurt, 11 th November 2004

Making finance mobile. Frankfurt, 11 th November 2004. Prof. Dr. Wolfgang König E-Finace Lab at the Goethe University Institute for Information Systems. Jan Muntermann Alerting Notifications – Benefits for Mobile Investors Chair of M-Commerce Goethe University Frankfurt. Agenda.

everly
Download Presentation

Frankfurt, 11 th November 2004

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Making finance mobile Frankfurt, 11th November 2004 Prof. Dr. Wolfgang König E-Finace Lab at the Goethe University Institute for Information Systems Jan MuntermannAlerting Notifications – Benefits for Mobile InvestorsChair of M-Commerce Goethe University Frankfurt

  2. Agenda • E-Finance Lab at the Goethe University • Introduction of Mobile Alerting Services • Empirical Evidence • Suitable Mobile Information Infrastructures • Summary & Conclusion

  3. E-Finance Lab-Prof. Dr. Wolfgang König-Chairman of the Board

  4. Partners: Leading Corporations of the Financial Service Sector E-Finance Lab http://www.efinancelab.de

  5. Focused Research Areas 2004 E-Finance Lab http://www.efinancelab.de

  6. Agenda • E-Finance Lab at the Goethe University • Introduction of Mobile Alerting Services • Empirical Evidence • Suitable Mobile Information Infrastructures • Summary & Conclusion

  7. Introduction Mobile Banking in the past • Mobile Banking/Broking were expected to be one of the „killer applications“ for mobile commerce in the past [Durlacher 1999; Ericsson 2001] Problems: • Mobile banking solution were mainly reproduction of already existing web-based applications but with fewer functionality. • Low bandwidth • High communication costs • Low functionality

  8. Mobile Banking today Problems solved: • Fast data services (GPRS/UMTS) • Low data transfer costs (e.g. flat rates) • More functionality possible (new devices with better displays and browser functionality) New mobile banking applications make use of mobile aspects in order to diversify from existing web-based solutions and to provide additional value.

  9. E.g. alerting services: • Minimum balances reached • Deposits made • Trades executed • These proactive and “simple” alerting services reduce call center costs up to 70-90 % (25c vs. $2.77 averaged) [JupiterResearch 2004] • But: Existing Mobile Brokerage services are still in a ‘primitive’ statefocusing mainly on costreduction. Are there any mobile brokerage application domains providing addition value (which may generate access to new business segments)?

  10. The German Securities Trading Law, §15 (WpHG) regulates that stock price relevant company news have to be published via so-called ad hoc disclosures immediately, e.g: [Ad hoc Disclosure published by Mensch & Maschine AG on 2004-06-21 12:23]

  11. CDAX Performance Index N These disclosures cause price reactions on the capital market Mensch & Maschine intraday stock price development 2004-06-21 on Xetra Publication date of the Ad hoc Disclosure: 14:06 Price reaction seemingly induced by disclosure

  12. Introduction • Questions: How to prove that mobile alerting services can utilize these price effects? • Can these price effects be proven? • What is the respective time frame? • How can a suitable mobile notification infrastructure be designed?

  13. Agenda • E-Finance Lab at the Goethe University • Introduction of Mobile Alerting Services • Empirical Evidence • Suitable Mobile Information Infrastructures • Summary & Conclusion

  14. CDAX Performance Index N Abnormal return* AR13:00~1% ri – 0% rCDAX =1% Potential price reaction (cumulated): ~3% Price effect analysis How does the market perform? Is this potential reaction only a market trend? Publication date of an ad hoc disclosure: 12:23 * corrected by an average abnormal absolute return in a 2nd step

  15. Price Effect Significance • Significant abnormal returns can be proven for the first 5 ticks (=price fixings on a minute basis) following the announcement. • A suitable mobile alerting service would have to inform the investor within this timeframe.

  16. Price Effect Duration(After how many minutes are these price effects completed?) percent minutes Time conversion of the first five price fixings (n=213)

  17. Agenda • E-Finance Lab at the Goethe University • Introduction of Mobile Alerting Services • Empirical Evidence • Suitable Mobile Information Infrastructures • Summary & Conclusion

  18. Notification Scenario • The investor holds stocks of company XY. • Company XY publishes an ad hoc disclosure at 2004-06-20 at 10:23 am. • This event causes an alerting notification to be initiated.

  19. Notification Infrastructure 1.5 5

  20. Agenda • E-Finance Lab at the Goethe University • Introduction of Mobile Alerting Services • Empirical Evidence • Suitable Mobile Information Infrastructures • Summary & Conclusion

  21. Summary & Conclusion • The existence of significant short-term price effects following company announcements opens a window of opportunity for non-institutional investors. • Appropriate mobile alerting services can provide benefits for investors AND service providers. • The push/pull service WAP Push Indication (SI) combines prompt notification delivery and the processing of message meta data (e.g. priority levels).

  22. Thank you for paying attention!Prof. Dr. Wolfgang Königkoenig@efinancelab.com www.efinancelab.comJan Muntermannjan@whatismobile.de www.whatismobile.de

More Related