Internet Banking: Will this pig fly?
So far there's no world-beating example of an internet bank. Euromoney and the Centre for the Study of Financial Innovation (CSFI) decided to fill the gap in three easy stages. First, drafting the structure. Second, launching a virtual retail bank. Third, diversifying into all areas, to build a veritable Merrill Lynch of the ether. That's the theory. Here's what happened at stage one, as reported by David Shirreff.
Brian Smooth, consultant Wimsey & Co
Piers Bannister, lawyer, Bannister Hawley
Ron Doppler, security expert
Malcolm Fishmark, IT consultant
High Hedge Capital
Pegasus Bank doesn't yet exist, but when it does those pygmies that already operate in cyberspace will have to sharpen up. So will Barclays, Merrill Lynch and even the mighty Citibank. For Pegasus, dreamed up over wine and sandwiches at the City of London Club, is destined to become the world's first virtual virtual bank. No capital, no assets except its people (this is a people business), and no hidden time-bombs: the safest structure on earth.
To assist its creation, Euromoney and the CSFI (Centre for the Study of Financial Innovation) invented a game for 22 players and a handful of expert witnesses.