The main differences in the banking/insurance sector between SMEs and large establishments 

have to do with concerns regarding security (Figure 5). While SMEs are more concerned about 

security problems accompanying online activities, large establishments seem to be more 

venturesome or more equipped to handle the possible risks, based on sophisticated security 

mechanisms such as authentication by using PIN/TAN procedures or HBCI together with 

firewalls and intrusion detection methods. Again, the low prevalence of credit cards is viewed as 

a barrier by large establishments, while SMEs do not share this perception as strongly. It is 

difficult to interpret these differences, but possibly SMEs are not as informed about the benefits 

of e commerce or aware of the necessity to  be online  as large establishments. Another reason 

is that most credit cards are issued by large business banks rather than by small savings and loan 

banks. The usage of credit cards is therefore more important for large banks to generate revenue. 

Differences also occur in the field of organization change. The banking and insurance sector 

believes that its organization structure is better prepared on average to implement e commerce 

successfully among all firms investigated. This self assessment runs counter to the observable 

organizational difficulties today in the banking sector in Germany. 

FIGURE 5  Main Barriers of Doing Business Online in the Banking and Insurance Industry

4

All industries

SME

Large

3.5

3

2.5

2

1.5

Need for 

Concerns 

Customers do  Finding staff 

Prevalence of 

Costs of 

Organizational Our own level 

customer face 

about data 

not support 

with e 

credit card use implementing 

 changes 

of ability to 

to face 

security

this technology

commerce 

e commerce

needed

use the 

interaction

expertise

internet for 

business

Source. CRITO Global E Commerce Survey, 2002; sample weighted by the total number of establishments. 

DIFFUSION OF E COMMERCE 

The macroeconomic benefits of IT are already apparent in Germany, accompanied by the 

increasing usage of a great variety of ICT and e commerce technologies. In spite of the current 

slowdown in ICT investments, following overinvestment and the so called bubble burst, the 

long term benefits and structural IT related business improvements are likely to continue or even 

increase in the years to come. As a country with a relatively low ICT hardware production 

industry, Germany benefits as an importer from the falling prices of ICT goods. Although 

German industry has adopted and integrated e commerce technologies in all areas of business 

processes, it was not able to increase the productivity factor in the same way as other countries in 

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