If you're interested in what makes virtual banking successful and in the effect of the Internet on financial markets, Krishnan Dandapani, professor of finance in the College of Business Administration, might have some answers for you. He has spent the last five years undertaking serious inquiries into the evolution of Internet financial services. Supported by a $10,000 grant from the College's Knight-Ridder Center for Excellence in Management, he has had the funding to produce publications, conference presentations, and significant case studies in this special area of research.

   In particular, his article entitled "Success and Failure in Web-based Financial Services," published in the May 2004 issue of Communications of the ACM, examines the financial viability of virtual banking business models.

   "Out of more than forty purely Internet banks operating in 1998, fewer than five exist today," Dandapani said.

   

Krishnan Dandapani

Why? In his study, Dandapani concludes that virtual banks have tended not to survive because they were based on a flawed business model that assumed low-cost efficiency would yield a lower burden. In his research, he discovered that, despite an optMIStic financial model and the growth of the Internet, virtual banks out-competed each other and fell short against e-banking operations offered by brick-and-mortar banks. Virtual banks' operational and administrative costs became extremely high, and Internet banking alone satisfied only a small niche of society. While many virtual banks failed to sustain their costly operations, brick-and-mortar institutions successfully launched e-banking channels.

   "People need multiple channel access," Dandapani said. "Brick-and-mortar banks give people choices, be it Internet banking, counter service, or ATM service."

   He said that established financial institutions are able to satisfy the customer in ways in which virtual banks are not. Brick-and-mortar banks have the luxury of exploring e-banking options because they already possess a solid, physical infrastructure and dedicated client base.

   Dandapani is continuing to examine issues affecting e-financial services. Among the most critical problems affecting Internet banking today is identity theft and the fact that sufficiently secure encryption architecture has yet to be developed. He believes that security issues will need to be resolved before completely Internet-based banking can flourish. The e-business industry currently is working towards implementing a biometric system using fingerprints and retinas as identity markers. The focus then will turn to the issue of privacy vs. protection.

FOCUS ON

.: Business Alumni Chapter holds Valentine's Mixer at Chispa's in February.

Photo from left to right: Martin Bermudez (BBA '97), Terry Quintana, Erica Gjorven (BS '01) and Hernan Vera (MBA '90).

.: Business Alumni Chapter Board nominations close March 11th.

   Are you an alumnus/ae interested in becoming involved with the College of Business Administration? If so, the Business Alumni Chapter may be an ideal way for you to do that. The Business Alumni Chapter currently is accepting nominations for its 2005-2006 Board of Directors. The organization is dedicated to building and maintaining strong bonds between all of Florida International University's business alumni. The Business Alumni Chapter holds regular events, including lectures featuring executive speakers, networking events, alumni mixers, and community service projects.

   Board members for 2005-2006 will help increase the Chapter's visibilty throughout the community as well as build Chapter membership. For a list of board positions and respective duties and to nominate yourself or someone you know, please visit our web site.

.: 2005 Entrepreneurship Hall of Fame Luncheon to take place May 12th.

   Mark your calendars! The 2005 Entrepreneurship Hall of Fame Luncheon and Induction Ceremony will be held Thursday, May 12th at The Parrot Jungle, 1111 Parrot Jungle Trail (Watson Trail). Join the College of Business Administration as we celebrate our ongoing commitment to entrepreneurship and honor our best. Inductees into the Entrepreneurship Hall of Fame will be Agustin "Tino" Herran (BBA '91), president of Sedanos Supermarket/president of General Real Estate Corporation, and Larry Harris (BS '81), founder of Pollo Tropical and chairman and CEO of New Spanish Concepts, LLC. The 2005 South Florida Entrepreneur(s) of the Year award will be presented to Jorge de Cespedes and Carlos de Cespedes, founders of the Pharmed Group, and a special Lifetime Achievement Award will be given to Dr. Sandford Ziff, founder of Sunglass Hut/CEO Ziff Plaza Associates. The event also will recognize winners of the Howard J. Leonhardt New Venture Challenge, a student business plan competition.

   The Entrepreneurship Hall of Fame is the College's largest event each year, with more than 500 attendees. It offers a great opportunity to reconnect with other business alumni and to network with business professionals in our community. Register to attend at our web site.

.: College welcomes its newest Alumni Circle members.

   The Alumni Circle is a group of senior-level alumni who work closely with the College's administrators and deans to develop programs and initiatives to achieve the College's goals. Joining the Circle recently are Miguel A. Horvath, Jr. (BBA '02), financial advisor for American Express Financial Advisors, and Howard Mark Shore (BA '91), partner of Elite Advisory Group, Inc. Returning members to whom we owe special thanks are Michael Gibaldi (BBA '84), regional manager, Business Wire Florida; Daniel Linares (BA '93, MBA '98), vice president, Financial Sales, Wachovia Bank, NA; Miguel Rabay (BA '81), president and CEO of E-Global Navigators. Josie Carreño (MBA '99); Gus Vidaurreta (BS '80); Alfredo Cepero (BAcc '88, MAcc '90); and Rich Danze (MBA '03).

.: College's VITA volunteers are busy again this tax season.

    Associate Professor of Accounting David Lavin is in charge again this year of the College's Volunteer Income Tax Assistance (VITA) program, which was established by the Internal Revenue Service. The program's student volunteers help low-income earners complete their tax forms at different sites across Miami-Dade County.

   "The program has been more successful this year than ever before," Lavin said.

   

David Lavin

He trained more than 120 students in November and January to prepare for this year's tax season. Shirley Quintana, program coordinator, helped him prepare the training for this year's volunteers. Training included instructing students about how to use the software program "TaxWise" and how to prepare the various tax forms. On January 23, they began a new training cycle, with sessions on Wednesdays and Saturdays at Navarro's on Southwest 8th Street and 122nd Avenue.

   To date, student volunteers have worked at locations across Miami-Dade County, going beyond their usual stomping grounds of Navarro's Pharmacy to the Coral Way Homeless Assistance Center, the Orange Bowl, Corpus Christi, and several facilities in the neighborhoods of Allapattah and Little Haiti.

   Lavin said he is very pleased with the accounting students' serious commitment to serving their community. "There was a huge turnout at the Orange Bowl," he said. "Even so, we had so many volunteers that they couldn't use everyone." No matter how great the need, the College's VITA team will be there to aid low income citizens in filing their taxes this year.

.: Chapman Graduate School plans to open Downtown Campus.

  The Chapman Graduate School is in the final phase of negotiations to open a downtown Miami campus on the sixth floor of the Macy's building at East Flagler St. in newly-renovated, state-of-the-art classrooms. The initial curriculum will cater to students needing pre-requisite course work for pursuing an MBA. Beginning in August 2005, it will offer a Downtown MBA program for those who already have fulfilled the entry requirements. This cohorted, lock-step program will meet two weeknights every week for 18 months.

  "Our research showed that people who work in the downtown area would prefer to study close to work," said Luis Casas, Chapman's director of marketing and corporate relations. "By offering this program in the evening, people will be able to attend classes during rush hour and then leave after classes, when there is less traffic."

  He said the program also will cater to students who work in other areas near downtown, east of the Palmetto Expressway, such as Coral Gables.

  "Recruitment is going very well," Program Manager Lourdes Herrero-Matus said. "The program will fill a need in the downtown area, allowing students to earn an MBA from the Chapman School just minutes away from their offices."

  For more information, contact Lourdes Herrero-Matus.

.: Students and real estate professionals convene in Career Forum.

   More than 80 students filled the University Faculty Club for the Third Real Estate Career Forum on Monday, February 14, from 4:00-6:00 p.m.

   Hosted again by the Florida International Real Estate Alumni Council and the Real Estate Student Association (RESA), the Forum was sponsored by the Jerome Bain Real Estate Institute in partnership with the Realtor Association of Greater Miami and the Beaches.

   The Forum featured industry panelists who discussed various subjects relevant to those interested in pursuing a career in real estate—topics like property management and leasing, commercial brokerage, appraisal, residential brokerage, and finance. Students also participated in a networking reception at the conclusion of the evening in which they were able to further explore the issues presented by the panelists and learn more about their careers and corporations.

   John Zdanowicz, professor of finance and director of the Jerome Bain Real Estate Institute, welcomed the audience to the gathering.

   Alex Zylberglait, adjunct professor of real estate finance and investment and sales associate in the Fort Lauderdale office of Marcus and Millichap, presented the invocation and pledge. Patricia Birch (BBA '02) moderated the panel. Birch is principal at Gallaher & Birch, formerly Hedgpeth & Gallaher, Inc., a full-service appraisal firm working on all types of real estate—from single family homes to hotels. She serves as a Governor's appointee on the Florida Real Estate Appraisal Board. The panel also featured Kimberly Kirschner, CEO of Kirschner Realty International, Inc.; Rod Castan, director of leasing for the Courtelis Company; Glenn Johnston, a member of the Appraisal Institute (MAI) and real estate appraiser and consultant with Slack, Johnston & Magenheimer, Inc., who also serves on the Jerome Bain Real Estate Institute Advisory Board; Michael Leonard, group vice president for commercial real estate lending at Regions Bank, and Tere Blanca de Ulloa, senior managing director at Cushman and Wakefield of Florida.

.: Strategic Market Orientation empowers business execs with innovative strategies.

   The Office of Executive Education offered its Strategic Market Orientation (SMO) seminar from January 24-28 at University Park. Sixteen executives from the U.S. and Latin America took part in the week-long market simulation conducted by David Weinstein, visiting Ryder Eminent Scholar in marketing, and Walfried Lassar, SunTrust associate professor of marketing. Seminar participants represented companies that included American Express, DHL, ExxonMobil, Hewlett Packard, and Ryder Systems.

   The seminar centered on INDUSTRAT, a technology-enabled learning method co-created by Professor Weinstein for INSEAD, which allows participants to simulate companies' real-life competitive and market scenarios. The curriculum incorporates classroom teaching and hands-on learning experiences by separating the executives into four teams, or "companies," which compete against each other over a simulated seven-year run.

   "It went extremely well," said Erica Gjorven, who coordinated the seminar. "All of our participants were very excited to have other members of their corporations attend future seminars."

   She added that eight already have signed on for the next SMO, which will be held May 16-20. For additional information, please contact Erica Gjorven.

.: Upcoming professional education certificate programs focus on developing leadership.

   The College's Office of Professional Education's programs to help business professionals develop their managerial and leadership skills are slated to start in March. Three of these sure to attract interest are the Purchasing Manager Certification program, the Developing a Leadership Mindset Professional Certificate program, and the Leadership for Decision Makers Professional Certificate program.

   "The courses prepare professionals for today's fast-paced, changing business world by providing highly-focused, real-life learning experiences with immediate practical application," said Vince Daniels, director of business development.

   The Certified Purchasing Manager Certification program, part of a series of general management programs, will be offered in eight sessions on Monday evenings from 6:00-9:00 p.m., March through May 2005, at University Park. The Certified Purchasing Manager (CPM) designation is the most recognized accreditation for supply chain management professionals. The course is intended for experienced managers and concentrates on developing their managerial and leadership skills. To compete in today's environment, supply chain managers must learn to think strategically, broaden their perspectives, and view themselves as service providers.

   The Developing a Leadership Mindset Professional Certificate program will be offered on February 25, from 9:00 a.m. - 4:00 p.m., at University Park. The one-day program explores how managers and supervisors can maintain technical expertise and remain responsible supervisors. It provides participants with personal, interpersonal, and group skills to become effective leaders and to enable them to empower themselves and their staffs to accomplish organizational objectives.

   The Leadership for Decision Makers Professional Certificate course was designed by Yale University's Victor Vroom, one of the world's foremost experts on leadership. Participants will use Vroom's model to determine how to maximize their decisions at work. They will receive detailed feedback so they can examine their own styles and maximize the benefits of involving their employees in business decisions. Sherry Moss, associate professor of management and international business, will teach the class on Friday, March 11 from 9:00 a.m.- 4:00 p.m., at University Park.

   For more information on these and additional program offerings, please visit the Office of Professional Education's (OPE) web site.