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A new competitive landscape is emerging in financial services. Deregulation and the globalisation of finance are inaugurating industry-wide consolidation as companies merge to gain economies of scale, eliminate excess capacity, and cut costs.
At the same time, the industry's traditional integrated value chain is breaking apart, giving rise to a new generation of focused players that are attacking established companies at key points in the value chain. Moreover, unprecedented new developments associated with the Internet and electronic commerce are posing fundamental strategic challenges to traditional business models.
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