Abstract
OSGLO03Financial institutions cannot isolate themselves from the trend toward globalization. Willingly or unwillingly, banks are being forced to move toward worldwide operation. One of the most compelling reasons for this change is the enormous potential of global transactions, whereby banks can offer services and credit facilities worldwide, tailored to customers regardless of where they are based. Global scope in transactions is necessary in order to offer effective worldwide services, resulting in a higher profitability for the bank on one hand and closer relations between the bank and customers on the other. This is not only the case for financial institutions; worldwide operations and, specifically, global financial transactions are a necessity for any company wanting to address a global market. Global transactions reduce transaction costs and add value in efficient and innovative ways. However, the variations among national markets present obstacles as well as opportunities to companies attempting to iogo global.ln This paper defines global financial transactions from a business perspective, leading to a framework for developing a new geographically distributed business model. This model describes the division of labor between national and supranational organizations. Between the ideal of globalization and the realities of national markets, an equilibrium must be found in which communication and coordination mechanisms across national boundaries play crucial roles. Efficient information access, management and processing facilitate operation on a global scale.