Strategic online banking adoption

Ruben Hernandez-Murillo, Gerard Llobet and Roberto Fuentes

Journal of Banking & Finance, 2010, vol. 34, issue 7, 1650-1663

Abstract: In this paper we study the determinants of banks' decisions to adopt a transactional website for their customers. Using a panel of commercial banks in the United States for the period 2003-2006, we show that although bank-specific characteristics are important determinants of banks' adoption decisions, competition also plays a prominent role. The extent of competition is related to the geographic overlap of banks in different markets and their relative market share in terms of deposits. In particular, banks adopt online banking services earlier in markets where their competitors have already adopted this technology. This paper is one of the first to construct local banking markets using the geographic market definitions delimited by the CASSIDI® Database compiled at the Federal Reserve Bank of St. Louis.

Keywords: Duration; models; Technological; adoption; Online; banking; Competition (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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Related works:
Working Paper: Strategic Online-Banking Adoption (2008)
Working Paper: Strategic online-banking adoption (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:34:y:2010:i:7:p:1650-1663

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