Banks’ Physical Footprint and Financial Technology Adoption

Lucas A. Mariani (), José Renato H. Ornelas () and Bernardo Ricca ()

ERSA Working Paper Series, 2023

Abstract: Do physical bank branches moderate the diffusion of digital payment technologies? Does the diffusion of an efficient and inclusive digital payment technology allow fintechs to increase their presence? To answer these questions, we leverage bank heists that use explosives and render branches temporarily inoperable. We provide evidence that these attacks are not associated with local crime trends and that they deplete the branches’ cash inventory. Moreover, we show that they lead to persistent increases in digital payments usage and that a smaller cash dependence boosts digital institutions’ growth not only in payments but also in credit markets.

Keywords: Banking; Technology adoption; Payment methods (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ersawps.org/index.php/working-paper-series/article/view/26/7 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rza:ersawp:v::y:2023:i::id:26

Access Statistics for this article

ERSA Working Paper Series is currently edited by Guangling Liu

More articles in ERSA Working Paper Series from Economic Research Southern Africa
Bibliographic data for series maintained by Maggi Sigg ().