EconPapers    
Economics at your fingertips  
 

The long-term effect of digital innovation on bank performance: An empirical study of SWIFT adoption in financial services

Susan V. Scott, John van Reenen () and Markos Zachariadis

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We examine the impact on bank performance of the adoption of SWIFT, a network-based technological infrastructure for worldwide interbank telecommunication. We construct a new longitudinal dataset of 6,848 banks in 29 countries in Europe and the Americas with the full history of adoption since SWIFT’s initial operations in 1977. Our results suggest that the adoption of SWIFT (i) has large effects on profitability in the long-term; (ii) is greater for small than for large banks; and (iii) exhibits significant network effects on performance. We use an in-depth field study to better understand the mechanisms underlying the effects on profitability.

Keywords: Technology adoption; bank performance; financial services; network innovation; SWIFT (search for similar items in EconPapers)
JEL-codes: F3 G3 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-eff, nep-his, nep-pay and nep-tid
Date: 2017-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://eprints.lse.ac.uk/83641/ Open access version. (application/pdf)

Related works:
Journal Article: The long-term effect of digital innovation on bank performance: An empirical study of SWIFT adoption in financial services (2017) Downloads
Working Paper: The long-term effect of digital innovation on bank performance: an empirical study of SWIFT adoption in financial services (2017) Downloads
Working Paper: The Long-Term Effect of Digital Innovation on Bank Performance: An Empirical Study of SWIFT Adoption in Financial Services (2010) Downloads
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:ehl:lserod:83641

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().

 
Page updated 2019-11-28
Handle: RePEc:ehl:lserod:83641