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
LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library
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
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)
Journal Article: The long-term effect of digital innovation on bank performance: An empirical study of SWIFT adoption in financial services (2017)
Working Paper: The long-term effect of digital innovation on bank performance: an empirical study of SWIFT adoption in financial services (2017)
Working Paper: The Long-Term Effect of Digital Innovation on Bank Performance: An Empirical Study of SWIFT Adoption in Financial Services (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
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 ().