Banks’ Physical Footprint and Financial Technology Adoption

Lucas A. Mariani (), José Renato H. Ornelas () and Bernardo Ricca ()
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Lucas A. Mariani: Università degli Studi di Milano Bicocca
José Renato H. Ornelas: Banco Central do Brasil Università
Bernardo Ricca: Insper

No 26, ERSA Working Paper Series from Economic Research Southern Africa

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)
JEL-codes: E42 E51 G20 O33 (search for similar items in EconPapers)
Date: 2024-08
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Published in ERSA Working Paper Series, August 2024

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