Banks’ Physical Footprint and Financial Technology Adoption
Year: 2024
Type: article
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.
Source: ERSA Working Paper Series
DOI: 10.71587/m3f3kr47
Authors: Mariani, Lucas A., Ornelas, José Renato H., Ricca, Bernardo
Institutions: University of Milano-Bicocca, Central Bank of Brazil, Insper
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W6921525283
FWCI:
Cites:
Cited by:
Related to: