Digital disruption and market structure: the case of internet banking

Lyons, B. and Zhu, M. ORCID: https://orcid.org/0000-0001-6687-3267 (2024) Digital disruption and market structure: the case of internet banking. Industrial and Corporate Change. ISSN 1464-3650 doi: 10.1093/icc/dtae013

Abstract/Summary

We provide an econometric study of the adoption of internet banking, a case of a potentially disruptive digital technology which could devalue/replace incumbent legacy. Our aim is to better understand the extent to which it disrupted market structure where incumbents start with a strong customer base. We study both regional integration and national concentration dimensions of market structure in EU member states during the period of 1997-2018. We find that internet banking was initially introduced earlier in more concentrated markets. Although consumer uptake was then slower over time than in less concentrated markets, the initial higher consumer penetration in more concentrated markets was sustained until market maturity. We further find a substantial de-concentrating effect of internet banking, and evidence of integration in previously regionalised markets following uptake.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/115147
Identification Number/DOI	10.1093/icc/dtae013
Refereed	Yes
Divisions	Arts, Humanities and Social Science > School of Politics, Economics and International Relations > Economics
Uncontrolled Keywords	Digital Disruption, Internet Banking, Endogenous Market Structure, Market Integration
Publisher	Oxford University Press
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