Keywords: Technological progress, productivity, banks, mergers, efficiency
Abstract: This paper examines technological progress and its effects in the
banking industry. Banks are intensive users of both IT and financial
technologies, and have a wealth of data available that may be helpful
for the general understanding of the effects of technological change.
The research suggests improvements in costs and lending capacity due
to improvements in "back-office" technologies, as well as consumer
benefits from improved "front-office" technologies. The research also
suggests significant overall productivity increases in terms of
improved quality and variety of banking services. In addition, the
research indicates that technological progress likely helped
facilitate consolidation of the industry.
Full paper (315 KB PDF)
Home | FEDS | List of 2002 FEDS papers
To comment on this site, please fill out our feedback form.
Last update: October 21, 2002