The long-term effect of digital innovation on bank performance: An empirical study of SWIFT adoption in financial services
By Susan V. Scott, John Van Reenen, Markos Zachariadis. 2017
307 citations recorded by the source corpus.
We examine the impact on bank performance of the adoption of SWIFT, a network-based technological infrastructure and set of standards for worldwide interbank telecommunication. We construct a new longitudinal dataset of 6848 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) these profitability effects are 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.
Subfields: Information Systems, Media Technology, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/25e2e8b1300a4373b29d9985becd6080a7d9d688
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In Media Technology
In Strategy and Management
Citations in the corpus
- The Effects of Digital Transformation on Firm Performance: Evidence from China’s Manufacturing Sector (2021, background): “[26] concluded that the adoption of the SWIT network system is positively correlated with the long-term profitability of banks.”
- Do financial technology firms influence bank performance? (2020, background): “transformations, Scott et al. (2017) argue that it is the small firms that are more apt at adjusting”