The Effect of Banks' IT Investments on the Digitalization of their Customers

Banks all over the world are investing in new banking technologies at a time when bank customers are progressively going digital in several dimensions of their economic and social interactions. Together with their existing perceptions of digital services, new banking technologies may path the way to...

Full description

Saved in:
Bibliographic Details
Published in:Global policy 2020-01, Vol.11 (S1), p.9-17
Main Authors: Carbó‐Valverde, Santiago, Cuadros‐Solas, Pedro J., Rodríguez‐Fernández, Francisco
Format: Article
Language:English
Subjects:
Adoption of innovations
Banking
Banking industry
Banks
Customers
Digitization
Financial services
Investments
Productivity
Relationship banking
Social factors
Social interaction
Social interactions
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Banks all over the world are investing in new banking technologies at a time when bank customers are progressively going digital in several dimensions of their economic and social interactions. Together with their existing perceptions of digital services, new banking technologies may path the way to accelerate the digitalization of bank customers, thereby achieving private and social efficiency gains. This paper exploits the fact that banks’ IT investments are mostly allocated to digital technologies to examine if such investments affect the digitalization of bank customers. The results show that banks’ IT investments have a significant positive impact on the adoption of financial digitalization by customers. Banks’ IT investments also increase the likelihood that bank customers undertake their financial transactions through digital channels rather than in the physical branch. This represents a change in the relationship banking channel. These findings shed light on the impact of banks’ IT investments on end‐users and not just on bank productivity and efficiency. Policy makers should assist banks in helping their customers to go digital, but they must ensure that the highest level of security is guaranteed in order to protect consumers from privacy violations and digital fraud.
ISSN:1758-5880
1758-5899
DOI:10.1111/1758-5899.12749