Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of Atlanta
FRB Atlanta Working Paper
Technological change, financial innovation, and diffusion in banking
W. Scott Frame
Lawrence J. White
Abstract

This paper discusses the technological change and financial innovation that commercial banking has experienced during the past twenty-five years. The paper first describes the role of the financial system in economies and how technological change and financial innovation can improve social welfare. We then survey the literature relating to several specific financial innovations, which we define as new products or services, production processes, or organizational forms. We find that the past quarter century has been a period of substantial change in terms of banking products, services, and production technologies. Moreover, while much effort has been devoted to understanding the characteristics of users and adopters of financial innovations and the attendant welfare implications, we still know little about how and why financial innovations are initially developed.


Download Full text
Cite this item
W. Scott Frame & Lawrence J. White, Technological change, financial innovation, and diffusion in banking, Federal Reserve Bank of Atlanta, FRB Atlanta Working Paper 2009-10, 2009.
More from this series
JEL Classification:
Subject headings:
Keywords: Technological innovations
For corrections, contact Elaine Clokey ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal