Emergence and Evolution of Proprietary ATM Networks in the UK, 1967-2000
AbstractThrough archival research we investigate the impact of the introduction of Automated Teller Machines (ATM) in British retail banking. Contrary to the experience in the US, in the UK the ATM has been largely neglected by historians and management scholars. Technologically, cash dispensers preceded ATM and were originally a British innovation but U.S. (e.g. IBM and NCR) and German manufacturers (e.g. Siemens) took the lead as the ATM became a global technology. The evolution of the ATM illustrates how banks adopted on-line, real-time computing for the entire branch network and highlights the role of network externalities in financial markets. From a business history perspective, the ATM epitomises a shift in bank strategy, namely how applications of computer technology moved from being potential sources of competitive advantage to being a minimum requirement for effective competition in retail finance. Research in this article traces the origins of this process of competitive change in British retail financial markets, by looking at the emergence of proprietary networks and their evolution into a single national network at the same time that cash dispensers transformed into ATM.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 3689.
Date of creation: Jun 2007
Date of revision:
Automated Teller Machines; UK; clearing banks; network effects;
Find related papers by JEL classification:
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- N24 - Economic History - - Financial Markets and Institutions - - - Europe: 1913-
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-30 (All new papers)
- NEP-BAN-2007-06-30 (Banking)
- NEP-COM-2007-06-30 (Industrial Competition)
- NEP-HIS-2007-06-30 (Business, Economic & Financial History)
- NEP-INO-2007-06-30 (Innovation)
- NEP-NET-2007-06-30 (Network Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bátiz-Lazo, Bernardo & Wardley, Peter, 2007. "Banking on change: information systems and technologies in UK high street banking, 1919–1969," Financial History Review, Cambridge University Press, Cambridge University Press, vol. 14(02), pages 177-205, October.
- Stan Sienkiewicz, 2002. "The evolution of EFT networks from ATMs to new on-line debit payment products," Payment Cards Center Discussion Paper, Federal Reserve Bank of Philadelphia 02-04, Federal Reserve Bank of Philadelphia.
- Hubert Bonin, 2004. "The development of accounting machines in French banks from the 1920s to the 1960s," Accounting History Review, Taylor & Francis Journals, Taylor & Francis Journals, vol. 14(3), pages 257-276.
- James J. McAndrews, 1991. "The evolution of shared ATM networks," Business Review, Federal Reserve Bank of Philadelphia, Federal Reserve Bank of Philadelphia, issue May, pages 3-16.
- Mcandrews James J., 2003. "Automated Teller Machine Network Pricing - A Review of the Literature," Review of Network Economics, De Gruyter, De Gruyter, vol. 2(2), pages 1-13, June.
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