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Emergence and Evolution of Proprietary ATM Networks in the UK, 1967-2000

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  • Batiz-Lazo, Bernardo

Abstract

Through 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.

Suggested Citation

  • Batiz-Lazo, Bernardo, 2007. "Emergence and Evolution of Proprietary ATM Networks in the UK, 1967-2000," MPRA Paper 3689, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:3689
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    References listed on IDEAS

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    1. Alan Booth, 2004. "Technical change in branch banking at the Midland Bank, 1945-75," Accounting History Review, Taylor & Francis Journals, vol. 14(3), pages 277-300.
    2. Mcandrews James J., 2003. "Automated Teller Machine Network Pricing - A Review of the Literature," Review of Network Economics, De Gruyter, vol. 2(2), pages 1-13, June.
    3. Hubert Bonin, 2004. "The development of accounting machines in French banks from the 1920s to the 1960s," Accounting History Review, Taylor & Francis Journals, vol. 14(3), pages 257-276.
    4. 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, vol. 14(2), pages 177-205, October.
    5. Stanley J. Sienkiewicz, 2002. "The evolution of EFT networks from ATMs to new on-line debit payment products," Consumer Finance Institute discussion papers 02-04, Federal Reserve Bank of Philadelphia.
    6. James J. McAndrews, 1991. "The evolution of shared ATM networks," Business Review, Federal Reserve Bank of Philadelphia, issue May, pages 3-16.
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    More about this item

    Keywords

    Automated Teller Machines; UK; clearing banks; network effects;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • N24 - Economic History - - Financial Markets and Institutions - - - Europe: 1913-

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