Batiz-Lazo, Bernardo (2007): Emergence and Evolution of Proprietary ATM Networks in the UK, 1967-2000.
Download (576kB) | Preview
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.
|Item Type:||MPRA Paper|
|Institution:||University of Leicester|
|Original Title:||Emergence and Evolution of Proprietary ATM Networks in the UK, 1967-2000|
|Keywords:||Automated Teller Machines; UK; clearing banks; network effects|
|Subjects:||O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences; Diffusion Processes
N - Economic History > N2 - Financial Markets and Institutions > N24 - Europe: 1913-
|Depositing User:||Bernardo Batiz-Lazo|
|Date Deposited:||24. Jun 2007|
|Last Modified:||12. Feb 2013 19:46|
Barclays Group Archives – Wythenshawe Barclays Bank Automation Committee Minutes, 1973-76 UK Board Minutes, 1976 Head Office Circulars Woolwich Equitable Building Society Woolwich World (Internal magazine) - several issues, 1984-89
Ian Ormerod Personal Archives (NCR UK Retirement Fellowship) – Solihull Cash Advance: The History of NCR in Scotland 1946-1996, Dundee: NCR Scotland Ltd. (1996, ISBN 0 9529630 0 0) Images and photographs NCR 770 (various) NCR 1780 (various) Production facilities at Dundee N.C.R. Post – several numbers NCR Corporation, Annual Report and Accounts, 1978. NCR Pocket Digest, Products and Services, May 1981. The History of NCR, Dayton OH : The NCR Corporation (circa 1999)
Lloyds TSB Group Archives – London Lloyds Bank News (Internal magazine) – several issues, 1970-73 Index cards - ATM
The Royal Bank of Scotland Group Archives – London Archives of District Bank Drummonds Charing Cross National Provincial Bank National Westminster Bank (NatWest) Royal Bank of Scotland Westminster Bank Williams and Glyn Bank
Personal Communications Nigel Hardman, Group Archives, Alliance and Leicester plc (03-May-2007) Alan Jaques, Design and Engineering Manager, Gunnebo CSI (01-May-2007) Ian Finn (through Jane Garland Marketing Communications Manager), Chubb Fire Limited (10-Apr-2007) Nicholas Webb, Barclays Group Archives (21 and 23-Jun-07)
Ackrill, M. and Hannah, L. (2001). Barclays: The Business of Banking 1690-1996. Cambridge, Cambridge University Press.
Barrie, A. (2006). The Impact of Information Technology on UK Banking: The Case of Automated Teller Machines. MSc (Accounting and Finance). London, London South Bank University.
Bátiz-Lazo, B. and Billings, M. (2007). In Search of a Winning Strategy: A Case Study of Strategic Change at the Woolwich Equitable Building Society (1950-70). Fifth Accounting History International Conference. Banff.
Bátiz-Lazo, B. and Boyns, T. (2003). Automation and Management Accounting in British Manufacturing and Retail Financial Services, 1945-68. Information Systems and Technology in Organisations and Society, Universitat Pompeu Fabra, Barcelona.
Bátiz-Lazo, B. and Hacialioglu, N. (2005). Barclaycard: Still the king of pla$tic? Exploring Corporate Strategy: Text and Cases. G. Johnson et al., . Harlow, Prentice Hall / Financial Times: 892-906.
Bátiz-Lazo, B. and Wardley, P. (2007). "Banking on Change: Information Systems and Technologies in UK High Street Banking, 1919-1969." Financial History Review.
Bátiz-Lazo, B. and Woldensenbet, K. (2006). "Product and Process Innovations in Banking." International Journal of Financial Services Management 1(4): 400-21.
Bátiz-Lazo, B. and Wood, D. (1999). "Management of Core Capabilities in Mexican and European Banks." International Journal of Service Industry Management (Special issue on Service Management in Latin America) 10(5): 430-48.
Bátiz-Lazo, B. and Wood, D. (2000). "Effects of Regulatory Change on European Banks: A Case Study on the Strategy and Stock Market Performance of Lloyds Bank 1980-1993." Journal of European Financial Services 4(1): 31-63.
Bátiz-Lazo, B. and Wood, D. (2001). "Strategy, competition and diversification in European and Mexican banking." International Journal of Bank Marketing 21(4&5): 2002-16.
Bátiz-Lazo, B. and Wood, D. (2002). "An Historical Appraisal of Information Technology in Commercial Banking." Electronic Markets - The International Journal of Electronic Commerce & Business Media 12(3): 192-205.
Bonin, H. (2004). "The Development of the Use of Accounting Machines in French Banks from the 1920s to the 1960s." Accounting, Business and Financial History 14(3): ??
Booth, A. E. (2001). British Retail Banks, 1955-70: A Case of 'Americanisation'? Americanisation in Twentieth Century Europe: Business, Culture, Politics. M. Kipping and N. Tirasoo. Lille, Université Charles de Gaulle.
Booth, A. E. (2004). "Technical Change in Branch Banking at the Midland Bank, 1945-75." Accounting, Business and Financial History 14(3): 277-300.
Ceruzzi, P. E. (2003). A History of Modern Computing. Cambridge MA and London, The MIT Press.
Chandler, A. D. (1990). Scale and Scope: the Dynamics of Industrial Capitalism. Cambridge, MA, Harvard University Press.
Chandler, A. D. (2001). Inventing the Electronic Century. Cambridge MA, Harvard University Press.
Chandler, A. D., et al. (1988). The Dynamic Firm. Oxford, Oxford University Press.
Coombs, R., et al. (1992). "Culture, Control and Competition: Towards a Conceptual Framework for the Study of Information in Organizations." Organization Studies 13(1): 51-72.
Coopey, R. (2004). A Passing Technology: The Automated Teller Machine. Wiring Prometheus: Globalisation, History and Technology. P. Lyth and H. Trischler. Aarhus, Aarhus University Press.
Cortada, J. W. (2006). The Digital Hand, Vol. 2. New York, Oxford University Press.
Galbraith, J. K. (1967). The New Industrial State. Princeton and Oxford, Princeton University Press.
Haig, T. (2006). "'A Veritable Bucket of Facts': Origins of the Data Base Management System, 1960-1980." ACM SIGMOD Record 35(2 - June): 73-88.
Hopkins, D. A. (1986). Factors Affecting the Adoption of Automated Teller Machines, Direct Deposit of Paychecks and Partial Direct Deposit to Savings Where Available. PhD Dissertation. Columbus, Ohio State University.
Hopton, D. (1979). Electronic fund transfer systems : the issues and implications. Cardiff, University of Wales Press.
Howells, J. and Hine, J. (1993). Innovative Banking: Competition and Management of the Network Technology. Cornwall, TJ Press (Padstow).
Johnson, H. T. and Kaplan, R. S. (1987). Relevance Lost: The Rise and Fall of Management Accounting. Cambridge MA, Harvard Business School Press.
Kee, R. (1993). "Data Processing Technology and Accounting: A Historical Perspective." The Accounting Historians Journal 20(2): 187-215.
Kirkman, P. (1987). Electronic Funds transfer System: The Revolution of Cashless Banking and Payment Methods. New York, Basil Blackwell Inc.
Lane, S. J. (1989). Entry and Industry Evolution in the ATM Manufacturers' Market. PhD Dissertation. Stanford, CA, Stanford University.
Lee, E.-J. (2000). Consumer Adoption and Diffusion of Technological Innovations: A Case of Electronic Banking Technologies. PhD Dissertation. Knoxville, The University of Tennessee.
Lozano, M. F. (1987). The Diffusion and Adoption of a Technical Innovation: The Automated Teller Machine. PhD Dissertation. Phoenix, The University of Arizona.
McAndrews, J. J. (1991). "The Evolution of Shared ATM Networks." Federal Reserve Bank of Philadelphia Business Review May/June: 3-16.
McAndrews, J. J. (2003). "Automated Teller Machines Network Pricing - A Review of Literature." Review of Network Economics 2(2): 146-58.
McKenney, J. L. and Fisher, A. W. (1993). "Manufacturing the ERMA Banking System: Lessons from History." IEEE Annals of the History of Computing 15(4): 7-26.
Peffers, K. G. (1991). Information Technology Impact on Performance: An Investigation of Investments in Automated Teller Machines. PhD Dissertation. Indiana, Purdue University.
Revell, J. R. S. (1983). Banking and Electronic Fund Transfers. Paris, Organization for Economic Co-operation and Development.
Richardson, D. W. (1970). Evolution of an Electronic Funds-Transfer System. Cambridge MA, The MIT Press.
Robb, F. F. (1996). Information Technology and the Accounting Profession. Accounting History from the Renaissance to the Present. T. A. Leeet al., . New York and London, Garland Publishing Inc.
Sienkiewicz, S. (2002). The Evolution of EFT Networks from ATMs to New On-Line Debit Payment Products. Discussion Paper Payments Cards Centre - Federal Reserve Bank of Philadelphia. Philadelphia.
Tyson, T. (1996). The Impact of Advancements in Manufacturing and Information Technology on Management Accounting Systems. Accounting History from the Renaissance to the Present. T. A. Leeet al., . New York and London, Garland Publishing Inc.
Vázquez-Alanís, G. (2007). ATM Adoption by Banks in Mexico:Did it Lead to Performance and Network Effects? Escuela Superior de Graduados en Administraciòn. Monterrey, Instituto Tècnologio de Estudios Superiores de Monterrey.
Walker, D. (1980). "Electronic Funds Transfer Cost Models and Pricing Strategies." Journal of Economics and Business Fall: ??
Wardley, P. (2000). "The Commercial Banking Industry and its Part in the Emergence and Consolidation of the Corporate Economy in Britain before 1940." Journal of Industrial History 3(2): 71-97.
Yates, J. (2005). Structuring the Information Age. Baltimore, The Johns Hopkins University Press.
Yavitz, B. (1967). Automation in Commercial Banking. New York, The Free Press.