Physical Frictions and Digital Banking Adoption

• 成果类型: Article
• 署名作者: Choi, Hyun-Soo; Loh, Roger K.
• 署名单位: Korea Advanced Institute of Science & Technology (KAIST); Singapore Management University
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2023.4972
• 发表日期: 2024
• 页码: 6597-6621
• 关键词: frictions; digital banking; FinTech; geography; household finance; Financial inclusion

摘要

The behavioral literature suggests that minor frictions can elicit desirable behavior without obvious coercion. Using closures of ATMs in a densely populated city as an instrument for small frictions to physical banking access, we find that customers affected by ATM closures increase their usage of the bank's digital platform. Other spillover effects of this adoption of financial technology include increases in point-of-sale transactions, electronic funds transfers, automatic bill payments, and savings, and a reduction in cash usage. Our results show that minor frictions can help overcome the status quo bias and facilitate significant behavior change.