Digital disruption and market structure: The case of internet banking

Bruce Lyons, Minyan Zhu

Research output: Contribution to journalArticlepeer-review

2 Downloads (Pure)


We provide an econometric study of the adoption of internet banking, a case of a potentially disruptive digital technology which could devalue/replace incumbent legacy. Our aim is to better understand the extent to which it disrupted market structure where incumbents start with a strong customer base. We study both regional integration and national concentration dimensions of market structure in EU member states during the period of 1997-2018. We find that internet banking was initially introduced earlier in more concentrated markets. Although consumer uptake was then slower over time than in less concentrated markets, the initial higher consumer penetration in more concentrated markets was sustained until market maturity. We further find a substantial de-concentrating effect of internet banking, and evidence of integration in previously regionalised markets following uptake.
Original languageEnglish
Article numberICC-23-08-0264
JournalIndustrial and Corporate Change
Early online date20 Mar 2024
Publication statusE-pub ahead of print - 20 Mar 2024


  • Digital Disruption
  • Internet Banking
  • Endogenous Market Structure
  • Market Integration

Cite this