Efekti primjene informacionih tehnologija na strukturu bankarskog sektora
Effects of IT application on structure of banking industry

Summary/Abstract: This paper deals with effects of IT application on the structure of banking and financial industry. Effects of IT application are analyzed from different aspects, namely - bank’s size, concentration of banking industry, geographic expansion of banks and competition between banks and other non-bank (non)financial institutions. The other part of this paper deals with the future role of banks in the financial industry, i.e. competitiveness of banking industry in the light of big changes in the financial industry. Based on the available literature and empirical studies it can be concluded that IT makes geographic expansion of banks easier, that IT induces merger and acquisition processes in banks and that IT also reduced barriers that traditionally existed between different segments of the financial system. Although IT “endangered” the banks’ special role in the financial industry, exposed them to greater risks, and increased competition it also enabled banks to adapt to changes and improve their performance.

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