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E-Finance: Causing Major Upheavals in the Spatial Organization of the Financial Sector?

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Internet, Economic Growth and Globalization

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Abstract

Like in other sectors, new information and communication technologies have also had a major influence on the financial services sector. They have opened up new possibilities to store, organize and above all transmit and exchange information. For the financial services sector this is essential above all because market access is no longer bound to a presence at a certain location. The sum of the relevant developments that will be outlined in more detail below have been described as electronic or e-finance.

“Clustering develops when the high risks of an activity can be reduced by continuous interchange of information. It is possible, but expensive to communicate by telephone and telex, and many financial functions involving uncertainty are better performed face to face.… that the central financial district of lower Manhattan minimizes communications costs... While presumably communications costs have declined in the last fifteen years..., they are not likely to be so low as to eliminate all tendency to clustering.”

Charles Kindleberger, 1974

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Authors
  1. Nicole Pohl
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Editors and Affiliations

  1. The American Enterprise Institute, 1150 17th Street NW, 20036, Washington, D.C., USA

    Claude E. Barfield

  2. Institute for International and Regional Economic Relations, University of Duisburg-Essen, Lotharstraße 65, 47057, Duisburg, Germany

    Günter Heiduk

  3. University of Potsdam, August-Bebel-Straße 89, 14482, Potsdam, Germany

    Paul J. J. Welfens (Jean Monnet Professor for European Economic Integration, President of EIIW) (Jean Monnet Professor for European Economic Integration, President of EIIW)

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Pohl, N. (2003). E-Finance: Causing Major Upheavals in the Spatial Organization of the Financial Sector?. In: Barfield, C.E., Heiduk, G., Welfens, P.J.J. (eds) Internet, Economic Growth and Globalization. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-24761-6_8

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  • DOI: https://doi.org/10.1007/978-3-540-24761-6_8

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