Resumen de The impact of scale effects on the prevailing internet-based banking model in the US

Alexandre Momparler Pechuán, Francisco José Climent Diranzo

• Internet-based banks use a technology-intensive production process that may benefit from scale effects as they grow larger. This paper analyzes whether the predominant Internet-primary bank in the USA generates technology-based economies of scale.

  There is evidence of both favorable and adverse technology-based scale effects. As the leading Internet-primary bank gets larger, the financial performance gap with traditional banks shrinks while some of its critical competitive advantages wear down.

  The results suggest that unless the prevailing Internet-primary bank preserves the distinctive advantages of the Internet-based business model as it improves financial performance, it might end up converging with its branching competitors.