High-Speed Internet, Financial Technology and Banking

Research Note
Published on 23 November 2022


This research investigates the relationship between high-speed internet, financial technology, and banking. We exploit a unique natural experiment, the staggered arrival of fibre-optic submarine cables in Africa, to shed light on the effects of fast internet on banking. Our results indicate that fast internet promoted the role of banks in Africa with sizeable and persistent gains both in lending and deposits. We also provide evidence in line with high-speed internet promoting the adoption of novel financial technologies, transforming the size and liquidity of interbank markets.


Nicola Limodio

Bocconi University

Angelo D'Andrea

Bank of Italy