Electronic funds transfer and the internationalisation of the banking and finance industry

Growth of electronics funds transfer (EFT) is examined in the context of the internationalisation of the banking and finance industry. EFT has grown in response to the internationalisation of the industry and in turn has facilitated its development. Reasons for the geographical diversification of transnational banks and other financial institutions are discussed. The growing interdependence between international financial centres of New York and London is highlighted as is the emergence of Asian financial centres of Tokyo, Hong Kong and Singapore. Various types of international EFT systems are examined including SWIFT and leased networks operated by transnational banks. In addition, entry of non banking institutions into the international EFT area is considered. Competition between banks as well as between banks and non-banking institutions is examined in the context of these EFT developments.