All Rights Reserved. Technological innovation, consolidation, and deregulation will insure they continue to be well into the 21 st century. For at least three years now, almost every newspaper or magazine has been warning the worldwide industry of the demise of traditional retail banking at the hands of the technological changes. And while news of the demise of the traditional brick and mortar, full-service bank branches may be grossly exaggerated, banking in Puerto Rico already has a new face.
Technology is the driving force behind cost efficiency in the banking industry.
Other banks own some 560 ATMs for a total of approximately 1,000 ATMs on the island. In other words, the average number of ATM monthly transactions was 13.3 million during 1999, as compared to only 50,000 in 1983. Puerto Rico is perhaps the only jurisdiction of the U.S. were the debit card is used more at points of sale for the acquisition of products and services than for the withdrawal of funds at ATMs. If customer acceptance of ATM transactions is any indication, then newer forms of electronic banking promise to be a success in Puerto Rico. Nearly all banks in Puerto Rico have established a company website, but only six banks so far offer interactive banking services through the Internet.