The introduction of cashless wage payments and the spread of branch banking in post-war Germany

The article aims to examine the historical decline in cash-to-GDP ratios in industrial countries, particularly in Germany, from the 1950s to the late 1970s, attributing this trend primarily to the shift toward cashless wage payments. It explores how rising wages, expanded bank branch networks, and regulatory changes influenced the adoption of current accounts and non-cash payment systems. The study also evaluates the role of these factors in contrast to technological advancements, ultimately questioning the applicability of Germany’s post-war experience as a model for current developing countries.

• Date: 11/09/2017
• Sector: Any
• Topics: Digital technology
• Regions: Europe and Central Asia
• Resource type: Publications from partners
• Institutions: Financial History Review