The rise and success of the barcode: some lessons for financial services

This article critically examines the analogy between the barcode and the standardization of data and communication in financial services, recounting the history of the barcode and considering what lessons this offers for regulation and management of financial firms. The initial development and uptake of the barcode was slow, requiring a decade before barcode scanning at point of sale fully took off worldwide and longer still for full application in the global supply chain. This experience indicates that even substantial economic and business benefits do not ensure rapid adoption of efficiency enhancing technological innovation. This requires incentives for adoption and these can remain weak until a demonstrable business case for change emerges. Such a case may be difficult to make for similar standardization in financial services, especially if adoption is perceived to lower barriers to entry and increase competition. © 2013 Macmillan Publishers Ltd.