The pervasive implementation of information technologies in retail banking has paved the way to significant transformations including organizational changes as well as a wider product range. The central theme that is discussed in this paper is the degree to which the unfolding of a technological trajectory has provided incentives to mutual adaptations in the supply and

demand of retail services. Accordingly, the paper will focus on the emergence of a network structure in the UK retail banking system and on the process of product substitution that emerged on the demand side.