Financial Systems Innovation
What would a functional financial system look like that is normalized for an age of information, globalization, and works for the economy and society? In our paper on financial systems innovation, we trace out the past, present, and future of the financial system, in an attempt to answer this question. Today the world is in an unparalleled technological revolution. The question, is could such world-moving transformations in society, economy and technology, largely leave the financial system unchanged structurally, it seems unlikely. Historically, as technology evolved, the financial industry has been reasonably good at integrating those new technologies, in order to better serve customers, but this changed during the financial crisis as banks were busy dealing with the numerous new rules and regulations. Given the rapid rise of the web at that time, there came to form a gap between what banks were offering and what users came to expect – especially from the user experience perspective. Technology companies started to jump in and try to capture this opportunity; the world of fintech was born.