Financial intermediation and technology: What's old, what's new?

Arbeitspapier

We study the effects of technological change on financial intermediation, distinguishing between innovations in information (data collection and processing) and communication (relationships and distribution). Both follow historic trends towards an increased use of hard information and less inperson interaction, which are accelerating rapidly. We point to more recent innovations, such as the combination of data abundance and artificial intelligence, and the rise of digital platforms. We argue that in particular the rise of new communication channels can lead to the vertical and horizontal disintegration of the traditional bank business model. Specialized providers of financial services can chip away activities that do not rely on access to balance sheets, while platforms can interject themselves between banks and customers. We discuss limitations to these challenges, and the resulting policy implications.

Object Details

• ISBN: 978-92-899-4081-8
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Working Paper ; No. 2438

Classification and Topics

• Classification: Wirtschaft ; Financial Institutions and Services: General ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Central Banks and Their Policies ; Technological Change: Choices and Consequences; Diffusion Processes
• Subject: Financial Intermediation ; Financial Innovation ; Fintech ; Information ; Communication

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Boot, Arnoud W. A. ; Hoffmann, Peter ; Laeven, Luc ; Ratnovski, Lev
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2020

Further information

• DOI: doi:10.2866/73816
• Handle: http://hdl.handle.net/10419/229052
• Last update: 10.03.2025, 11:44 AM CET