Arnoud Boot, Peter Hoffmann, Luc Laeven, Lev Ratnovski, 21 July 2020

Technological change in the financial industry is accelerating. Recent developments include new innovations and improvements on past trends. This column distinguishes between the information and communication channels of financial innovation and analyses their implications for financial intermediation. It suggests that innovations in these two dimensions may lead to big changes in the traditional bank business model. New policy priorities should focus on accurately assessing the operational risks and ensuring the robustness of these technologies.

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