Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/229052
Authors: 
Boot, Arnoud W. A.
Hoffmann, Peter
Laeven, Luc
Ratnovski, Lev
Year of Publication: 
2020
Series/Report no.: 
ECB Working Paper No. 2438
Abstract: 
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.
Subjects: 
Financial Intermediation
Financial Innovation
Fintech
Information
Communication
JEL: 
G20
G21
E58
O33
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-4081-8
Document Type: 
Working Paper

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