Banking Disruption

Banks and financial institutions perform an essential function in a modern economy linking together customers that have capital deficits and customers with capital surpluses. Nowadays there is a creative destruction that incessantly revolutionizes the economic structure from within incessantly destroying the old one incessantly creating a new one – Joseph Schumpeter dixit. A decade after the financial crisis began in 2007 and after a massive and very costly clean-up and recapitalization the global banking industry is passing through an even more disruptive stage. Exponential technologies are leading to a tectonic shift offering enormous opportunities for building a much more efficient and productive financial system capable of efficiently driving global growth and well-being. This demands a profound transformation of the financial ecosystem.This essay aim at addressing these issues and phenomena along with the regulatory and ethical challenges.