In In the midst of the global financial crisis in 2009 Paul Volcker, Former Federal Reserve Chairman, Famous Observed The only socially productive financial innovation in the last two decades has been automated teller machines. Volcker wonders what to do with today’s tsunami of digitally-enabled financial innovation, from mobile payment platforms to internet banking and peer-to-peer lending.
Volcker may be relieved. Like humble ATMs, many of these innovations have tangible benefits in terms of lower transaction costs. But as a critic of a major financial company, Volcker will probably also be worried about some very large tech companies entering the sector.Their names are as well known as their services are ubiquitous: Amazon in the United States, cacao, a South Korean messaging company, Mercado Libre, an online auction and commerce platform in Latin America, and a Chinese technology company. Alibaba And Tencent.