Paul Volcker, former chairman of the US Federal Reserve, once said that the ATM was the only really useful financial innovation. Today’s entrepreneurs and bankers are looking to prove him wrong.
Mr Volcker’s view was far too gloomy. But given the flurry of fintech innovation — some of it potentially disruptive — we must think hard about what defines success.
There are five simple tests for a genuine financial innovation. Is it cheaper? Does it offer much better service? Is it faster? Does it democratise access? And what are its side effects?
