Technology and Finance: The future of banking Online Report Presentation

Technology is disrupting finance, both in markets and intermediation, posing challenges for regulators and the private sector alike. Many questions arise, not least of which is what the benefits and costs of the application of digital technology in finance are. Digital technology presents formidable tests for incumbent financial intermediaries, firms and exchanges, as well as regulators. Prominent issues are the suitability of central bank digital currencies (CBDCs); the trade-offs involved in the massive use of data in terms of efficiency, privacy and market power; and the changes provoked by the electronification of financial markets.

The new Technology and Finance report is the fourth in a seminal series on the Future of Banking, produced by IESE Business School and the Centre for Economic Policy Research, with the support of Citi. The report was prepared by four leading international scholars in banking and finance, led by Prof. Xavier Vives. It is published by CEPR in London. Discover The Future of Banking series.

This groundbreaking new report focuses on three aspects of the impact of technology in finance:

• The disruption of payment systems due to the emergence of digital currencies, with a particular focus on CBDCs.
• The benefits and risks of the use of massive data for the provision of financial services.
• The electronification of securities trading and its effect on trading costs.