Banking Revolution

Over the past decade financial service innovations have contributed to a completely new way in which customers can bank, threatening the status quo of traditional retail banks, and redefining a banking model which has been in place for generations. These new technological advancements have facilitated the rapid emergence of digital banking firms and FinTech companies, leading to established banks being forced to swiftly increase their pace of digital adoption.

Central banking is magic. With a few words, the Fed can lift the stock market out of desperation and catapult it towards euphoric highs. With a few keystrokes, the Fed can conjure up trillions of dollars and fund virtually unlimited Federal spending. And with a few poor decisions, the Fed can plunge the entire world into a recession. The Federal Reserve is one of the most powerful institutions in the world, and also one of the most difficult to understand.

This book is a practical guide to the evolving landscape of finance, highlighting how it's changing our relationship with money and how financial technology, together with macroeconomic and societal change, is rewriting the story of how business is done in developing economies. Financial services companies are trying to become more customer focused, but struggling to help huge customer segments, particularly in developing economies. Alternative financial models and tools are emerging, which are being embraced by consumers and incumbents.

Debates over paper money and banking are older than the United States of America itself. Eighteenth and 19th century Americans were deeply ambivalent about paper money and central banks, and political fights over these issues were among the bitterest in American history. In fact, controversies over the country’s central bank birthed both the first (1792-1824) and second (1828-1852) party systems. Frequently, policymakers crafted responses to the crisis at hand, and as a result, they implemented policies that were inadequate to the challenges the country faced in the future.