In my discussion with Sarry Ibrahim on “Thinking Like a Bank,” I pointed out that banking cannot go digital without appreciating that a whole set of new rules apply, as seen from Silicon Valley Bank’s recent fall as rapid withdrawals triggered a balance sheet problem . Banks have to simply stop treating their deposit business as an asset accumulation business and start thinking “utility”. Also, the introduction of FedNow, a new payment infrastructure by the Federal Reserve, is a potential game changer, changing lifestyles, surpassing older systems like Zelle.
● As long as the future of finance is carried by the future of the Information Age, the US will continue to wield significant influence in shaping how the future of finance takes shape even if it is a laggard right now.
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