Why did global trade fall so abruptly? The severe recession in the advanced economies greatly restrained aggregate spending, including spending on imports, but the decline in international trade appears surprisingly large even when the depth of the recession in the advanced countries is taken into account.
Our financial system relies on licensed monetary intermediaries, and computer algorithms don’t change this fact. Nevertheless, banks are definitely coming under pressure with respect to their profitability and visibility. Fintechs naturally focus on the most profitable areas of banking.