A crucial issue is what the future relationship between banks and fintechs will be, and what this will imply for the supply of banking services and for banks’ profitability and market power. The answer to these questions depends on the kind of fintechs we are thinking of.
A stronger focus on communication with the public will therefore probably enhance the effectiveness of monetary policy – by, amongst other things, engendering a higher level of credibility [8] and greater trust.