I recognize that while it seems clear that the industry is changing, there remains a wide distance between fintech’s promise of a future driven by technology and what many community bankers experience today. From my perspective, it is unlikely that fintech will ever completely eliminate what is the hallmark of community banking—personal interaction and building relationships with customers and communities.
The extended monetary policy interventions by the ECB taken in the aftermath of the sovereign debt crisis, have removed most financing constraints for borrowing and spending by firms and households. This has supported aggregate demand. At this juncture, one might argue that financial conditions are not really an impediment to economic activity and for inflation to increase.