Those on ten-year US Treasury bonds fell from 7 per cent at the beginning of 1992 to just over 5 per cent in October 1993; the yields on German securities fell from 8 per cent to below 6 per cent at the end of 1993.
Financial innovation supported by new technologies can disrupt traditional providers by spurring competition, creating products that better meet customer needs, and extending the reach of financial services and products to those typically underserved. To realize the benefits of innovation, we need to manage relevant risks.