And what is the best form for the key functions that banks perform, such as safeguarding money, providing loans, and determining risk and return? Or is there a future in which non-banking entities perform banking functions? In discussing these questions, perhaps it’s worthwhile to distinguish between change and transformation.
To me, change implies an increase or decrease over time of something while its nature remains constant. Money was first metal, then paper and now digital, but it’s still money. And today’s stock exchanges are in essence quite similar to those established centuries ago. Transformation is different. It implies something essential changes and a new order emerges. A caterpillar transforming into a butterfly.