But for financial innovation to result in benefits, it needs to focus not on the treasury incomes but must, instead, have customer orientation. When innovations have focused on better alignment of interests between the bank and its customers, they have always resulted in win-win situations.
I can say that most of the innovations in payment and settlement systems, particularly those which deal with one-time customer interface, had this customer focus. The results are visible across the globe. The only segment of the financial markets that came out unscathed during the crisis has been the payment and settlement system.