Then, for the quarter century following World War II, productivity growth rose to an average rate of 23/4 percent before subsiding to a pace of 1-1/2 percent annually from the mid-1970s to the mid3 1990s. Arguably, the pickup in productivity growth since 1995 largely reflects the ongoing incorporation of innovations in computing and communications technologies into the capital stock and business practices.
The interaction of technology with globalisation has contributed to the expansion of financial markets beyond national borders, heralding the end of geography. In the process, technology has changed the contours of three major functions of financial intermediaries: access to liquidity, transformation of assets and monitoring of risks. The Indian financial system is quickly adapting itself to these developments and is acquiring a customer-centric focus.