In particular, disruptive types of innovation that create new markets and products and carve out new categories of customers are especially powerful, relative to incremental forms of innovation that just seek to improve the quality or lower the cost of existing financial products.9 It is possible that segments of the financial sector could be arriving at a tipping point in terms of the impact of disruptive innovation.
While it would be unwise to offer strong predictions as to the ultimate impact of any specific innovation, regulators and central bankers must be sufficiently 2/4  BIS central bankers' speeches  prepared to respond appropriately to a shifting financial services landscape.