The new technologies – notably blockchain, artificial intelligence, machine learning and decision algorithms – are already being used by incumbent banks and asset managers who are not about to be swarmed by a host of nimble small FinTech firms. Nevertheless, some usage can be significantly transformative.
The use of artificial intelligence and machine learning by asset managers is one example that will create new risks and may contribute to further concentration in the sector. Another example is the change in Real Time Gross Settlement systems run by central banks.