It has enabled, in general, raising the efficiency of financial intermediation in the face of ever-rising volumes of transactions, falling margins and more empowered customer expectations. In particular, there are four or five key areas in which the financial system has experienced the benefits of the technology revolution: product development, market infrastructure, risk control and market reach.
One of the reasons why there is a systemic risk is that the Danish banks and mortgage banks are closely interconnected via payment and settlement systems handling large values. Moreover, the financial institutions use the same data centres, network service providers, etc. Consequently, it is important that all key links in the chain are very strong.