Second, some of the analysis of the long-run effects of automation on banking and finance was both insightful and, with hindsight, too conservative. Even in the mid-1960s, it was becoming clear that the combination of computerized banking systems and telecommunications could fundamentally change 1  BIS Review 87/2000  both business practices and banking regulations.
Successive generations of technology, now including the internet, have helped to accelerate the process of change and to create a dynamic financial system. But third, the early analysis of electronic payments also underestimated the transition costs of the rapid automation and probably overestimated the rate at which computing and communications costs would decline.