Banks are uniquely placed to provide this service because they can create money and credit and thereby act as liquidity providers to the economy. 5. Similarly, in the field of payments, the area in finance where fintech is the most impactful, banks are uniquely placed since all digital payments transactions are transfer of money from one bank account to another.
A contraction in residential construction is also expected following the pandemic-related boom. In contrast, the outlook for business investment remains reasonably positive, with many firms operating at a high level of capacity utilisation. The labour market remains tight, with the unemployment rate near a 50-year low.