While the 1  BIS Review 84/2000  provision of financial services was traditionally via the branch networks of financial institutions featuring vaults and lobbies, the emergence of new supply channels such as internet banking and unmanned ATM networks has made it possible to convert without much difficulty networks used for non-financial activities into ones that can provide financial services.
The reduction in processing costs of financial transactions and the easy conversion of non-financial networks to financial ones have created a profitable opportunity for non-financial business firms to enter the financial services industry by selecting such specialized areas as payment and settlement without needing the synergies obtained from accepting deposits and extending loans.