Fintech startups leverage on banks for regulatory compliance and access to customer base, while banks allow them to ‘plug-into’ their business as a swift means of acquiring technology; c. This collaborative model is made possible by the application of new technologies such as distributed ledger and open API across a wide range of financial services; d. Consumers and businesses will have access to highly competitive and efficient financial 3/5  BIS central bankers' speeches  services, driven by both scale and adoption of technological innovations; and e. In this scenario, greater financial education and literacy is important to ensure that the benefits of technology and innovation in the financial sector are fully realised. The third scenario is “New Kids on the Block” a. In this scenario, both technology adoption by incumbent banks and fragmentation among finance providers are relatively low; b. Consumers continue to accord a premium to regulated institutions and the existing idea of financial services being offered by a bank; c. Factors such as security, privacy and reliability remain at the forefront of the value proposition of traditional banks.
Owing to a high employment rate, the number of employed persons as a share of the working-age population is now close to the level prevailing before the sharp fall in oil prices in 2014. In 2018, employment rose in most sectors of the Norwegian economy, including oil-related industries. More people entered the labour market, but unemployment nonetheless edged down. There are signs of growing pressures in the economy. A rising number of Regional Network contacts report little spare capacity. A number of employers report difficulties in finding skilled and experienced labour. In the wake of the oil price decline, wage growth has been moderate. The improvement in the labour market has contributed to a pick-up in wage growth in recent years. At the same time, inflation has been high. As a result, real wage growth has been low, with little improvement in household purchasing power. Chart: Consumer prices 2/3  BIS central bankers' speeches  Consumer price inflation edged up through 2018, primarily reflecting a sharp increase in electricity prices. Underlying inflation also moved up, partly owing to the pick-up in wage growth and higher imported inflation. Annual consumer price inflation (CPI) was 2.7 percent in 2018. Persistently high debt growth has added to the vulnerability of the household sector. High house price inflation has fuelled debt growth. In 2018, house price inflation was low, and debt growth eased somewhat. Debt nevertheless grew faster than household disposable income.