Finance has been digital for decades. And both technology and preferences are only changing gradually. So, what triggers the abrupt changes in business models that we currently observe?
The interaction between industry on the one hand and legislators and regulators on the other has changed. New entrants exploit synergies across areas that have so far been regulated by independent authorities, or not at all. While entrants think and act outside the box, regulators and legislators have not yet been able to catch up.
Digital finance poses new challenges, including for financial stability, national security, and consumer protection (digital literacy).