The pace of innovation is accelerating at the same time as competitive boundaries are blurring.
Traditionally banks have operated as vertically integrated enterprises. This means that they have both manufactured banking products, and also distributed them to their customers. Although this model remains valid for many banks and markets, changing technology and regulation is also encouraging the growth of institutions which specialized in providing one part of the overall banking value chain. Some of these are existing banks, but others are new banks, whether owned by existing banks or not, and some are technology companies whose services are beginning to overlap with some areas of banking.