Odd Lots Huw van Steenis On What Central Banks Will Do Next
Sep 9, 2019
Huw van Steenis, a senior advisor to Mark Carney and chair of the BOE's Future of Finance review, dives into the evolving landscape of central banking. He discusses the implications of negative interest rates on financial systems and explores the potential of digital currencies, especially in the wake of competition from tech giants. The conversation also touches on the decline of cash and its societal impacts, alongside regulatory issues facing traditional banks. Huw's insights shed light on how central banks might adapt to technological advancements and market changes.
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Payments as a Battleground
- Technology transforms financial services, with big tech and fintechs rising and regulations lagging.
- Payments are a key battleground between these new players and traditional banks.
Chinese Payment Dominance
- In China, Ant Financial and WeChat Pay control 90% of online payments.
- Ant Financial has the most customers globally, exceeding a billion, five times Citigroup's customer base.
Payments Growth Drivers
- Payments are a high-growth area in financial services, unlike other areas impacted by low rates.
- The shift to online commerce and person-to-person payment apps is driving this growth.