Sunday, September 23, 2012

Innovation in the Financial Industry

Quote from Paul Vocker, former chairman of the US Federal Reserve Board, a highly respected personality:
Volcker has been known to defy the stereotype of a Wall Street insider. A profile in The Week for February 5, 2010, claimed that Volcker doesn't even buy the conventional wisdom that "financial innovation" is necessary for a healthy economy. In fact, he likes to say, "the only useful banking innovation was the invention of the ATM."


yujuan said...

Precisely, in the Singapore context, the various innovative schemes of staggered interest payable on FDs, the mixing of insurance content in financial products to tie depositors down for 5 to 10 years, before drawing their money out, are mind boggling, devious schemes hatched up by FIs here.
The local banks also get into the act, maybe not OCBC Bank, their financial products are simpler for the common man to understand.
Precisely, only the introduction of the ATM is the only innovation that's worth praise.
Good, Old Volcker.

Lye Khuen Way said...

That is one real Hard Truth, that ATM.

In real life, these money dispensing contraption in the wall can be frustrating at the most inconvenient occassions.

That Murphy Law truism!

Do you realized that DBS/POSB Atms are really not that all readily available after all these years?

Sure, you can always walk, take a bus/MRT, or drive to another working ATM.

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