- Nostalgic vision: The traditional vision as it was common in the 1950s is characterized by higher capital controls and charges – eventually penalizing people. At times, instead of re-inventing the wheel, the best solution could be the traditional way of doing things. But debt and risk are inevitable in today’s economy, the traditional model does not appear to be a sustainable one.
- Continual vision: This vision works with regulation, which tends to turn into overregulation. We have seen how overregulation has pushed many banking activities into the shadow banking system – a practice popular in Europe. What we need is a more pragmatic and transparent approach.
- Evolutionary vision: Technology is the key to the evolutionary vision. The banking sector, just like many other industries, is switching to a model that involves a partnership between mind+machine. However, the success of this model is highly dependent on how we work with new data generated by the various tools and technologies used today. The delayed response time of decision makers to signs of future crisis is another deterrent. The complexity of our environment demands that policymakers work closely with the sector to prepare for the next financial crisis, and develop tools and solutions to deal with it.
1 Anastasia Nesvetailova – Professor, Labour Party’s Economic Advisory Committee member and Director of City’s Political Economy Research Centre.
2 Marloes Nicholls – Programme Manager, Finance, at Meteos; Director of the Money Comms Lab; and Project Manager and lead researcher at BankingFutures.