Download or read book Technological Change, Financial Innovation, and Diffusion in Banking written by W. Scott Frame and published by . This book was released on 2016 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: The commercial banking business has changed dramatically over the past 30 years, due in large part to technological change. The paper first describes the role of the financial system in economies and how technological change and financial innovation can affect social welfare. We then survey the literature relating to several specific financial innovations - broadly categorized as new products or services, new production processes, or new organizational forms - and evaluate them in the context of the broader economics literature on innovation. While much effort has been devoted to understanding the characteristics of users and adopters of financial innovations and the attendant welfare implications, we still know little about how and why financial innovations are initially developed.