This paper aims at contributing to the shaping of a new definition of banking. While banks have traditionally offered asset transformation, information-intensive lending, and payment services, recent advances in information processing and data communications have had such a strong influence that the provision of each of these services is now becoming distinctly separate. Thus, the conventional image of banks does not fit the reality. This paper examines the impact of new technology on banking and examines the resultant changes it has occasioned. Some policy implications are also briefly discussed.
Views expressed in the paper are those of the authors and do not necessarily reflect those of the Bank of Japan or Institute for Monetary and Economic Studies.