The paper assesses the threat posed by digital banking as seen in the context of a long series of financial and technological innovations in the banking sector. It focuses on the economics of banking services and banks’ two main functions – as providers of liquidity and loans – and analyzes whether these could be displaced by peer-to-peer and marketplace lending.
Jean Dermine is a Professor of Banking and Finance at INSEAD. He holds Doctorat en Sciences Economiques from the Université Catholique de Louvain and Master of Business Administration from Cornell University. He directs the INSEAD Executive Education programmes on Risk Management in Banking and Strategic Management in Banking.
Author of numerous articles on asset and liability management, European financial markets, and the Theory of Banking, Jean Dermine has published five books, among which are European Capital Markets with a Single Currency (Oxford University Press), and Bank Valuation and Value-based Management (McGraw-Hill). His research papers have appeared in the Journal of Financial Intermediation, Journal of Money, Credit and Banking, Journal of Banking and Finance, and other academic and professional journals. Laureate of the EIB Prize for his essay "Eurobanking, a New World", he is a co-author of the ALCO Challenge, a computer-based training simulation used in Europe, Africa, the Americas, and Asia.
Jean Dermine has served as a Visiting Professor at the Wharton School of the University of Pennsylvania, at the Universities of Louvain and Lausanne, CESAG in Dakar, as well as a Salomon Center Visiting Fellow at New York University, and a Danielsson Foundation Guest Professor of Bank Management at the Göteborg and Stockholm Schools of Economics. As a consultant or director of training and executive education programmes, he worked with several international banks, accounting and consulting firms, national central banks, European Central Bank, Bank for International Settlements, HM Treasury, the OECD, the World Bank, the European Commission, and the Mentor Forum for the US Supreme Court and the European Court of Justice.