A good read warning of the dangers/risks in financial services innovation. We believe that the upside is much greater than the downside of ignoring innovation, and in general the author reaches similar conclusions. Do you think innovation in financial services is a neccessity, an unncessesary risk, or somewhere inbetween?

Innovation in financial services is no exception to the rule that every silver lining has a cloud. I believe that it has done considerably more good than harm, but it has undeniably caused damage. The intertwining of benefit and harm means that any assessment of financial innovation will necessarily be subjective. First, there is no clear, objective way of balancing the good and the bad. Think again of automobiles.

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