Also, the programming of smart contracts on a distributed network might add further gains in efficiency, by providing for the automation of processes. This is so, especially, in the case of complex contracts that give rise to multiple transactions distributed over time or conditional upon one another. Other innovations receiving less media attention than cryptotokens nevertheless appear to be more mature and are, in practice, exerting a notable impact on the way in which financial institutions in general, and banks in particular, provide their services. I am referring specifically to big data, artificial intelligence and what is known as cloud computing. Big data offer clear potential for enhancing and personalising the supply of financial services. True, financial institutions have for some time been using massive data processing techniques to enhance knowledge of their customers and to personalise their services. However, these possibilities have now been boosted thanks to the growing volume of information that is available in digital formats, cheaper storage costs and the increase in computing power. The moves in big data are in fact boosting the development of other technologies that go beyond mere data processing. This is the case of artificial intelligence and automatic learning. They have numerous applications in the financial sector and are directed not only at end-products and customer relations, but are also transforming other financial servicesprovision facets, including banks’ in-house operations in areas such as risk management or regulatory compliance. The use of virtual agents or virtual recognition is already contributing to enhancing users’ relationship with financial services-providers.

In this connection, I shall first briefly review the innovations I consider most significant and, secondly, I shall address the challenges posed by the new scenario for the authorities, and in particular for a central bank. Financial market innovations Any list of ongoing financial innovations inevitably highlights the weight of technology. The significance of the technological component in this new phase is such that it has ultimately lent its name to the process of change: Fintech. What is involved, however, is a broad and diffuse concept, which encompasses not only new highly technological firms, but any financial institution that is innovating through the application of new technologies. Occasionally, it is also used to describe new business models and even to refer to the basic technologies enabling the various innovations. The confusion surrounding the Fintech concept is illustrative of the confusion deep-change processes can cause. In these circumstances, it is easy to be swept away by excessive enthusiasm or by unwarranted pessimism, two options with little value added. It is undoubtedly much more useful to focus on separating those innovations with the potential to improve efficiency in the provision of financial services, cutting costs and increasing security, and those seeking to adapt to the changes occurring in demand, from those spurious novelties that provide no significant improvements and which should be blocked as soon as possible. In other words, what is truly important should be separated from what is simply showy.