The First World War lasted from July 28,  1914 to November 11, 1918. The United States entered the First World War on April 6, 1917. 4 See Correspondence with Great Britain: Montagu Norman, Governor, Bank of England, Pt. 1, 1927. 5 President Wilson worried that relations with both Great Britain and Germany were “delicate, and, seeking to  avoid further complication from “unnecessary financial transactions,” he therefore directed the Board to issue the warning to U.S. banks. See Henry Willis, The Federal Reserve System: Legislation, Organization, and Operation (New York: The Ronald Press Company, 1923), 1096. This episode is also described in Lester V. Chandler, Benjamin Strong, Central Banker (Washington D.C.: The Brookings Institution, 1958) and Lawrence E. Clarke, Central Banking under the Federal Reserve System (New York: The MacMillan Company, 1935). 6 See Correspondence with Great Britain: Letters from Montagu Norman, Deputy Governor, Bank of England,  1916–1920: “There is no occasion to say any more about the announcement of the Federal Reserve Board . . . We quite realise your position and its happening, and, knowing that mistakes may arise even in the best regulated families, the incident must be looked upon as closed.” 7 This account opening was made possible in part by a 1916 amendment to Section 14(e) of the Federal Reserve  Act, which permitted Federal Reserve Banks to open and maintain accounts on their own books for their own foreign correspondents and agencies, with the consent of the Federal Reserve Board of Governors.

Ernst and Young adoption index for 2017 highlights the impressive and rapid growth in adoption of fintech services among mature and developing markets with highest adoption rate among younger generations (25–34 years). On average, about 33% of digitally active consumers have used at least two fintech services in the last six months (compared to just 16% two years ago), with payments and money transfer being the most popular segments (used by 50% of digitally active consumers). Perhaps even more importantly, there is an increasing awareness: 84% of customers are aware of fintech services compared with 62%, two years ago. Thus, rising investments in fintech segment, as well as growing awareness and adoption of fintech services 1/4  BIS central bankers' speeches  indicates that fintechs are embraced and will continue to gain momentum in the future. Financial innovations change the environment not only for customers, but for traditional banking industry and policy makers, as well. Customers may benefit from increased and cost effective access to financial services, although in some instances at the cost of privacy and consumer protection. As for traditional financial institutions, such as banks, they may face strong competition by new entrants, on the one hand, but may benefit from increased cost efficiency, competiveness and ability to offer new state-of-the-art services, on the other hand. The impact on policymakers and regulators is also large, as they have to first properly understand innovations/new services, foresee possible consequences for financial intermediation and stability, and react in a timely and proper manner.