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a Anna Iwanczuk, PhD
QUESTIONS ABOUT THE FUTURE OF BANKS AS :
Payment intermediaries
ABSTRACT
This study builds a monetary growth model with home production and endogenous labor supply. Payment systems in contemporary market economies have been built around the banking industries. Banks have always been prominent payment intermediaries. Their traditionally dominant position in retail payment systems and services is being increasingly challenged by various non-bank payment service providers. Moreover, non-bank entities provide services to banks in different stages of the payments within outsourcing. This has many implications for the market of payment services and raises questions about the future of banks as prominent intermediaries in payments. The paper presents the design of payment system in modern market economy and focuses on interconnections between payment and banking systems in their development. Then it discusses current role of banks in payments and identifies changes in the environment and inside payment systems affecting banks’ position as payment intermediaries. It concludes with a summary and some questions related to the future role of banks in payments.
Keywords: payment intermediation, payment services, payment system, retail banking, nonbanks
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