UBS Center Newsletter July 2018

4 “The most fundamental inno- vation in finance in the past 100 years was the ATM.” “crowdfunding threatens exist- ing institutional structures.” Serial entrepreneur Marc P. Bernegger and Daniel Diemers, partner at PwC Strategy&, are convinced that we are indeed at a historic turning point. Economic historian Joachim Voth (University of Zurich) could not disagree more. ments for payment systems remain the same. No matter whether you pay with a “bulla” or with plastic money, the payment systems need to be secure, ac- cepted, mobile, and finite. Cryptocurrency and crowdfunding Goetzmann believes in the potential of fintech and the technological progress in finance. Crowdfunding, for example, has the potential to democratize access to ventures, thus, This creates resistance, as is often the case with inno- vative technologies. When asked about cryptocurren- cies, Goetzmann was concerned about the current bitcoin and blockchain euphoria. Even so, he conclud- ed with an optimistic outlook: the past has shown time and again that once euphoria evaporates, the changes that remain still represent a significant im- provement. When experts disagree Are we now at a historic turning point in finance? This question divided the experts on the panel following Goetzmann’s keynote lecture. Marc P. Bernegger, serial entrepreneur, and Daniel Diemers, partner at PwC Strategy&, are convinced that we have indeed reached a juncture. They argued that the technological revolution, in particular the inter- net, has changed the economy tremendously. Never before in human history has so much innovation occurred simultaneously and as fast as it does today. Economic historian Joachim Voth (University of Zurich), however, could not disagree more. He put today’s technological innovations into a long-term perspective. Obviously, there have been many new forms of financial services, such as internet bank- ing. But for Voth, these are part of a continuous development and far from a turning point. In par- ticular, the financial system’s central function and the main services it provides have not changed and are not going to change in the near future. Indeed: DIALOGUE & EVENTS Podium on the future of Swiss finance, when experts disagree.