Financial Innovation and Additionality : The Power of Economic Analysis and Data Analytics
As public and private financial institutions innovate to expand the range of financial products that households and firms use, questions about the additionality of different services have become central. Additional financial services are those that are not already provided by the private sector and that create value added to the overall economy. To identify and measure the contribution of financial services, precise analytical techniques and data are essential. Measuring additionality is challenging but, to the extent that it can be done, it is helpful to assess the multiple effects of financial innovation on the consumers of financial products, the financial service providers, and the economy