We look at why the choices made designing these systems could have an impact on financial inclusion, and how the role of private sector banks could change in the new payments landscape.
Modularization refers to the existence of numerous players in a decentralized value chain, each using digital technology to provide a specialized service that meets the needs of other value-chain players or end-customers. In financial services, modularization represents an alternative to the vertically integrated market structure long dominated by large banks and other institutions.