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How systems change

This model from Deborah Frieze at the Berkana Institute sums up what we have been observing in the Finance Innovation Lab since we launched three years ago.

Some innovation within the Lab is focused on incremental changes on the old system, tweaking it to make it more people and planet friendly {new risk models, internalising externalities, green economic policy}. Some are also questioning the underling assumptions on which the current system is based., asking questions like – why do we need banks? Couldn’t we do peer to peer lending? Could we create our own currencies? Could we create a sharing economy?

As predicted by this model, some of the old institutions and senior figures of the existing system have begun to fund the new. One of our key roles is to help guide, nurture and lend credibility to these more innovative ideas while they form.

 

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