Carbo-Valverde discusses how FinTech firms are changing the banking landscape. He observes that while digitalization has been around for decades, its impact and speed of diffusion are unprecedented. FinTech firms are changing competiton in these markets. His conclusions are as follows. First, analyzing these markets will require models that are based on network externalities and multi-sided platforms with their underlying pricing strategies. Second, while digitalization will likely reduce marginal costs and increase productivity, lines between bank and non-bank providers will continue to blur creating privacy, regulatory, and law enforcement challenges. Third, the regulation of financial services need to shift from institution based to activity based to create a more level playing field for all providers and better manage risks.