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The Story Behind the Idea


There are so many books about banking, why did you write another one?


A lot of books claim to explain the problems with banking, but most of them fail to reach the essence of the matter. Some authors interpret the financial crisis of 2007–08 as a story of greedy bankers scamming innocent widows and orphans. Scandalous stories can be entertaining to read, but identifying unchangeable aspects of human nature as the root of all evil falls short. It will not prevent the next financial crisis.


Neither will minor regulatory patches, which have been the standard answer to banking crises by many economists and politicians. The current problems with banking are deeply entrenched within the financial system. Fundamental change is needed, and some economists have indeed reverted to radical reform proposals that were originally developed decades ago.


However, while old theories have valuable lessons to teach, we found that old solutions fail to solve today’s problems with banking. Disappointed by the existing approaches toward banking and its problems, we decided to write The End of Banking.



Why did you choose this title?


The End of Banking is the result of careful deliberation, and we have chosen its title for a good reason. We found that banking was a sensible way to organize the financial system in the industrial age, but it got out of control with the rise of information technologies. The financial crisis of 2007–08 was an inevitable consequence of banking in the digital age.


Once the transformative potential of the digital revolution is understood, it becomes evident that banking is no longer an option. This is why the largest part of this book is concerned with outlining a financial system for the digital age that does not build upon banking – and it is why we called the book The End of Banking.



Who stands behind The End of Banking?


We have developed our ideas under the pseudonym Jonathan McMillan. Behind it stand two authors, both experienced in the world of economics and finance. One works in the investment banking division of a global bank. He is a financial expert who loves nothing more than digging through balance sheets, system flowcharts, and transaction data. In his role, he has gained firsthand insights into the workings of the financial centers of London and New York. To protect the identity of this author, The End of Banking is published under a pseudonym.


The other author has chosen an academic path. Always eager to learn, he earned two bachelor’s degrees, one in economics and one in international relations. He holds an M.Phil. in economics from the University of Cambridge and a Ph.D. in economics from the Swiss Federal Institute of Technology, ETH Zurich. In his research, he investigated the impact of banking and banking regulation on macroeconomic stability and welfare; parts of his thesis have been published in the Journal of Economic Theory. He is now an economics editor at Neue Zürcher Zeitung, the Swiss newspaper of record.


Neither of us has any political affiliations, and we are not tied by financial interests.