The etymology of “innovation” goes back to the 1540s and the Latin word “innovatus” meaning to “introduce as new”. The root implies no judgment on whether the thing being introduced is good or bad. These days, however, innovation has positive connotations — at least if the sheer volume of government initiatives sponsoring innovation is anything to go by.
But thinking of innovation in this way is naive. As any police officer will testify, criminals are among the most innovative people on the planet. And it is rare for their innovations to be deemed socially beneficial.
Good innovation must therefore be differentiated from bad. And one area in which this is becoming abundantly clear is the fast expanding high-tech financial service industry, colloquially known as “fintech”. Fintech innovators boast their technologies are making financial services more convenient, more inclusive and more competitive, all the while bringing down costs.