Rapid technological progress in communication and payments systems across the world have decreased the barriers between borrowers and lenders, enabling far more savers to invest directly in businesses through personal finance apps, peer to peer lending, or even via digital currencies.

Briefly explain whether you think these developments address the problems of asymmetry of information that justify the existence of financial intermediaries.

The technological progress has led to more of information availability and time savings along with the cost savings on the part of both companies and the service provider so technological progress has led to higher degree of advantage for both the parties and it has provided with information availability on various platforms and it is leading to elimination of information asymmetry to a certain extent because both the parties are willing to exchange information over technology to a certain extent and with also helping in having a better management of the exposure of the individual.

Technological progress has also led to information efficiency between various parties and it has led to a higher degree of transparency and lower secrecy so that individuals are able to protect themselves from any kind of fraud as they are becoming more aware in order to find out the different informations about the transactions they are entering into on internet and they will be maximizing the rate of return and eliminating the informational asymmetry to a large extent because the entire system is structured in such a manner that more information available it will help both the parties to maximise their rate of return.

Hence, technological efficiency is helpful for both the parties and is leading to elimination of information asymmetry to large extent.