I have to disagree. The "products" are particular financial instruments, and there's been constant innovation there since the Italian Renaissance.
Money for Nothing is wonderful book that teaches a big inflection point in London. From there to modern derivatives, it's been constant innovation (and occasional disaster).
I started my career as an Engineer, but moved into Banking over 30 years ago, and have worked with. or for, many of the major Banks in the UK.
I therefore have first-hand experience of how Retail, and Investment Banks operate.
Most of the 'innovation' in Banking has been with one purpose only; to maximise profits. Customers are just a means to this end.
It has been widely accepted that one of the contributing factors to the financial crisis, in 2007/08, was the way Banks behaved.
Here in the UK, at least two of our biggest banks were technically bust, and had to be rescued, at huge cost, by UK taxpayers due to totally irresponsible behaviour and inappropriate use of 'toxic' financial instruments.
Paul Volcker ( former Head of the Federal Reserve) said after the financial crisis, that he could only think of one banking innovation that had actually improved society. It was the humble cash machine.
I completely agree with him.
As the 'Sage of Omaha' ,Warren Buffet, said back in 2002 'Derivatives are financial weapons of mass destruction, carrying dangers that while latent, are potentially lethal'.
We all know what happened just 5 years later.
