The effects of despecialization of financial services have been more evident at nonbank firms than at commercial banks.

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Despecialization in financial services has led to a blurring of lines between different types of financial institutions. Nonbank firms, such as investment firms and insurance companies, have increasingly offered services traditionally associated with banks, such as lending and payment services. This trend is more pronounced in nonbank firms as they venture into new financial activities, whereas commercial banks have generally continued to focus on their traditional banking roles, albeit with some diversification.

The Effects of Despecialization of Financial Services Have Been More