The FinTech Opportunity
By Thomas Philippon. The Disruptive Impact of FinTech on Retirement Systems, 2016
552 citations recorded by the source corpus.
FinTech covers digital innovations and technology-enabled business model innovations in the financial sector. Such innovations can disrupt existing industry structures and blur industry boundaries, facilitate strategic disintermediation, revolutionize how existing firms create and deliver products and services, provide new gateways for entrepreneurship, democratize access to financial services, but also create significant privacy, regulatory and law-enforcement challenges. This chapter assesses potential impacts of FinTech on the finance industry. First we show that financial services remain surprisingly expensive in the U.S., which helps explain the emergence of new entrants. We then argue that the current regulatory approach is subject to significant political economy and coordination costs, and therefore it is unlikely to deliver much structural change. FinTech can improve both financial stability and access to services, but this will require important changes in the focus of regulations.
Subfields: Economics and Econometrics, Finance, Management Information Systems
View Paper: https://www.semanticscholar.org/paper/a8b604a6b65d98d65e010e45896b8ea8dbaac230
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Citations in the corpus
- Digital financial inclusion and economic growth: provincial data analysis of China (2021, background): “The ongoing reform of traditional financial assistance is subject to substantial political economy and planning costs, and so unlikely to bring about many systemic improvements as significant welfare benefits from improved financial services are technically feasible but unlikely to occur without the”
- Going digital: implications for firm value and performance (2019, unknown): “For example, studies on FinTech have also found that its adoption leads to significant improvements in productivity for financial services firms (Philippon 2016) and that it is highly valued by markets (Chen et al. 2019).”
- Sustainability in FinTechs: An Explanation through Business Model Scalability and Market Valuation (2020, background): “Cooperation is primarily geared to the integration of a FinTech application (product-related cooperation) along the financial intermediation supply chain [15].”
- Blockchain without Waste: Proof-of-Stake (2020, unknown): “Philippon (2016) argues that “a restricted blockchain could in fact be used by incumbents to deter entry and stifle innovation” thereby “increase[ing] the rents of incumbents” but recognizes that “blockchain technology could improve... efficiency” otherwise.”