The FinTech Opportunity

This paper assesses the potential impact of FinTech on the finance industry, focusing on financial stability and access to services. I document first that financial services remain surprisingly expensive, which explains the emergence of new entrants. I then argue that the current regulatory approach...

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Bibliographic Details
Published inNBER Working Paper Series p. 22476
Main Author Philippon, Thomas
Format Paper
LanguageEnglish
Published Cambridge National Bureau of Economic Research, Inc 01.08.2016
Subjects
Bank technology
Compensation
Costs
Economic models
Economic statistics
Economic theory
Financial services
GDP
Gross Domestic Product
Mobile commerce
Payment systems
Regulation of financial institutions
Technological change
Value added
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Summary:This paper assesses the potential impact of FinTech on the finance industry, focusing on financial stability and access to services. I document first that financial services remain surprisingly expensive, which explains the emergence of new entrants. I then argue that the current regulatory approach is subject to significant political economy and coordination costs, and therefore unlikely to deliver much structural change. FinTech, on the other hand, can bring deep changes but is likely to create significant regulatory challenges.
Bibliography:SourceType-Working Papers-1
ObjectType-Working Paper/Pre-Print-1
content type line 50
ISSN:0898-2937
DOI:10.3386/w22476