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The FinTech Opportunity

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  • Philippon, Thomas

Abstract

This paper assesses the potential impact of FinTech on the finance industry. 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 can improve both financial stability and access to services, but this requires significant changes in the focus of regulations.

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  • Philippon, Thomas, 2016. "The FinTech Opportunity," CEPR Discussion Papers 11409, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:11409
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    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Opportunities in Finance
      by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets on 2016-08-29 17:30:40
    2. How risky are the big U.S. banks?
      by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets on 2016-10-03 17:58:45

    Citations

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    Cited by:

    1. Jon Frost, 2020. "The economic forces driving FinTech adoption across countries," DNB Working Papers 663, Netherlands Central Bank, Research Department.
    2. Xiang Deng & Zhi Huang & Xiang Cheng, 2019. "FinTech and Sustainable Development: Evidence from China Based on P2P Data," Sustainability, MDPI, Open Access Journal, vol. 11(22), pages 1-19, November.
    3. Funke, Michael & Li, Xiang & Tsang, Andrew, 2019. "Monetary policy shocks and peer-to-peer lending in China," BOFIT Discussion Papers 23/2019, Bank of Finland, Institute for Economies in Transition.
    4. Buchak, Greg & Matvos, Gregor & Piskorski, Tomasz & Seru, Amit, 2018. "Fintech, regulatory arbitrage, and the rise of shadow banks," Journal of Financial Economics, Elsevier, vol. 130(3), pages 453-483.
    5. de Roure, Calebe & Pelizzon, Loriana & Thakor, Anjan V., 2019. "P2P lenders versus banks: Cream skimming or bottom fishing?," SAFE Working Paper Series 206, Leibniz Institute for Financial Research SAFE.
    6. Lourenço, Carlos J.S. & Dellaert, Benedict G.C. & Donkers, Bas, 2020. "Whose Algorithm Says So: The Relationships Between Type of Firm, Perceptions of Trust and Expertise, and the Acceptance of Financial Robo-Advice," Journal of Interactive Marketing, Elsevier, vol. 49(C), pages 107-124.
    7. Anagnostopoulos, Ioannis, 2018. "Fintech and regtech: Impact on regulators and banks," Journal of Economics and Business, Elsevier, vol. 100(C), pages 7-25.
    8. Bömer, Max & Maxin, Hannes, 2018. "Why Fintechs Cooperate with Banks - Evidence from Germany," Hannover Economic Papers (HEP) dp-637, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    9. Marko Jakšič & Matej Marinč, 2019. "Relationship banking and information technology: the role of artificial intelligence and FinTech," Risk Management, Palgrave Macmillan, vol. 21(1), pages 1-18, March.

    More about this item

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • G2 - Financial Economics - - Financial Institutions and Services
    • N2 - Economic History - - Financial Markets and Institutions

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