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The FinTech Opportunity

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  • Thomas Philippon
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.

Suggested Citation

  • Thomas Philippon, 2017. "The FinTech Opportunity," BIS Working Papers 655, Bank for International Settlements.
    • Handle: RePEc:bis:biswps:655
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    More about this item

    Keywords

    FinTech; financial innovation; regulation; rents;
    All these keywords.

    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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