The FinTech Opportunity

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Wharton Pension Research Council Working Papers
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robo-advice
financial advice
innovation
financial services market
disruption
costs
Behavioral Economics
Finance
Other Economics
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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.

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2018-12-01
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The published version of this working paper may be found in the 2019 publication: The Disruptive Impact of FinTech on Retirement Systems (https://pensionresearchcouncil.wharton.upenn.edu/the-disruptive-impact-of-fintech-on-retirement-systems/)
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