Wharton Pension Research Council Working Papers

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Working Paper

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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.


The published version of this working paper may be found in the 2019 publication: The Disruptive Impact of FinTech on Retirement Systems.


robo-advice, financial advice, innovation, financial services market, disruption, costs

Working Paper Number


Copyright/Permission Statement

All findings, interpretations, and conclusions of this paper represent the views of the author(s) and not those of the Wharton School or the Pension Research Council. © 2018 Pension Research Council of the Wharton School of the University of Pennsylvania. All rights reserved.



Date Posted: 08 January 2019