Wharton Pension Research Council Working Papers
 

Document Type

Working Paper

Date of this Version

12-2018

Abstract

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.

Comments

This Working Paper is part of a forthcoming publication, entitled The Disruptive Impact of FinTech on Retirement Systems.

Keywords

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

Working Paper Number

2018-21

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.

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Date Posted: 08 January 2019