Category Archives: Fintech

Entrepreneurial Finance and Moral Hazard: Evidence from Token Offerings

By | April 30, 2019

Courtesy of Paul P. Momtaz Token Offerings or Initial Coin Offerings (ICOs) are a rapidly growing market, with more than 4,500 transactions in 2018 alone. However, there is also substantial fraudulent activity spurred by the absence of regulation. My new paper, Entrepreneurial Finance and Moral Hazard: Evidence from Token Offerings, explores a very subtle, hard-to-track… Read More »

High-Frequency Trading Comes to Cryptocurrency

By | April 24, 2019

Courtesy of Marissa Cantu and Lee Reiners Amidst last December’s stock market volatility, Treasury Secretary Steve Mnuchin argued “high-frequency traders combined with the Volcker Rule” were to blame.  Secretary Mnuchin then announced he intended to ask the Financial Stability Oversight Council to review how market structure, in conjunction with high-frequency trading, contributes to stock market… Read More »

The Pros and Cons of Big Tech Banking

By | April 10, 2019

Courtesy of Miguel de la Mano and Jorge Padilla The entry of Big Tech players, such as Google, Facebook and Amazon, into online banking will fundamentally alter retail banking’s competitive landscape. Big Tech platforms have large, installed customer bases, established reputations, powerful brands, considerable earnings and unfettered access to capital markets. They can leverage superior… Read More »

Global FinTech Policy – A Shifting Landscape

By | February 27, 2019

Courtesy of Barbara C. Matthews This February could rightly be called “FinTech Month” in Basel, Switzerland, given the number of documents put out by the Financial Stability Board (FSB) that point to a shift in priorities for the international standard setting body. While little noticed by the financial press, this post will analyze the FSB… Read More »

Digitalisation of Payment Services in Europe

By | February 5, 2019

Courtesy of Fernando Zunzunegui Technology has made financial services more accessible, faster, and cheaper. Payment services, in particular, are a testing ground for fintech innovation.  Cryptocurrencies, payment initiation, and information management services associated with bank accounts have recently emerged as significant disruptions in the payments industry. As data has become essential to economic success, the… Read More »

ICO Regulation not Slowed by Brexit or US Shutdown Chaos

By | January 28, 2019

Courtesy of Barbara C. Matthews It seems somehow ironic and fitting that the economic sector most hostile to centralized governments – cryptocurrency and initial coin offerings (ICOs)  – faces renewed regulatory activity despite the UK Brexit and US shutdown chaos.  On January 23, the Financial Conduct Authority (FCA) in the United Kingdom issued a new… Read More »

Data, Innovation and Transatlantic Competition in Finance: The Case of the Access to Account Rule

By | December 13, 2018

Courtesy of Oscar Borgogno* and Giuseppe Colangelo** In our paper ‘Data, Innovation and Transatlantic Competition in Finance: The Case of the Access to Account Rule’, we focus on the EU regulatory effort, enshrined in the Directive 2366/2015 on payment services in the internal market (PSD2), to enact a sector-specific portability regime (the access to account… Read More »

Tokenomics: Crypto-Asset Valuation, Token Design, and the Development of Blockchain Networks

By | November 16, 2018

Courtesy of Lin William Cong, Ye Li, Neng Wang[1] Advances in FinTech and the sharing economy are being driven by the growing demand for peer-to-peer connections that transform how people interact, work, consume, and produce. Although mass-adoption of blockchain faces many hurdles, the technology holds the capacity to create financial architectures which reorganize our society… Read More »

Fintech Lending Risks and Benefits

By | November 14, 2018

Courtesy of Vincent Di Lorenzo Fintech lending, sometimes referred to as online marketplace lending, is lending through digital platforms that often collect and base lending decisions on nontraditional data sources. Underwriting is typically automated and may employ nontraditional credit algorithms. In the consumer and small business credit market, fintech loan originations have experienced an annual… Read More »

Introducing Blockchain-Based Smart Contracts – a Roadmap for Lawmakers

By | November 13, 2018

Courtesy of Jelena Madir The first thing many people think of when they hear the term “smart contract” is a contract that is somehow transposed into computer code and runs without any human intervention.  This misses the mark by a wide margin.  Instead, smart contracts are better thought of as “conditional transactions” because they refer… Read More »