Separating apples from oranges: identifying threats to financial stability originating from FinTech

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By Andrea Minto Moritz Voelkerling Melanie Wulff, Capital Markets Law Journal, Volume 12, Issue 4, 1 October 2017, Pages 428–465

  • This article aims to develop a theoretical framework to aid supervisors, policy- and law-makers to manage risks and harness opportunities arising from technology-enabled financial innovations (FinTech), especially from a financial stability perspective.
  • Until now, ‘FinTech’ has been vaguely associated with concepts like ‘disruption’, ‘decentralisation’ and ‘disintermediation’. Very little effort has been expended on explaining the relevance of each of them. Departing from the prevailing trend, this article deploys such concepts as filters in risk-profiling FinTech.
  • The article identifies four filters (economic function, disruptive potential, disintermediation and decentralization) against which to categorize ‘FinTech’. The output of the filtering process is intended to facilitate the examination of questions relating to policy and regulatory responses.

Read the full article at: https://doi.org/10.1093/cmlj/kmx035