FinTech Innovation and the Transformation of Financial Services

This course will focus on the so-called "FinTech Revolution" which is transforming traditional banking and financial services. FinTech generally refers to disruptive financial sector innovations involving technology-enabled (online and mobile device-based) business models. Independent FinTech businesses can facilitate disintermediation, create and deliver novel products and services, increase access and inclusivity, reduce costs and both create and address privacy, regulatory and law-enforcement challenges. FinTech can also refer to the increasingly technological approaches that both incumbents and entrepreneurial ventures take to the main financial intermediation functions, e.g., maturity transformation, payments, capital raising and remittances, and to "back end" data systems and regulatory compliance. The goal of the course will be for students to understand the major categories of FinTech innovation in the U.S., including crypto currency and blockchain, the evolving business models and regulatory and legal structures that underlie these categories, and the opportunities and risks that emerging FinTech business models create for financial, legal and regulatory systems. Non-U.S. examples will be used to compare and contrast different approaches to key policy issues. Four key themes will be emphasized: 1) Understanding innovative business models in emerging FinTech. 2) FinTech competition and cooperation with the existing financial services ecosystem and 'big tech.' 3) Financial regulatory and legal system coverage of, mismatches with, and adaptation to, emerging FinTech business models. 4) Public Policy issues surrounding FinTech (Innovation and efficiency; Personal financial data ownership, use, control and liability; Financial stability; Financial inclusion and consumer financial health). No prerequisites but professor permission will take into account relevant background. Elements used in grading: class participation, class assignments and final take-home assignment. CONSENT APPLICATION: To apply for this course, students must complete and submit a Consent Application Form available on the SLS website (Click Courses at the bottom of the homepage and then click Consent of Instructor Forms). See Consent Application Form for instructions and submission deadline.