The Evolution of FinTech: A New Post-Crisis Paradigm? 

This is a guest post – the output from some academic work coming out of Hong Kong.

“Financial technology” or “FinTech” refers to technology enabled financial solutions. FinTech is often seen today as the new marriage of financial services and information technology. However, the interlinkage of finance and technology has a long history and has evolved over three distinct eras. FinTech 1.0, from 1866 to 1987, was the first period of financial globalization supported by technological infrastructure such as transatlantic transmission cables. This was followed by FinTech 2.0, from 1987 to 2008, during which financial services firms increasingly digitized their processes. Since 2008 a new era of FinTech has emerged in both the developed and developing world. This era is defined not by the financial products or services delivered but by who delivers them. This latest evolution of FinTech, led by start-ups, poses challenges for regulators and market participants alike, particularly in balancing the potential benefits of innovation with the possible
risks of new approaches.
The paper was co-authored by Prof Douglas W. Arner (HKU Law), Mr Janos Barberis (HKU Law) and Prof Ross P. Buckley (USWN Law) and has already been in the top 10 most downloaded within Law and Economic & Finance e-journals. The complete paper may be downloaded directly here.

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