The increasing pace of innovation in technology used for financial and banking services (“FinTech”) both raises alarm bells and brings high expectations. On the one hand, traditional banking players fear serious losses in terms of eroded market power, reduced customer loyalty and disintermediation of direct consumer relationships. Traditional players are concerned about the impact that FinTech’s promise of “unbundling banking” will have on their core functions (settling payments, collecting savings, providing credit and sharing risk). On the other hand, the arrival of new non-traditional players raises hopes of increased levels of competition within financial markets. For a long time, the retail banking sector has been affected by lock-in problems, low elasticity of demand, abuse of market power by incumbents and high barriers to entry. As a result, large, longer-established banks have been able to not only maintain high and stable market shares, but also engage in product-tying practices to the detriment of new market entrants and consumer welfare.

The Day After Tomorrow of Banking: On FinTech, Data Control and Consumer Empowerment

O. Borgogno;C. Poncibò
2019-01-01

Abstract

The increasing pace of innovation in technology used for financial and banking services (“FinTech”) both raises alarm bells and brings high expectations. On the one hand, traditional banking players fear serious losses in terms of eroded market power, reduced customer loyalty and disintermediation of direct consumer relationships. Traditional players are concerned about the impact that FinTech’s promise of “unbundling banking” will have on their core functions (settling payments, collecting savings, providing credit and sharing risk). On the other hand, the arrival of new non-traditional players raises hopes of increased levels of competition within financial markets. For a long time, the retail banking sector has been affected by lock-in problems, low elasticity of demand, abuse of market power by incumbents and high barriers to entry. As a result, large, longer-established banks have been able to not only maintain high and stable market shares, but also engage in product-tying practices to the detriment of new market entrants and consumer welfare.
2019
Autonomous Systems and the Law
Verlgag C. H. Beck and Nomos
1
55
61
FinTech, Contracts, Autonomous Systems
Borgogno O.; Poncibò C.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2318/1702300
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