Discussion paper Finance and Fintech

DP11409 The FinTech Opportunity

This paper assesses the potential impact of FinTech on the finance industry. I document first that financial
services remain surprisingly expensive, which explains the emergence of new entrants. I then argue that the
current regulatory approach is subject to significant political economy and coordination costs, and therefore
unlikely to deliver much structural change. FinTech can improve both financial stability and access to services,
but this requires significant changes in the focus of regulations.


Philippon, T (2016), ‘DP11409 The FinTech Opportunity‘, CEPR Discussion Paper No. 11409. CEPR Press, Paris & London. https://cepr.org/publications/dp11409