FinTech in the Financial Market - Between Competition and Stability

19 Pages Posted: 10 Mar 2021

See all articles by Maxime Delabarre

Maxime Delabarre

Institut d'Etudes Politiques de Paris (Sciences Po); Georgetown University, Law Center

Date Written: January 18, 2021

Abstract

This paper argues that the common competition framework is not to be applied to the financial sector. If traditionally competition brings efficiency and diversity in a market, financial regulators must also ensure the stability of the financial market. Henceforth, some limits and entry barriers have to exist. This is particularly true for FinTech companies. If the potential of those new actors is not to be contested, the risk they can bring is also quite obvious. If regulators want the market to be disrupted and to see consumers benefiting from the power of innovation of technology-based companies, they need to adapt their regulatory framework. Only under this condition will the benefits outweigh the potential risks.

Keywords: Financial regulation, financial stability, financial market, competition, innovation

JEL Classification: E50, G20, G32, G34, G38, L13

Suggested Citation

Delabarre, Maxime, FinTech in the Financial Market - Between Competition and Stability (January 18, 2021). Available at SSRN: https://ssrn.com/abstract=3768788 or http://dx.doi.org/10.2139/ssrn.3768788

Maxime Delabarre (Contact Author)

Institut d'Etudes Politiques de Paris (Sciences Po) ( email )

27 rue Saint-Guillaume
Paris Cedex 07, 75337
France

Georgetown University, Law Center ( email )

Washington, DC
United States

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