An Overview of Technologically Enabled Finance

Brown, David C.; Lin, Mingfeng

An Overview of Technologically Enabled Finance

Forthcoming in The Palgrave Handbook of Technological Finance, Edited by Raghavendra Rau, Robert Wardrop & Luigi Zingales

40 Pages Posted: 5 Mar 2021

See all articles by David C. Brown

David C. Brown

University of Arizona - Department of Finance

Mingfeng Lin

Georgia Institute of Technology - Scheller College of Business

Date Written: January 25, 2021

Abstract

Technologically-enabled finance, or FinTech, is the application of new technologies to financial activities. Broadly speaking, FinTech developments fall into two general areas of finance: matching capital supply with demand and personal finance. In each area, we discuss a range of topics, from microlending, peer-to-peer lending and credit monitoring, to crowdfunding, cryptocurrencies and robo-advisors. In some cases, such as credit decisioning, new technologies can make finance more efficient, but also raise potential concerns related to the use and security of information. In other cases, such as crowdfunding or cryptocurrencies, new technologies have the potential to fundamentally change how finance operates. We highlight businesses that are pushing the boundaries of finance and we discuss open questions of interest to practitioners, regulators and academics.

Keywords: FinTech, Peer-to-Peer Lending, Crowdfunding, Cryptocurrency, Robo-Advising

Suggested Citation: Suggested Citation

Brown, David C. and Lin, Mingfeng, An Overview of Technologically Enabled Finance (January 25, 2021). Forthcoming in The Palgrave Handbook of Technological Finance, Edited by Raghavendra Rau, Robert Wardrop & Luigi Zingales, Available at SSRN: https://ssrn.com/abstract=3772994