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How disruptive are Fintechs?

Author

Listed:
  • Mario Bergara

    (Banco Central del Uruguay)

  • Jorge Ponce

    (Banco Central del Uruguay)

Abstract

Will the application of technological innovation to finance disrupt financial intermediation? Which are the foreseeable effects on financial markets efficiency, competition, organization of transactions and risks? Which are the challenges and opportunities facing prudential regulation and supervision? Based on the literature on Microeconomics of Banking, Industrial Organization and Transaction Cost Economics we discuss some potential impacts of the proliferation of Fintechs.

Suggested Citation

  • Mario Bergara & Jorge Ponce, 2017. "How disruptive are Fintechs?," Documentos de trabajo 2017012, Banco Central del Uruguay.
    • Handle: RePEc:bku:doctra:2017012
    as

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    File URL: https://www.bcu.gub.uy/Estadisticas-e-Indicadores/Documentos%20de%20Trabajo/12.2017.pdf
    File Function: First version, 2017
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    References listed on IDEAS

    as
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    6. Calomiris, Charles W & Kahn, Charles M, 1991. "The Role of Demandable Debt in Structuring Optimal Banking Arrangements," American Economic Review, American Economic Association, vol. 81(3), pages 497-513, June.
    7. Douglas W. Diamond, 1984. "Financial Intermediation and Delegated Monitoring," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 51(3), pages 393-414.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Fintech; financial intermediation; efficiency and competition in financial markets; contractual risk; market-based and intermediary-based financial transactions; prudential regulation; supervision;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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