Student Essay

8583 Words Dec 31st, 2015 35 Pages
The Evolution of FinTech:
A New Post-Crisis Paradigm?
Douglas W. Arner*
Jànos Barberis**
Ross P. Buckley***

Abstract:
“Financial technology” or “FinTech” refers to technology enabled financial solutions.
FinTech is often seen today as the new marriage of financial services and information technology. However, the interlinkage of finance and technology has a long history and has evolved over three distinct eras. FinTech 1.0, from 1866 to 1987, was the first period of financial globalization supported by technological infrastructure such as transatlantic transmission cables. This was followed by FinTech 2.0, from 1987-2008, during which financial services firms increasingly digitized their processes. Since 2008 a new era of
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Introduction .......................................................................................................................... 3
2. FinTech: New Term for an Old Sector ............................................................................. 4
2.1 FinTech 1.0 (1866-1987): From Analogue to Digital ................................................................... 6

2.1.1 The first age of financial globalization ..................................................................... 7
2.1.2 The early post-war period ......................................................................................... 8
2.1.3 The modern foundations: 1967-1987 ........................................................................ 8
3. FinTech 2.0 (1987-2008): Development of Traditional Digital Financial Services ...... 10
3.1 Regulatory approaches to traditional DFS in FinTech 2.0 .......................................................... 12

4. FinTech 3.0 (2009 – present): Democratizing Digital Financial Services? .................. 15
4.1 FinTech and the Global Financial Crisis: Evolution or Revolution? .......................................... 15
4.2 From post crisis regulation to FinTech 3.0 ................................................................................. 17
4.3 The FinTech industry today: A topology ....................................................................................

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