Driverless Finance

Author:

Allen Hilary J.

Abstract

Everyone is talking about fintech, and they’re usually saying good things. Driverless Finance provides a balance to that conversation, exploring the threats that different fintech innovations pose for our financial system. With in-depth and accessible descriptions of new financial technologies and business models—ranging from distributed ledgers to machine learning, cryptoassets to robo-investing—this book helps readers to think more critically about fintech, and about how the law should respond to it. This book highlights the increased speed, complexity, and coordination inherent in new fintech innovations, and shows how these features could come together in a massive financial system failure. It makes the case for a precautionary approach to regulating fintech, erring on the side of caution to avoid a financial crisis that could have irreversible and catastrophic effects for our society. Because fintech’s system risks aren’t fully addressed by existing financial regulation (or by experimental new approaches like regulatory sandboxes), this book makes several bold new proposals for regulation designed to make fintech-inspired financial crises less likely. These proposals include new forms of disclosure and supervision, new forms of technological tools (known as suptech), and a new licensing regime for financial technologies. This book finishes by discussing how fintech’s impact on financial stability relates to pressing debates about innovation, expertise, cybersecurity, privacy, and competition.

Publisher

Oxford University Press

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