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Zetzsche, Dirk; Buckley, Ross; Arner, Douglas --- "THE RISE OF TECHFINS: REGULATORY CHALLENGES" [2019] ELECD 2013; in Madir, Jelena (ed), "FinTech" (Edward Elgar Publishing, 2019) 280

Book Title: FinTech

Editor(s): Madir, Jelena

Publisher: Edward Elgar Publishing

Section: Chapter 13

Section Title: THE RISE OF TECHFINS: REGULATORY CHALLENGES

Author(s): Zetzsche, Dirk; Buckley, Ross; Arner, Douglas

Number of pages: 22

Abstract/Description:

Financial technology (FinTech) is transforming finance while challenging regulators and financial regulation at an unprecedented rate. The speed of change is being driven by an increasing number of e-commerce companies entering the financial services sector: ‘TechFins’. These e-commerce companies are characterised by having large non-financial services customer bases which enable the leverage of data supported by the commoditisation of technology, big data analytics, machine learning and artificial intelligence. This chapter considers the impact of these new market entrants on the financial services sector. These TechFins represent an Uber moment in finance. The shift from financial intermediary (FinTech) to data intermediary (TechFin) raises challenges for incumbent traditional financial services institutions, FinTech start-ups and regulators. A new regulatory approach is necessary to balance the competing interests of innovation, development, financial stability, financial inclusion and consumer protection.