The Short-Term Effects of Generative Artificial Intelligence on Employment [pdf]

Nov 11, 2023 ·

This paper examines the implications of financial technology (FinTech) for the banking sector. FinTech has become an increasingly important part of the modern financial industry, with a number of new companies and technologies emerging in recent years. This paper focuses on three major areas: the effect of FinTech on traditional banking activities, the associated risks, and potential policy measures to address these challenges.

The paper finds that FinTech has had a significant impact on the banking sector, particularly in terms of competition, both from traditional players and new entrants. It also suggests that changes in the competitive landscape have resulted in increased efficiency and lower costs for consumers. However, the paper notes that FinTech has also created a number of risks, including cyber security threats, data privacy concerns, money laundering, and financing of terrorism.

In terms of policy responses to these risks, the paper identifies several key areas. These include regulations to ensure consumer protection and the development of strong governance systems for FinTech firms. Other measures include the establishment of frameworks to monitor and manage risk, as well as requirements for disclosures and transparency. Additionally, the paper recommends establishing public-private partnerships to improve the capacity of regulators and build trust between the public and private sectors.

Overall, this paper highlights the impact of FinTech on the banking sector, as well as the associated risks. It provides useful insights into the potential policy measures that governments could adopt to ensure safety and stability in the banking sector in the future.