Financial technology and financial markets

Résumé fourni par la source

This chapter discuses financial technology (FinTech) and its connection/role in the global financial markets. We begin with the brief presentation of several categories of FinTech products such as business-to-business, business-to-consumer, peer-to-peer, the Internet of Things and many more. We continue with the understanding of the interplay between FinTech and financial markets by exploring its key relationships. More specifically, we discuss market access and inclusion, capital market efficiency, disintermediation, regulation and more and explain some of them via several examples using the stock market, the fixed-income market, monetary policy and more. We briefly mention the recent innovation about central bank digital currencies as opposed to cryptocurrencies. We conclude the chapter with some discussion on the linkages between FinTech and global financial services citing academic evidence.