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47 Geo. J. Int'l L. 1271 (2015-2016)
The Evolution of FinTech: A New Post-Crisis Paradigm

handle is hein.journals/geojintl47 and id is 1282 raw text is: 






               THE EVOLUTION OF FINTECH:
               A NEW POST-CRISIS PARADIGM?


       DOUGLAS W. ARNER*,J NOS BARBERISt, AND Ross P. BUCKLEY-,

                                  ABSTRACT

   FinTech, a contraction of 'financial technology, refers to technology-
enabled financial solutions. It 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, during which finance and technology have evolved together: first in the
analogue context; then with a process of digitalization of finance from the late
twentieth centuy onwards; and since 2008, a new era of FinTech emerging in
both the developed and developing world. This new era is defined not by the
financial products or services delivered, but by who delivers them and the
application of rapidly developing technology at the retail and wholesale levels.
This latest evolution of Fin Tech, led by start-ups, poses challenges for regulators
and market participants alike, particularly in balancing the potential benefits of
innovation with the possible risks of new approaches. We analyze the evolution of
Fin Tech over the past 150 years, and on the basis of this analysis, argue against
its too-early or rigid regulation at this juncture.

    I.  INTRODUCTION   ...................................              1272
    II. FINTECH: NEW TERM FOR AN OLD RELATIONSHIP ............ 1274
  III.  FINTECH 1.0 (1866-1967): FROM ANALOGUE TO DIGITAL .... 1276
        A.   The First Age of Financial Globalization ............. 1278



    * Professor of Law, Co-Director, Duke-HKU Asia America Institute in Transnational Law,
and Member of the Board of Management, Asian Institute of International Financial Law,
University of Hong Kong.
    f Senior Research Fellow, Asian Institute of International Financial Law, Faculty of Law,
University of Hong Kong, Founder, FinTech HK and Co-Editor of THE FINTECH BooIK
    Centre for International Finance and Regulation King & Wood Mallesons Chair of
International Financial Law, Scientia Professor, and Member, Centre for Law, Markets &
Regulation, University of New South Wales.
    The authors gratefully acknowledge: the financial support of the Hong Kong Research
Grants Council Theme-based Research Scheme (Enhancing Hong Kong's Future as a Leading
International Financial Centre) and the Australian Research Council Linkage Grant Scheme
(Regulating a Revolution: A New Regulatory Model for Digital Finance); the research assistance of
Jessica Chapman; and comments and suggestions on earlier versions of this paper from partici-
pants in seminars, conferences and workshops in Hong Kong, Singapore, Sydney, Melbourne,
Cape Town, Oxford, and London. © 2016, Douglas W. Arner,Janos Barberis, and Ross P. Buckley.


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