Template-Type: ReDIF-Article 1.0

Author-Name: Ádám Kerényi
Author-Workplace-Name: Institute of World Economic, Hungarian Academy of Sciences
Author-Email: kerenyi.adam@krtk.mta.hu

Author-Name: János Müller
Author-Workplace-Name: Hungarian Banking Association
Author-Email: mullerj1@t-online.hu

Title: Brave New Digital World? – Financial Technology and the Power of Information

Abstract: In this paper we focus on the development of FinTech, how is it evaluated and
managed in selected areas, in the European Union, in China and in Hungary. Some
of the pertinent questions in this field are the following: How can regulators keep
up with the rapid pace of development? Can regulation be based on a precise
definition and can a level playing field be ensured between traditional banks and
FinTech start-ups? What are the risks? How can they be handled by supervision and
regulation? We can conclude that FinTech is in the initial phase of a “revolutionary”
process, and the definition of this phenomenon is broad and changing. Regulators
and supervisors must influence the conditions in a way that a level playing field and
risk assessment should be the same for traditional banks and FinTech companies.
All of the actors have responsibility, including central banks, regulators, supervisors,
incumbent banks, consumers and FinTech companies. Information is power, and
several economists claim that digital is the new normal. In our paper we partly
justify the first part of the sentence and we put a question mark at the end of the
second part.

Classification-JEL: D74, G21, O33, N74
Keywords: Revolutions, Financial Institutions and Services, Technology, Diffusion Processes
Pages: 5-32
Volume: 18
Issue: 1
Year: 2019
File-URL: http://english.hitelintezetiszemle.hu/letoltes/fer-18-1-st1-kerenyi-muller.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:18:y:2019:i:1:p:5-32