At a time when new technologies represent major challenges for financial sector players, the interdisciplinary research programme FaIR (Finance and Insurance Reloaded) of the Institut Louis Bachelier (ILB), working in this field, provides scientific insights in a recently published research report.
The report of the FaIR programme, which is instructive for professionals and regulators, aims to draw up a state of the art of the main transformations linked to new technologies in the financial sector in the broadest sense (banks, insurance companies, asset managers, etc.). With artificial intelligence, blockchains and the development of fintechs, the financial sector is facing many challenges.
High-level academic analyses
The report on the use of new technologies in finance is structured in three chapters, in accordance with the three research axes of the FaIR programme, namely: the distribution of financial products, the improvement of risk intermediation, and a better connection to the real economy.
The report contains a series of analyses and views from international academic researchers, providing a broad view of the challenges of new technologies in finance, as well as formulating conclusions.
These include the likely rise of retail investors in the financial landscape thanks to technologies provided by fintechs such as robo-advisors; the challenges faced by regulators in adopting standards that protect end-investors without stifling innovation; and a slower digital transformation among insurers compared to banks, due in part to less competition from fintechs in this sector. The future will tell whether these challenges will be met, but until then, to find out more, read the full FaIR report by clicking below: