The finance industry is changing rapidly with the rise of new technologies and implementation of new regulations.
These regulations range from open banking, in effect since 2018 in the UK and EU, to open finance and open data in Australia, Brazil, Canada, Japan, and Singapore. They allow consumer data of different kinds (payments, credit, or even energy and healthcare in the case of open data initiatives) to be shared securely and leveraged for more innovative and tailored financial services.
In light of these changes, this project will look at how incumbent and entrepreneurial firms strategise to adapt to the changes in the regulatory frameworks in their national context. Understanding the different regulatory contexts in developed and developing countries will allow us to formulate best practices and identify challenges in the transformation of existing players and entry of new players into the financial sector.
As part of this topic, special attention will be given to the entry of platform firms into the financial sector. Starting with payments, big tech platforms such as Amazon, Apple, Google, and Facebook are targeting the financial sector for disruption. Their efforts are to a certain extent facilitated by the changing regulations that allow financial data to be shared more democratically. This creates concerns for regulators for making financial markets more oligopolistic while trying to democratise them.