Disruptive Technology and Financial Innovation

Disruptive Technologies & Financial Innovation

Mission Statement

To understand how financial innovation and technology, or Fintech, can be used to improve social welfare.

Background

Technology has disrupted almost every industry, from taxis to cable television. The financial services industry has remained relatively untouched. Technology (often referred to as “Fintech”) is quickly disrupting the industry status quo that afforded financial institutions huge profits by intermediating between the suppliers and demanders of capital. Technology is allowing upstart firms to decrease information asymmetries that generally lead to financial losses, thereby allowing them to survive with less capital. Technology can also allow participants to “adversely select” or front-run investors with their superior information, as may be the case with high frequency traders. These disruptions may lead to ubiquitous, easy-to-use, and less expensive financial services. They may also lead to a violent shake-up in the industry that is less competitive and more costly.

Research Goals

To understand how technology, and innovation more generally, has impacted and will impact the production and consumption of financial services. Our research will focus on three key areas.

This research group aims to investigate the effect of disruptive technology on Finance, with a focus on the “disintermediation” of finance through technological innovation. Specifically, the group will study how technology can change the process by which borrowers and lenders (and savers and consumers) are matched through financial markets.

We will seek to answer important questions such as: does technology make this process more transparent, or do a select few benefit at the expense of the many? We will also endeavour to establish the infrastructure of a virtual data center that will enhance collaboration through data sharing between both internal and external researchers. Our research will focus on three key areas.

Research Areas

Automation

Automation

  • Automated lending
  • High frequency trading
  • Robo-advisers
  • Algorithmic investing
Analytics

Analytics

  • Social media
  • Text mining
  • Cognitive computing
  • Big data
  • Information processing
Payments

Payments

  • Virtual currencies
  • Destributed ledger (Blockchain)
  • Clearing and settlement
  • Origination

Faculty

Evan Dudley

Ryan Riordan
Associate Professor & Distinguished Faculty Fellow of Finance

Contact
Evan Dudley

Elspeth Murray
Associate Professor & Associate Dean of MBA and Masters Programs; and Director - Queens Centre for Business Venturing (QCED/QCBV) and CIBC Faculty Fellow in Entrepreneurship

Evan Dudley

Evan Dudley
Assistant Professor, Finance