Andreas Park PRO
Professor of Finance at UofT
Andreas Park
relative wage=avg wage in finance/avg rest of economy
Source: Philippon (AER 2015) "Has the U.S. Finance Industry Become Less Efficient?"
Source: Philippon (AER 2015) "Has the U.S. Finance Industry Become Less Efficient?"
Source: Philippon (AER 2015) "Has the U.S. Finance Industry Become Less Efficient?"
Key features
Approach: Propositions that are
based on EY 2017 FinTech report
Impact on incumbents: struggle to deliver the seamless and personalized user experience.
Consequence: ripple effect
based on EY 2017 FinTech report
Problem for incumbents
Source: EY FinTech Adoption Index 2017
18%
4. Big Tech Firms
3. Those that work to replace or change the financial system as we know it.
Lending and Borrowing
Wealth Management
Payments
Investment Banking Services
Lending and Borrowing
price for loan
effort required to get loan
Example: Upstart
Source: upstart.com
Tools? Machine Learning
Source: Jagtiani & Lemieux, 2017, Philly Fed Working Paper 17-17
Future: Scalability
Source: Jagtiani & Lemieux, 2017, Philly Fed Working Paper 17-17
Payments
5% to cab firm and 10-day delay
International remittances: $600B (U.S.) p.a.
all in: 10% fees
Payments
500M users in India
free international transfers at Interbank rates
used by >60% of total population in Denmark
main changes in recent years
US data: https://www.seeitmarket.com/what-are-etf-and-mutual-fund-flows-trends-telling-investors-now-14449/
main changes in recent years
Source: Bloomberg News, Feb 20, 2015
Note: The biggest disruptors (the HFTs) came from the outside of the traditional system (kinda).
entire career streams disappear
Markets get better
Source: Martineau (future UofT faculty) (WP2017)
Markets get better: the post earnings announcement drift had been a long-standing puzzle in finance
Source: Martineau (future UofT faculty) (WP2017)
Source: Park and Wang (former UTM UG) (WP2018)
Source: Park and Wang (former UTM UG) (WP2018)
RegTech
Compliance
Security
Crowdfunding
Payments
Lending and Borrowing
Digital Wealth
Personal Finance
Platforms,
Accounting
Data and Analytics
InsurTech
Blockchain, DLT
Cryptocurrencies
Step1: Design smart contract = limit order
Step 3: Send money
to smart contract
Step 4: BC confirms trade and changes accounts
Step 2: register on blockchain
source:
By Andreas Park
I used this deck for the first hour of my MGT415 class