S. Fintech Innovation in Financial Services: Business Models, Legal and Regulatory Structures & Policy Issues

This course will focus on understanding the innovative financial technologies (Fintech) that are rapidly changing the way financial services are delivered in the U.S., and exploring the business, legal, regulatory and public policy challenges of integrating these technologies with traditional banking and financial services structures

Fintech generally refers to disruptive financial sector innovations involving technology-enabled (online and mobile device-based) business models. Independent Fintech businesses can facilitate disintermediation, create and deliver novel products and services, increase access and inclusivity, reduce costs and both create and address privacy, regulatory and law-enforcement challenges.

Fintech can also refer to the increasingly technological approaches that both incumbents and entrepreneurial ventures take to the main financial intermediation functions, e.g., maturity transformation, payments, capital raising and remittances, and to back-end data systems and regulatory compliance.

The goal of the course will be for students to understand the development of Fintech innovation in the U.S., the evolving business models and regulatory and legal structures that underlie Fintech operations, and the opportunities and risks that emerging Fintech business models, including crypto currency and stablecoins, pose for U.S. financial, legal and regulatory systems. Non-U.S. examples will be used to compare and contrast different approaches to key policy issues.

Four key themes will be emphasized:
--Learning how to analyze business models in emerging FinTech
--Understanding how FinTech competes and cooperates with the existing financial services ecosystem
--U.S. Financial regulatory and legal system coverage of, mismatches with, and adaptation to, emerging FinTech business models
--Public Policy issues surrounding FinTech, including
o Personal financial data ownership, use, control and liability
o Artificial Intelligence
o Financial stability
o Financial inclusion and consumer financial health

At the end of the course, students should be able to respond to a pitch for a new consumer Fintech application with a basic understanding of the business, legal and regulatory questions the Fintech raises.

We will frequently have guests from the industry in class to participate in discussion.

The format of the course will be a combination of lectures, seminar discussions, and group events on specific topics.

There will be several group and individual assignments during the semester and a final longer assignment.

The course will be graded as follows:
Class participation: 40%.
Group and individual oral and written class presentation and events: 40%.
Final assignment: 20%


This course will be instructed by a Senior Fellow of the Richman Center for Business, Law & Public Policy, Todd H. Baker. https://www8.gsb.columbia.edu/richman/todd-baker