DTCC weighs on Fintech and its risks

Fast-paced innovation requires preparedness for alterations in the risk landscape and unintended consequences.
  • 08 December 2017

The potentially transformative financial technology innovations popularly categorized as fintech will likely introduce new risks to financial stability, according to a Depository Trust & Clearing Corp. white paper.

In the paper on Fintech and Financial Stability, released in October, the post-trade infrastructure operator concludes that the fintech wave is “a powerful force that could spur transformational change over the next several years,” and one that could “impact financial stability in both positive and negative ways.

“While many of these technologies are at a nascent stage at this time,” the report says, “there is little doubt that fintech will likely alter the risk landscape in the future, produce unintended consequences and lead to new types of risks.”

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