Technology-driven innovation in finance – fintech – is accelerating. The use of ‘contactless’, online banking, and e-commerce is already widespread in the UK. COVID-19 has further catalysed this transition. More than ever, we need a financial system that serves people and planet.
This report looks beyond specific new products to explore how fintech is transforming finance on a systemic level. It examines three main areas in detail.
The first – fintech today – uncovers the new data, analytical tools, business models, and businesses underpinning the speed and convenience of 21st century finance.
The second section of the report explores four key areas in which this relationship can exacerbate and create new risks in finance: democracy, sustainability, justice and resilience.
The third and final section of the report asks what it will take to transform fintech for good. It is not inevitable that fintech will continue along its current trajectory. There are many examples, including from Lab community members, that help show an alternative approach is possible.