Not-So-Smartphone Disclosures, Jeff Sovern, Nahal Heydari

Arkansas Law Review

The consumer credit market, and particularly the credit card market, lacks perfect competition. Though usury laws and regulation of charges are germane to our findings, this Article focuses largely on disclosure. Specifically, we examine whether consumers understand the disclosures mandated for credit cards in the medium in which many consumers now engage in financial transactions. This Article proceeds as follows: Part I presents some basics on consumer protections for credit cards. Part II reviews the literature concerning disclosures on smartphones. Part III discusses our methodology. Part IV reports our findings. Part V suggests some normative implications.

The Effects Of Section 101'S Subject Matter Eligibility Requirement On Fintech Patent Valuation Models, Fhernam Batiz

Marquette Intellectual Property & Innovation Law Review

None

The Legal Innovation Sandbox, Cristie Ford, Quinn Ashkenazy

All Faculty Publications

"The Legal Innovation Sandbox" examines a novel regulatory approach, called the innovation sandbox, in the context of the legal profession. The paper makes the claim that the “sandbox” regulatory model is in fact better suited to fostering innovation in the legal services arena than it is in the financial technology, or fintech, arena in which the sandbox concept developed. However, any effort to transplant a technique from one context to another needs to be carefully considered. This article is comparative across disciplines – financial regulation and legal services regulation – and across jurisdictions – covering the United Kingdom, the United …

The Legal Innovation Sandbox, Cristie Ford, Quinn Ashkenazy

All Faculty Publications

"The Legal Innovation Sandbox" examines a novel regulatory approach, called the innovation sandbox, in the context of the legal profession. The paper makes the claim that the “sandbox” regulatory model is in fact better suited to fostering innovation in the legal services arena than it is in the financial technology, or fintech, arena in which the sandbox concept developed. However, any effort to transplant a technique from one context to another needs to be carefully considered. This article is comparative across disciplines – financial regulation and legal services regulation – and across jurisdictions – covering the United Kingdom, the United …

The Failure Of Market Efficiency, William Magnuson

Faculty Scholarship

Recent years have witnessed the near total triumph of market efficiency as a regulatory goal. Policymakers regularly proclaim their devotion to ensuring efficient capital markets. Courts use market efficiency as a guiding light for crafting legal doctrine. And scholars have explored in great depth the mechanisms of market efficiency and the role of law in promoting it. There is strong evidence that, at least on some metrics, our capital markets are indeed more efficient than they have ever been. But the pursuit of efficiency has come at a cost. By focusing our attention narrowly on economic efficiency concerns—such as competition, …

The Magic Of Fintech? Insights For A Regulatory Agenda From Analyzing Student Loan Complaints Filed With The Cfpb, Matthew Adam Bruckner, Christopher J. Ryan

Dickinson Law Review (2017-Present)

This Article looks at consumer complaints about student loan lenders and servicers from the Consumer Financial Protection Bureau’s (CFPB’s) consumer complaint database. Using a novel dataset drawn from 30,678 complaints filed against 212 student loan companies, we analyze consumers’ subjective views about whether traditional or fintech student loan lenders and servicers provide a better customer experience. Overall, we find that consumers initiate far fewer complaints against fintech lenders than traditional lenders. But we find that fintech lenders are 28 times more likely than traditional lenders to receive complaints for making confusing or misleading advertisements. Our data also show that complaints …

Gamestop And The Reemergence Of The Retail Investor, Jill E. Fisch

All Faculty Scholarship

The GameStop trading frenzy in January 2021 was perhaps the highest profile example of the reemergence of capital market participation by retail investors, a marked shift from the growing domination of those markets by large institutional investors. Some commentators have greeted retail investing, which has been fueled by app-based brokerage accounts and social media, with alarm and called for regulatory reform. The goals of such reforms are twofold. First, critics argue that retail investors need greater protection from the risks of investing in the stock market. Second, they argue that the stock market, in term, needs protection from retail investors. …

Regulators Nurturing Fintech Innovation: Global Evolution Of The Regulatory Sandbox As Opportunity-Based Regulation, Deirdre Ahern

Indian Journal of Law and Technology

The regulatory sandbox is a real-world alternative to regulatory lag. Its emergence as a novel regulatory development responds to challenges faced by FinTech innovators in navigating an unwieldy regulatory landscape not designed with FinTech in mind. Regulatory sandboxes are in operation in developed countries including Australia, Canada, Denmark, Hong Kong, Singapore, Switzerland, the Netherlands, the United Arab Emirates, the United Kingdom, and the United States. Within the European Union they are seen in Denmark, Hungary, Lithuania, Poland and the Netherlands. The concept has also gained traction with regulators in developing countries such as India, Indonesia, Malaysia, Mauritius and Thailand. Not …

Technology Innovations In Securities Trading: Can Sebi’S Bicycle Catch The High- Frequency Trading Ferrari, Armaan Patkar

Indian Journal of Law and Technology

Algorithmic high-frequency trading is a techinnovation of securities trading. It is enabled by high-tech trading algorithms and communication and computing infrastructure that allows traders to profit based on the speed and volume of their trading, rather than by trading based on conventional trading fundamentals. However, its strategies have become ubiquitous with market manipulation, regulatory arbitrage and clouding the ability of investors to accurately read the market. Understandably, regulators have been making efforts to protect the markets and stay abreast with the rapid evolution of highfrequency trading. In this endeavour, the U.K. Financial Services Authority remarked that regulators are riding bicycles …

Analisis Wechat Pay & Alipay Sebagai Financial Technology (Fintech) Dari China Yang Telah Resmi Beroperasi Di Indonesia, Farisa Alifah

"Dharmasisya” Jurnal Program Magister Hukum FHUI

Abstract

The development of technology innovation has played a major role in the implementation of payment system services. The rapid development of the industry and increasing public adoption of smartphones in Indonesia encourage technology and financial companies to use technology as a payment intermediary. This makes mobile payment services as a new payment alternative for the community. Electronic Money is one of the non-cash instruments that is steadily increasing because of its small, fast, and massive value characteristics that make it the preferred payment instrument for the public.This also encourages the development of the electronic trading business (e-commerce) and financial …

Fintech: A Field Day Of Arbitrage Gone Awry, Grace Fraser

Legislation and Policy Brief

No abstract provided.

Discrimination On Wheels: How Big Data Uses License Plate Surveillance To Put The Brakes On Disadvantaged Drivers, Nicole K. Mcconlogue

Law Faculty Scholarship

As scholarly discourse increasingly raises concerns about the negative societal effects of “fintech,” “dirty data,” and “technochauvinism,” a growing technology provides an instructive illustration of all three of these problems. Surveillance software companies are using automated license plate reader (ALPR) technology to develop predictive analytical tools. In turn, software companies market those tools to auto financers and insurers as a risk assessment input to evaluate consumers seeking to buy a car. Proponents of this technology might argue that more information about consumer travel habits will result in more accurate and individualized risk predictions, potentially increasing vehicle ownership among marginalized groups. …

Fintech And Anti-Money Laundering Regulation: Implementing An International Regulatory Hierarchy Premised On Financial Innovation, Nicholas A Roide

Texas A&M Law Review

Innovations in financial technology (“fintech”) have rippling effects across global markets. Fintech firms utilizing virtual assets and disintermediating blockchain technology continue to rapidly grow in strength and number. As systemic risk mounts due to the inter-jurisdictional nature of fintech, antimony laundering (“AML”) regulators must search for an international answer to maintain global financial stability and protect consumers against illicit activities. A variety of solutions have appeared within local AML regulatory frameworks. These frameworks tend to function as a hierarchy with three ordered objectives: market integrity, rule clarity, and innovation. However, frameworks often place too much emphasis on market integrity and …

Legal Issues In Tribal E-Commerce, Adam Crepelle

American University Business Law Review

No abstract provided.

Non-Debt And Non-Bank Financing For Home Purchase: Promises And Risks, Shelby D. Green

American University Business Law Review

No abstract provided.

Fintech: A Field Day Of Arbitrage Gone Awry, Grace Fraser

Articles in Law Reviews & Journals

No abstract provided.

Discrimination On Wheels: How Big Data Uses License Plate Surveillance To Put The Brakes On Disadvantaged Drivers, Nicole Mcconlogue

Faculty Scholarship

As scholarly discourse increasingly raises concerns about the negative societal effects of “fintech,” “dirty data,” and “technochauvinism,” a growing technology provides an instructive illustration of all three of these problems. Surveillance software companies are using automated license plate reader (ALPR) technology to develop predictive analytical tools. In turn, software companies market those tools to auto financers and insurers as a risk assessment input to evaluate consumers seeking to buy a car. Proponents of this technology might argue that more in-formation about consumer travel habits will result in more accurate and individualized risk predictions, potentially increasing vehicle ownership among marginalized groups. …

Regulating New Tech: Problems, Pathways, And People, Cary Coglianese

All Faculty Scholarship

New technologies bring with them many promises, but also a series of new problems. Even though these problems are new, they are not unlike the types of problems that regulators have long addressed in other contexts. The lessons from regulation in the past can thus guide regulatory efforts today. Regulators must focus on understanding the problems they seek to address and the causal pathways that lead to these problems. Then they must undertake efforts to shape the behavior of those in industry so that private sector managers focus on their technologies’ problems and take actions to interrupt the causal pathways. …

Indikasi Predatory Pricing Pada Praktik Perang Harga Antara Pelaku Usaha Financial Technology (Fintech) Ditinjau Berdasarkan Hukum Persaingan Usaha Di Indonesia, Yohanna Ameilya Panjaitan

"Dharmasisya” Jurnal Program Magister Hukum FHUI

The rapid development of the digital world has opened wider networks for the formation of the global economy, which has also led to the emergence of various business transactions involving many financial technology-based financial companies (Fintech), which provide services similar to banking functions. Fintech is expected to drive the industrial revolution in the form of online digital technology, which is based on new technology that will change the entire production and management chain in each branch of industry. The Fintech company is growing rapidly and significantly in Indonesia, where the Fintech sub-sector is seen to flourish, namely lending and e-wallet …

The Rise Of "Fringetech": Regulatory Risks In Earned-Wage Access, Nakita Q. Cuttino

Northwestern University Law Review

By many accounts, the financial technology, or FinTech, sector appears to have developed an innovative solution to assist low-income workers with income shortfalls between standard paydays by displacing fringe financial service providers, namely payday lenders. Earned wage access programs facilitate early transfers of earned-but-unpaid wages to low- income workers through mobile platforms, algorithmic technology, and GPS tracking. To many, earned wage access programs represent a win-win for employees and employers. These programs are believed to be cheaper and safer alternatives to payday loans. Preliminary research also suggests these programs improve labor-retention rates for employers and help reduce financial distress for …

Data Autonomy, Cesare Fracassi, William Magnuson

Faculty Scholarship

In recent years, “data privacy” has vaulted to the forefront of public attention. Scholars, policymakers, and the media have, nearly in unison, decried the lack of data privacy in the modern world. In response, they have put forth various proposals to remedy the situation, from the imposition of fiduciary obligations on technology platforms to the creation of rights to be forgotten for individuals. All these proposals, however, share one essential assumption: we must raise greater protective barriers around data. As a scholar of corporate finance and a scholar of corporate law, respectively, we find this assumption problematic. Data, after all, …

Disruptive Technologies And Digital Transformation Of The Financial Services Industry In Singapore: Regulatory Framework And Challenges Ahead, Aurelio Gurrea-Martinez

Research Collection Yong Pung How School Of Law

This paper seeks to provide a general overview of the impact of new technologies in the financial services industry in Singapore. For that purpose, it starts by emphasizing that technology has always played an important role in the financial industry. However, new disruptive technologies, as well as the increasing use of data in the financial services industry, have created new challenges and opportunities for the financial sector. While Singapore has managed to address these challenges by adopting one of the quickest and most innovative and comprehensive responses probably observed internationally, financial markets –and particularly the fintech industry– are constantly evolving. …

The Complex Implications Of Fintech For Financial Inclusion, Heather Hughes

Articles in Law Reviews & Other Academic Journals

No abstract provided.

Show Me The (Data About The) Money!, Nizan Geslevich Packin

Utah Law Review

Information about consumers, their money, and what they do with it is the lifeblood of the flourishing financial technology (“FinTech”) sector. Historically, highly regulated banks jealously protected this data. However, consumers themselves now share their data with businesses more than ever before. These businesses monetize and use the data for countless prospects, often without the consumers’ actual consent. Understanding the dimensions of this recent phenomenon, more and more consumer groups, scholars, and lawmakers have started advocating for consumers to have the ability to control their data as a modern imperative. This ability is tightly linked to the concept of open …

Implementasi Equity Crowdfunding Berbasis Teknologi Informasi Berdasarkan Peraturan Otoritas Jasa Keuangan Nomor 37/Pojk.04/2018, Christopher Pribadi

Indonesian Notary

Penelitian ini membahas mengenai pelaksanaan atau implementasi kegiatan equity crowdfunding setelah Otoritas Jasa Keuangan Republik Indonesia menerbitkan Peraturan Otoritas Jasa Keuangan Nomor 37/POJK.04/2018. Sebagai salah satu bentuk perkembangan fintech, equity crowdfunding saat ini telah menjadi salah satu pilihan sumber pembiayaan perusahaan untuk perluasan usaha mereka dan juga telah menjadi salah satu opsi investasi yang menguntungkan dan aman bagi masyarakat umum. Adapun permasalahan yang diangkat dalam

penelitian tesis ini adalah mengenai implementasi kegiatan equity crowdfunding sesuai aturan- aturan hukum yang tertuang dalam POJK Nomor 37/2018; dan, peranan serta tanggung jawab

Notaris dalam pembuatan akta-akta otentik terkait pelaksanaan kegiatan equity crowdfunding. Penelitian …

Rethinking Mistake In The Age Of Algorithms: Quoine Pte Ltd V B2c2 Ltd, Vincent Ooi, Kian Peng Soh

Research Collection Yong Pung How School Of Law

Good traders remove emotion from the decision-making process. Automated trading algorithms have enabled this, allowing one to trade round the clock, and without the constant need to monitor one’s investments. But software has gremlins. Given the vast amounts of money involved in such trades, it was only a matter of time before disputes involving automated trading software came before the courts. The decision in Quoine v B2C2 (“Quoine”) represents the first time an apex court in the Commonwealth has ruled on the applicability of contractual principles to situations involving automated trading software.

Rethinking Mistake In The Age Of Algorithms, Vincent Ooi, Kian Peng Soh

Research Collection Yong Pung How School Of Law

In our previous note: Cryptocurrencies and Code before the Courts ((2019) 30(3) King’s Law Journal 331 - 337), we discussed the Singapore International Commercial Court (High Court)’s decision in B2C2 Ltd v Quoine Pte Ltd. The case subsequently went on appeal, and the Singapore International Commercial Court (Court of Appeal), by a majority, affirmed the decision of the lower court in Quoine v B2C2 (“Quoine”). The case of Quoine represents the first time an apex court in the Commonwealth has ruled on the applicability of contractual principles to situations involving automated trading software. In our recent case note: Rethinking Mistake …

Towards A Data-Driven Financial System: The Impact Of Covid-19, Nydia Remolina

Centre for AI & Data Governance

The COVID-19 outbreak has a growing impact on the global economy and the financial sector, which plays a critical role in mitigating the unprecedented macroeconomic and financial shock caused by the pandemic. Given the unprecedented nature of the current crisis, financial regulators and supervisors, central banks, along with governments and legislatures face challenges to maintain financial stability, preserve the well-functioning core markets, and ensure the flow of credit to the real economy. Even though the COVID-19 has slowed down our daily lives and stopped the operation of many industries, it did not have the same effect in the data-driven finance …

The Promises And Perils Of Insurtech, Lin Lin, Christopher C. H. Chen

Research Collection Yong Pung How School Of Law

The insurance sector, in riding the wave of the FinTech phenomenon, has been rapidly expanding, with a slew of firms having emerged to provide so-called “InsurTech” services. These services incorporate concepts such as blockchain, artificial intelligence, digitalisation and the sharing economy to various aspects of the insurance industry. This profusion of technology brings with it the promise of various benefits including increasing efficiency and lowering costs for not only insurers and intermediaries, but also businesses or consumers as end-users of insurance. However, the development of InsurTech comes with corresponding risks and regulatory concerns not currently accounted for by the traditional …

An Essay On Pluralism In Financial Market Infrastructure Design: The Case Of Securities Holding In The United States, Charles W. Mooney Jr.

All Faculty Scholarship

This essay will appear as a chapter in a forthcoming edited volume published by Oxford University Press. It builds on the earlier article, Beyond Intermediation: A New (FinTech) Model for Securities Holding Infrastructures, 22 U. Pa. J. Bus. L. 386 (2020), which argues that serious consideration should be given to modifications of the deeply intermediated securities holding systems in the United States and elsewhere. Many of the costs and risks imposed by the intermediated holding systems fall within the domain of the regulation of securities markets (internal costs), such as impairments of shareholder voting and bondholder claims against issuers. …