The digitalization of Finance, along with new market and development opportunities, is not without any risk. The current global crisis has made of digital finance not just a convenience, but more of an existential lifeline. This can be backed by the difference made by digital finance by finding better and cheaper data, removing unnecessary noise, enhancing efficiency to reduce barriers as well as pushing innovation.
Digital finance or “fintech” enables increasing market concentration, ever-increasing returns to scale: ‘network effects’. Some digital finance platforms, most of the time coming from governments, social media, and indeed ‘BigTech’ particularly e-commerce have shown rapid growth; a trend which is likely to accelerate as a result of the global crisis.
Read more about the advantages of digitalizing finance in the current economic context.
(Report by the Social Science Research Network)