Misregulation Of Person To Person Lending

Amid a financial crisis and credit crunch, retail investors are lending a billion dollars over the Internet, on an unsecured basis, to total strangers. Technological and financial innovation allows person-to-person (“P2P”) lending to connect lenders and borrowers in inspiring ways never before imagined. However, all is not well with P2P lending. The SEC threatens the entire industry by asserting jurisdiction with a fundamental misunderstanding of P2P lending. This Article illustrates how the SEC has transformed this industry, making P2P lending less safe and more costly, threatening its very existence. The SEC’s misregulation of P2P lending provides an opportunity to theorize about regulation in a rapidly disintermediating world. The Article then proposes a preferable regulatory scheme designed to preserve and discipline P2P lending\u27s innovative mix of social finance, micro lending, and disintermediation. This proposal consists of regulation by the new Consumer Financial Protection Bureau

Disrupting Finance

This open access Pivot demonstrates how a variety of technologies act as innovation catalysts within the banking and financial services sector. Traditional banks and financial services are under increasing competition from global IT companies such as Google, Apple, Amazon and PayPal whilst facing pressure from investors to reduce costs, increase agility and improve customer retention. Technologies such as blockchain, cloud computing, mobile technologies, big data analytics and social media therefore have perhaps more potential in this industry and area of business than any other. This book defines a fintech ecosystem for the 21st century, providing a state-of-the art review of current literature, suggesting avenues for new research and offering perspectives from business, technology and industry

Beyond Just Money Transactions: Redesigning Digital Peer-to-Peer Payments for Social Connections

Financial activities, such as the exchange of money between individuals, have long been considered a crucial aspect of how people build and maintain their interpersonal relationships (i.e., a strong, deep, or close association/acquaintance between two or more people) with individuals they know because money is a sensitive social construct. In particular, over the past decade, how to conduct, manage, and experience money exchanges and processes between individuals has been dramatically transformed due to the increasing popularity of digital peer-to-peer (P2P) payment services (i.e., performing one to one online money transactions via a digital device). In this sense, digital P2P payments have shown the potential to affect how people pay and interact with each other regarding money, an important impact factor on various forms of interpersonal relationships, by facilitating direct money transactions between individuals through computer-mediated channels. Therefore, this dissertation research is motivated to leverage a sociotechnical approach to conduct an in-depth investigation of the nuanced human experiences of personal money exchanges mediated by digital P2P payments between people who know each other and the unique role of digital P2P payments in shaping these individuals\u27 social connections with each other online and offline. In doing so, this dissertation research aims to (i) reveal and elaborate the multidimensional influences of digital P2P payments on interpersonal relationships between people who already know each other in terms of both experiences of money exchanges and everyday social interactions; ii) advance our knowledge and understanding of how digital P2P payments systems can be redesigned to better support people\u27s social connections with individuals they know; and iii) envision the future landscape of digital P2P payments in our increasingly networked digital society. This dissertation research involves four studies. Grounded in 158 social media posts and 8 interviews, Study 1 explores how people perceive the increasing trend of integrating digital P2P payments with social media services (e.g., Facebook Messenger payment) and why they decide not to use this service in their daily lives. Study 2 reports findings of a qualitative study of 31 in-depth semi-structured interviews to investigate the influences of using digital P2P payments on people\u27s offline interpersonal relationships. Study 3 reports results of a large-scale anonymous online survey with 218 valid responses to measure the specific immediate social consequences and lasting impacts of using digital P2P payments on people\u27s interpersonal relationships. Study 4 adopts the research through design (RtD) approach with a specific emphasis on participatory design activities to both elicit and qualitatively investigate user needs and user-generated design solutions for digital P2P payment services that can better support people\u27s social connections. This dissertation research thus contributes to innovating financial technologies in the perspective of Human-Computer Interaction and Human-Centered Computing by better understanding new and more complicated social phenomena and dynamics emerging in today\u27s digital economy. First, this dissertation research offers one of the first empirical evidence to unpack and explicate the multidimensional influences of digital P2P payments on both financial experiences/processes and everyday social connections between known contacts, which is understudied in prior scholarship. In doing so, we provide new perspectives on today\u27s technology-mediated financial life and shed light on the intertwining financial and social relationships through technology. These insights also help re-conceptualize computer-mediated interpersonal relationships in today\u27s networked society. Second, we identify and further reflect on user-generated design recommendations and develop prototypes that highlight the importance of taking the interplay of financial and social engagement, in addition to security and privacy, into consideration when redesigning digital P2P payments platforms. Through this RtD approach, we thus rethink and envision the future landscape of digital P2P payments where such technologies can be designed, developed, and used in a more comfortable, innovative, and emotionally satisfactory way. As we are entering a post COVID-19 pandemic age, there is an increasing interest to make digital financial technologies not only secure but also more human-centered, interaction-centric, and culturally sensitive, which can be used to better support and maintain human connections through daily financial activities with or without face-to-face interaction. Therefore, in a broader sense, this dissertation research on the social values of digital P2P payments also contributes to building a more robust and inclusive digital economy in today\u27s changing society

Financing sustainable market actors in circular economy

Peer reviewe

Disrupting Finance : FinTech and Strategy in the 21st Century

This open access Pivot demonstrates how a variety of technologies act as innovation catalysts within the banking and financial services sector. Traditional banks and financial services are under increasing competition from global IT companies such as Google, Apple, Amazon and PayPal whilst facing pressure from investors to reduce costs, increase agility and improve customer retention. Technologies such as blockchain, cloud computing, mobile technologies, big data analytics and social media therefore have perhaps more potential in this industry and area of business than any other. This book defines a fintech ecosystem for the 21st century, providing a state-of-the art review of current literature, suggesting avenues for new research and offering perspectives from business, technology and industry

Rethinking the legal and institutional framework for digital financial inclusion in Nigeria

About 1.7 billion people globally and 36.8 per cent of Nigerians have no access to financial services due to reasons such as distance, financial illiteracy, irregular income, unemployment and account ineligibility. Justifications for the research include the scale of financial exclusion, the proven capacity of financial inclusion to lift people out of poverty, the need for tailored regulatory policies and the opportunity to harness the value and ubiquity of digital financial services (DFS) for the financially excluded. This research examines the broad question: how suitable are the enabling laws and institutions for digital financial services in Nigeria for addressing the needs of the financially excluded? In considering this broad question, the reasons as to why many Nigerians remain financially excluded, in spite of the abundance of regulatory initiatives, are addressed. Using a combination of doctrinal and empirical methods, the burden of accessing financial services is highlighted, strategies for financial inclusion are considered and options for suitable legal and institutional frameworks are explored. In summary, financial inclusion is broadly discussed in chapter one, while a law and development theoretical and analytical framework is constructed in chapter two. Chapter three examines the legal and institutional framework for financial inclusion in Nigeria while the barriers to financial access are discussed in chapter four. The empirical component of the research is analysed in chapter five, and chapter six considers the impact and prospects of eight new and emerging technologies on financial inclusion. The thesis concludes with recommendations and conclusions in chapter seven. Research results indicate that the path to financial inclusion in Nigeria is characterised by a myriad of laws, slow DFS adoption rates, a bank-centred regulatory model and a wide disparity in the pattern of inclusion across gender and geographical locations. Transaction costs remain high and cash is still king. Recommendations such as adopting a more consumer-centred approach to regulation, permitting alternative providers for on-boarding and adapting laws and regulatory policies tailored to the needs of the excluded are made. Additionally, it is recommended that increased financial literacy and transactional capacity are needed to harness digital financial services. It is expected that the findings of this research will inform regulatory changes that will enable a methodical migration of more of the financially excluded class into the formal finance sector

Cryptocurrencies and asset bubbles

ope

The (Near) Future of Central Bank Digital Currencies

The value of global cashless payments has been radically increasing worldwide. Despite cash being the most used payment instrument in the world, technological innovation and new consumer preferences are decisively transforming the way consumers pay and manage money. The COVID-19 pandemic may also have been an accelerator of the cashless mega-trend. Private players currently dominate the digital payment ecosystem, urging central banks to seek solutions to ensure public access to legal tender if cash is phased out. In this context, the idea of a Central Bank Digital Currency (CBDC) is gaining momentum. Nevertheless, there is a need to better understand the implications in terms of risks, benefits and potential costs of CBDCs. From privacy concerns to macroeconomic effects, these implications blur the boundaries of the payment and financial systems, challenging the core functions of our economy and society