DTCC Explores Impact Of FinTech On Global Systemic Risk

The Depository Trust & Clearing Corporation ("DTCC") published a brief survey on the current state of FinTech and a framework of nine factors to consider in assessing how specific FinTech applications may impact financial stability.

In a Report (the "Report") titled  FinTech and Financial Stability – Exploring How Technological Innovations Could Impact the Safety & Security of Global Markets, DTCC provides the following theses: FinTech developments (i) have the potential to enhance, transform and/or disrupt business models and markets, (ii) are still in the early stages of experimentation and development, (iii) have the potential to be unusually transformational, (iv) are charting a path that is highly unpredictable (as ramped-up investments now are likely to generate rapid transformations in five to ten years), (v) must be assessed on a case-by-case basis as they occur and may be systemically beneficial or harmful, and (vi) require coordination by policy makers.