In this project, I investigate the role of technological development in the banking sector. One area of focus is examining the impact of bank technological development on borrowing by small and medium-sized enterprises (SMEs). The findings of this project have been presented at several policymakers’ events, highlighting its relevance and potential impact on shaping policies related to SME financing.
Another aspect I investigate is the impact of technological development on the cost of intermediation in the financial sector. With the rise of digital platforms and innovative technologies, there is potential for more efficient and cost-effective financial services. I analyze the extent to which technological advancements reduce costs for both financial institutions and consumers.
Additionally, I delve into the risks associated with the development of these new financial ecosystems. I examine potential cybersecurity risks, data privacy concerns, and regulatory challenges that arise as banks increasingly rely on external technological providers for digitalization. We also identify a significant market concentration in DeepTech. By identifying and understanding these risks, my aim is to provide insights on how to effectively manage and regulate these new players in the financial industry.