Fintech is introducing in the financial landscape new products, new business models, new players. In this paper we elaborate on the relationship between Fintech and banks, bearing in mind that in the past innovation triggered widespread financial instability. We argue that Fintech represents a serious challenge for the traditional banking business model. However, we build on the evidence on the development of shadow banking to caution against early predictions of an irreparable decline of banking institutions. We conclude that a flexible, pragmatic and open minded approach to Fintech regulation is the second best in a world of huge uncertainty about technology and consumer preferences.
Giorgio Gobbi graduated with honours in Economics and Business from the University of Modena in 1985. He continued his postgraduate studies at Oxford University (Corpus Christi College, 1987), obtaining an M. Phil in Economics in 1989.
In 1990 he joined the Bank of Italy and was assigned to the monetary and financial sector of the Economic Research Department until 2007, carrying out analysis and research on the banking industry. From 1998 to 2004 he headed the department’s Financial Intermediaries Office. He represented the Bank on missions and in working groups at the International Monetary Fund, the Bank of International Settlements and the European Central Bank.
From 2007 to mid-2013 he headed the Financial Structure and Intermediaries Division within the Structural Economic Analysis Department. In July 2013 he was appointed Deputy Head of the Financial Stability Unit.
Since 27 January 2014 he is Head of the Financial Stability Directorate.
He is the author of numerous articles on banking and finance published both in Italy and abroad (including The Journal of Finance, The Review of Finance and The Journal of Banking and Finance). He has co-authored two books on the Italian financial system. He has also taught short courses and delivered lectures on financial intermediation at several Italian universities.