The digital transformation of finance and banking enables traditional services to be delivered in a more effective and efficient way but, at the same time, presents crucial issues such as fast growing new asset classes, new currencies, datafication and data privacy, algorithmization of law and regulation and, last but not least, new models of financial crime. This book approaches the evolution of digital finance from a business perspective and in a holistic way, providing cutting-edge knowledge of how the digital financial system works in its three main domains: banking, insurance and capital markets. It offers a bird’s eye view of the major issues and developments in these individual sectors. The book begins by examining the wider framework of the subsequent analysis and over the next three parts, discusses the opportunities, risks and challenges facing the digitalization of these individual financial subsectors, highlighting the similarities and differences in their digitalization agenda, as well as the existing linkages and dependencies among them. The book clarifies the strategic issues facing the development of digital finance in these major subsectors over the coming years. The book has three key messages: that digital transformation changes fundamentally the way financial businesses operate; that individual trades have their own digitalization agenda; and that the State with its regulatory power and central banking and money has a particularly important role to play. It will be of interest to scholars, students and researchers of finance and banking, as well as policymakers wishing to understand the values and limitations of new forms of digital money.
Introduction Digital finance glossary Part 1 The framework 1 Digital transformation of finance: regulatory issues and challenges 2 The Digital Finance in Central Banking 3 Digital transformation of financial institutions Part 2 Digital banking 4 Central bank in the age of digital finance 5 Commercial banking: drivers of accelerated digitalization 6 Open banking: what does open banking open? 7 Techfins and the banking system: rising battlefield Part 3 Digital insurance 8 Digitalisation of Insurance: New Values, New Challenges 9 Internet of things in insurance. Quo vadis? 10 Telematics in motor insurance: new opportunities and challenges for insureds 11 Big data analytics in insurance: what is on offer Part 4 Digitalization of capital markets 12 Smart contracts and artificial intelligence 13 Development of cryptoassets and its wider impact 14 Digitalisation of reporting standards on the capital markets 15 The Growing role of non-financial reporting in the age of digital