Democratizing Finance: The Radical Promise of Fintech

by Marion Laboure, Nicolas Deffrennes

We are only in the early stages of a broader revolution that will impact every aspect of the global economy, including commerce and government services. Coming financial technology innovations could improve the quality of life for all people.

Over the past few decades, digital technology has transformed finance. Financial technology (fintech) has enabled more people with fewer resources, in more places around the world, to take advantage of banking, insurance, credit, investment, and other financial services. Marion Laboure and Nicolas Deffrennes argue that these changes are only the tip of the iceberg. A much broader revolution is under way that, if steered correctly, will lead to huge and beneficial social change.

The authors describe the genesis of recent financial innovations and how they have helped consumers in rich and poor countries alike by reducing costs, increasing accessibility, and improving convenience and efficiency. They connect the dots between early innovations in financial services and the wider revolution unfolding today. Changes may disrupt traditional financial services, especially banking, but they may also help us address major social opening new career paths for millennials, transforming government services, and expanding the gig economy in developed markets. Fintech could lead to economic infrastructure developments in rural areas and could facilitate emerging social security and healthcare systems in developing countries. The authors make this case with a rich combination of economic theory and case studies, including microanalyses of the effects of fintech innovations on individuals, as well as macroeconomic perspectives on fintech’s impact on societies.

While celebrating fintech’s achievements to date, Laboure and Deffrennes also make recommendations for overcoming the obstacles that remain. The stakes―improved quality of life for all people―could not be higher.

288 pages, Hardcover

Published April 5, 2022

Reviews

[Pierre · Rating 5 out of 5]

The book offers a thorough review of historial changes in financial products, the most recent financial innovations, and its pivotal role in today's society. My personal favourite chapters were chapters 8-9. The numerous case studies present a topical examples of disruptive financial and technological innovations from both developing and developed countries such as India's Aadhaar, Kenya's M-PESA, China's Alipay, UAE and Singapore's digital government services to name a few. In addition to examples advancing financial exclusion, discussions on the role of government and recommendations to foster economic development. I would strongly recommend this book to students, as well as any professional with an interest in FinTech applications, policy, and innovations.

[Armen Shirvanian]

My interview with Dr. Marion Laboure on "Democratizing Finance" for The Armen Show:

http://www.armenshirvanian.com/podcas...

[Kristian Strauss · Rating 4 out of 5]

Written before the Robinhood game, stock squeeze, this book has set the foundation for a potential means for middle-class investors to have a more active say in the financial markets that dominate the world economies. Considering the result, reading this book is up there with Benjamin Graham's Intelligence Investor regarding the methodology and long-term impact it could have on middle-class investors in the coming years and decades. Laboure should continue her work and see the long-term results that the methods will have on the long-term effects that it may have not only as a framework but as a potential foundation for a more widespread decentralized financial and economic system.