Financial Innovation and Technology after COVID-19: a few directions for Policy Makers and Regulators in the view of old and new disruptors

Innovation and technology have led to the redefi nition of business models and development of new ones in many bricks and mortar sectors. Similarly, blockchain and fi ntech have impacted the fi nance and banking industries, leading some media to coin the expression ‘Uberization of banking’ and are expected to further affect them in the future. The authors extrapolate from sharing economy models to conclude that while blockchain and fi ntech are poised to advance fi nance and banking, there are no disruptive features that corroborate the term. By analogy and successive approximation, this article identifi es the limitations of the arguments for disruption in fi nance and banking. Besides, hinging upon stylized facts, the article establishes similarities with sharing economy models to identify potential threats stemming from fi nancial innovations such as Tokenomics, tagged as ‘no-ABSs’. Eventually, after an empirical analysis devoted to explore the fi rst impact of pandemic, the authors identify entry points and ways forward arising from the COVID-19 for policy makers and regulators to regain their pivotal role in policing the market and ensuring transparency while driving innovation.