3rd Annual Financial Stability Conference hosted by the U.S. Office of Financial Research and the University of Michigan's Center on Finance, Law and Policy.
Although innovations in financial technology, or “FinTech” can be traced back to the introduction of the telegraph in the 1860s, the availability of Internet technology has caused a revolution in FinTech. Today, FinTech continues to disrupt and evolve, not only in how financial products and services are delivered, but who delivers them. Regulators and market participants face challenges in understanding and balancing the benefits of FinTech against potential risks. Innovation can help to catalyze growth, to create new opportunities, to promote transparency, and to manage risk. However, it can also create new risks, including from operations and cyber incidents. In evaluating responses to those risks, balance is essential. Regulatory structures in place could fail to accommodate desirable changes in the financial marketplace. Regulators also may overreact to new technologies, stifling innovation and locking in old forms of doing business. On the other hand, regulatory complacency could permit the buildup of system vulnerabilities or widespread consumer harms.
Over the course of these two days, the expert panelists joining us in this conference will draw from the fields of computer science, data science, complex systems, economics, finance, law and public policy to explore how FinTech can be used to enhance financial stability and address other challenges in financial markets.
|8:00-8:30 a.m.||Conference Registration and Continental Breakfast|
Welcome and Introduction of Keynote Speaker
Richard Berner, Director U.S. Office of Financial Research
Michael S. Barr, Joan and Sanford Weill Dean Gerald R. Ford Schoolof Public Policy University of Michigan
Keynote Address: Gillian Tett, Managing Editor Financial Times
Panel 1: The Contours of Entity-based Regulation of Innovation: FinTech Charters and Regulatory Boundaries
This panel will explore the regulatory perimeter between banking and FinTech firms. Discussion will focus on whether bank chartering of FinTech firms would advance or stifle innovation, safety and soundness, access, and consumer protection.
Amiyatosh Purnanandam, Professor of Finance, Stephen M. Ross School of Business, University of Michigan (moderator)
Amy Friend, Former Senior Deputy Comptroller and Chief Counsel, U.S. Office of the Comptroller of the Currency
Brian Knight, Senior Research Fellow, Mercatus Center, George Mason University
Richard Neiman, Head of Regulatory & Government Affairs, Lending Club
Panel 2: FinTech Market Innovations: High-frequency Trading, Machine Learning, and Artificial Intelligence
This panel analyzes market innovations in high-frequency trading, machine learning, and artificial intelligence. Panelists will explore market efficiency, fairness, investor protection, and systemic issues.
Michael Wellman, Associate Dean for Academic Affairs, College of Engineering, University of Michigan (moderator)
John Ramsay, Chief Market Policy Officer, IEX Group
Supurna VedBrat, Head of Global Trading, BlackRock
Yesha Yadav, Professor of Law, Vanderbilt Law School
Lunch and NetworkingThe Lawyers Club University of Michigan Law School
Panel 3: Systemic Risk: FinTech Problems and Solutions
This panel will evaluate ways that technological innovation in lending, derivatives clearinghouses, and payments systems may contribute to or help overcome systemic risk. Panelists will also discuss cybersecurity and positive and negative network disruptions that can occur with innovation.
Mark Flood, Research Principal, U.S. Office of Financial Research (moderator)
Adair Morse, Associate Professor of Finance, Haas School of Business, University of California Berkeley
Mark Newman, Anatol Rapoport Distinguished University Professor of Physics, University of Michigan
Jared Sawyer, Deputy Assistant Secretary, Financial Institutions Policy, U.S. Treasury Department
Lael Brainard, Governor Federal Reserve Board
|8:15-8:45 a.m.||Conference Registration and Continental Breakfast|
Welcome and Reconvene
Martin A. Philbert, Provost and Executive Vice President for Academic Affairs, University of Michigan
Panel 4: FinTech and Financial Inclusion
This panel will discuss whether and how FinTech can contribute to financial inclusion — expanding access to sustainable financial products and services for low- and moderate-income households in the United States and developing world. Panelists will explore a range of issues, from digital IDs in India to cross-border remittances, faster payments, online lending, consumer autonomy, and privacy.
Michael Barr, Joan and Sanford Weill Dean, Gerald R. Ford School of Public Policy, University of Michigan (moderator)
Pawan Bakhshi, India Country Lead, Financial Services for the Poor, Bill & Melinda Gates Foundation
Kay McGowan, Former Digital Finance Lead, USAID; Adjunct Professor, Georgetown University
Joshua Sledge, Director, Center for Financial Services Innovation
Luz Urrutia, Chief Executive Officer, Opportunity Fund
Panel 5: RegTech: How Can Regulators Be Part of the Solution?
This panel evaluates how regulators might be better equipped to foster innovation and protect consumers, investors, and the financial system as a whole. How can regulators use technology to better improve data collection, analytics, and regulation? How can regulators better encourage innovation?
Elizabeth Jacobs, Senior Advisor, U.S. Office of Financial Research (moderator)
Melissa Koide, Chief Executive Officer, FinRegLab
Moira Vahey, Senior Advisor, Project Catalyst, Consumer Financial Protection Bureau
Haimera Workie, Head of Office of Emerging Regulatory Issues, FINRA
|12:15-1:30 p.m.||Lunch and Networking|
Panel 6: Innovation and Regulation Trade-offs
This panel poses the fundamental threshold question: How should the balance be struck? Panelists will discuss trade-offs between policies aimed to promote innovation and competition and those geared towards maintaining stability and protecting consumers.
Matthew Reed, Chief Counsel, U.S. Office of Financial Research (moderator)
Amar Bhidé, Thomas Schmidheiny Professor, The Fletcher School, Tufts University
Christopher Brummer, Faculty Director, Institute of International Economic Law, Georgetown University Law
Oliver Goodenough, Director, Center for Legal Innovation, Vermont Law School
Richard Berner, Director U.S. Office of Financial Research
Michael S. Barr, Joan and Sanford Weill Dean Gerald R. Ford School of Public Policy University of Michigan