Télécom Paris, University of Paris II Panthéon-Assas, Institut Louis Bachelier, Groupement des Cartes Bancaires (CB), Caisse des Dépôts and INSEE are partners in the Digital Finance Research Chair. This chair is co-directed by David Bounie, professor at Télécom Paris, and Marianne Verdier, professor at the University of Paris II Panthéon-Assas.
The objective of the Digital Finance Chair is to carry out research in all the innovations, services, products and organizations in digital computing that may impact the work of financial intermediaries.
As services have become digital, the banking and insurance sector has seen many innovations emerge. They apply to both retail banking and the structuring of interactions among intermediaries. Innovations are introduced by players in the sector and also by new companies, known as fintechs. The economic and social impact of these new technologies is significant and should be monitored closely.
4 research axis
Data, digital payment and predictive analysis
The bank card has become a preferred means of payment. In terms of value, card spending at the point of sale accounts for more than half of total consumer spending, generating a wealth of data on consumers and businesses, economic activity by department, type of business, etc. This data can be used for several purposes. For example, to predict the evolution of final consumer spending and GDP in France, to build more localized models of economic growth (region, sector of activity, etc.), to help the economic growth of geographical areas through the development of bank cards in certain sectors and regions, or to help the financial inclusion of certain populations or SMEs.
Artificial intelligence in banking and insurance
Advances in « artificial intelligence » research have led to the development of advanced methods for analyzing large amounts of data and new methods for statistical learning. These technologies are transforming the demand for financial services by customers, the production and distribution of services by banks (supply), competition (lower market entry costs for new entrants) and the regulation of competing players (better knowledge of the players, meeting the regulator’s requirements). The research of the Digital Finance Chair focuses on AI technologies in banking, with questions centered on algorithms such as interpretability and explicability, bias and liability, and research on employment, productivity and competitiveness, pricing of financial services and regulation of artificial intelligence.
Financial inclusion and economic development
Access to financial services is crucial for economic development. Current and savings accounts allow households to secure their cash balances, carry out transactions using payment instruments, smooth their income and consumption in the face of economic shocks, and finance investments. Access is particularly crucial for poorer households, who are more often constrained and exposed more frequently to unpredictable income shocks. Developed countries have started to pay increasing attention to this issue, and the European Union has placed the reduction of financial exclusion among its strategic objectives since 2021.
Blockchain, cryptocurrencies and central bank digital currency
Distributed registry technology has the potential to profoundly transform the financial system. Blockchain, a particular distributed registry technology, allows transactions to be validated and recorded digitally in a decentralized and secure network. There are many applications for this technology in banking and insurance, such as payments, crypto-asset exchanges, fund raising and intelligent contracts. The possible impacts of these technologies are difficult to apprehend and the Chair proposes to focus on four themes: the economics of these technologies, financial disintermediation (Initial Coin Offerings and cryptomoney), digital currencies for central banks, and the regulation of these technologies.
Industrial Partners
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