UMich hosts first Future of Fintech conference

About 60 finance industry scholars and professionals gathered in the Tauber Colloquium of the Ross School of Business Friday afternoon for the Future of Fintech conference. The conference focused on the possible roles of financial technology and artificial intelligence in the future of the finance and banking industries. Organized by the University of Michigan Center on Finance, Law & Policy and the Michigan Ross Fintech Initiative, the event consisted of the presentation of four recent research papers and panel discussions on the papers’ findings and real-world implications.

In the opening remarks, Tom Buchmueller, senior associate dean for Faculty and Research at the Business School, welcomed attendees to the conference and highlighted the importance of bringing experts together for these kinds of discussions.

“As a leading public institution, the University of Michigan has an important role to play in bringing together researchers, policymakers and leaders of industry to talk about important societal issues,” Buchmueller said. “It’s this type of interdisciplinary project that makes the University of Michigan very unique and special.”

Researchers then presented on the topics of consumer protection, open banking, artificial intelligence and financial inclusion. At the request of event organizers to preserve research integrity, The Michigan Daily will not be quoting these panel discussions. 

The first paper, presented by Ansgar Walther, associate professor of finance at Imperial College London, focused on the potential impacts of machine learning on credit markets. Following a panel discussion, the second paper was then presented by Greg Buchak, assistant professor of finance at Stanford University, on the practice of open banking, or sharing financial information with third parties. The third paper, presented by Isil Erel, professor of finance at The Ohio State University, provided strategies to reduce disparities in access to financial services for marginalized communities. The final paper of the conference, presented by Wei Jiang, professor of finance at Emory University, focused on how companies can change their reporting of financial data in response to the rise of artificial intelligence. 

In his remarks at the event, Buchmueller highlighted the potential of these new technologies while also warning attendees about their possible consequences. Buchmueller said that although advancements in financial technology can spur progress in the banking industry, they may also result in discrimination against marginalized groups because of algorithmic bias.

“I think there’s lots of reasons to see the promise of these new technologies, both for financial inclusion and to create products that create consumer value at the same time,” Buchmueller said. “Obviously, we need to be alert to possible unintended consequences especially as it relates to diversity and inclusion.”

Nadya Malenko, director of the Michigan Ross Fintech Initiative, said the conference was intended to highlight topics that are often overshadowed. 

“We asked ourselves what conversations are not happening enough … and we realized that cryptocurrency was dominating the media coverage in a way that prevented any other important financial technologies from being discussed,” Malenko said. “These technologies have important policy consequences.”

Jeremy Kress, co-director of the Center on Finance, Law & Policy, led the planning of the conference and thanked the event team and their partners in his remarks for organizing Friday’s event. 

“I want to say thank you to the Ford School staff who are volunteering today downstairs at the registration table to make sure that everybody finds where they’re going,” Kress said. “I also want to say thank you to Law School staff who have been incredibly helpful throughout this whole process.”

Summer News Editor Mary Corey can be reached at mcorey@umich.edu.