Whitman Professor Testifies on the Impact of Fintech Services

On March 7, the Whitman School’s Assistant Professor of Finance Yu Shan testified in front of the New York State Assembly’s committees on banking and science and technology about the impact of financial technology (fintech) services and their roles in the state banking system.

Shan explained how the idea behind open banking is data autonomy, which gives individuals control over their own data. It promises to establish a level playing field that fosters more competition and innovation. And, it contributes to a more resilient financial system with improved financial knowledge and individuals’ access to credit, as well as the ability for small and mid-sized enterprises to form financial relationships outside of traditional banks. However, Shan stated that because the technical foundation of open banking is open API, it is a prime target for cyberattacks. He emphasized the need to address cyber, privacy and legal challenges to realize the full potential of open banking, citing research that showed a 244% increase in unique cyberattackers between the first and second half of 2022.