Richard Thakor and Robert C. Merton, National Bureau of Economic Research working paper w24778.
Richard Thakor & Robert Merton.
Keynote Address for the Dr. R. H. Patil Memorial Lecture, Mumbai, India
Robert C. Merton, Arun Muralidhar, Rui Seybert P. Ferreira
SSRN Electronic Journal DOI: 10.2139/ssrn.3350107
From the ARFE-MIT-NYU Conference
The financial crisis led to a loss of trust in providers, regulators, and financial innovation among consumers, Merton observes. Some have proposed technology can stand in for trust, but he says fintech cannot create trust or succeed without it. Two things, however, can substitute for trust: verification and transparency. Some forms of fintech can provide verification, but financial advice tends to be opaque rather than transparent. Merton also discusses data showing retail investors as less satisfied with cost disclosures and performance from active portfolio managers than institutional investors.