Corporate Finance in the Age of Fintech: Scenarios and Challenges
By: Nicola Borri
Potential Business Impact:
Makes money systems safer, faster, and clearer.
Blockchain is a technological innovation that has the potential to radically change our financial markets by providing an alternative management approach to the "promise market", which is the foundation of our financial systems. Its disruptive potential also extends to corporate finance, where blockchain is beginning to influence valuation methods and capital allocation strategies, offering new perspectives on how companies are assessed and financed. However, for a new financial architecture based on blockchain and advancements in technology -- what is commonly referred to as Fintech -- to replace, in whole or in part, traditional finance, it will need to overcome significant challenges such as regulation, environmental sustainability, its association with illegal activities, and achieving greater efficiency in cryptocurrency markets. For this reason, the future of Fintech is likely to be more conventional -- yet also more transparent, efficient, and regulated -- ultimately evolving to resemble the traditional finance we know.
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