A Theory of Fintech

In this talk, I will give a brief overview of current academic research on Fintech by using tools from operations research and statistics. (1) P2P equity financing: how to design contracts suitable for a P2P equity financing platform with information asymmetry. (2) Robotic financial advising: how to get investor’s risk aversion parameters automatically by asking simple questions, and how to get consistent answers to meet goals of investors, such as retirement planning. (3) Economics of Bitcoin: how to build a general equilibrium model for bitcoin. (4) Data privacy preservation: how to do econometrics based on the encrypted data while still preserving privacy. All the above 4 topics are based on my recent working papers.