Defining FinTech with Michael Imerman, Ph.D.
Join Jonathan Treussard, Ph.D. for a thoughtful conversation with Michael Imerman, Ph.D. — Professor of Finance at UC Irvine and author of The Economics of FinTech (2025).
They talk about what truly counts as FinTech, map the ecosystem across verticals and horizontals, trace the post‑GFC innovation cycle, and separate durable signal from hype across AI, cloud, and blockchain.
They also explore inclusion, alternative data, and fairness in credit decisions, and close with teaching, purpose, and the skills that create day‑one value in finance.
Key takeaways — Beyond the Hype
FinTech = financial infrastructure, not headlines
The core value shows up in the “plumbing”: moving money, underwriting credit, managing risk, and delivering wealth and insurance services. The current force multipliers are AI, cloud, and data pipelines spanning multiple sub‑sectors.
From GFC aftermath to a new capability set
After the crisis, incumbents went risk‑off while mobile, cloud, and big data matured. Tech platforms stepped into intermediation tasks incumbents pulled back from, creating durable, system‑level improvements rather than one‑off fads.
Practical wins outlast hype
Look for faster settlement and reconciliation, smarter data‑driven underwriting, cleaner collateral tracking, and lower operating costs. These compounding efficiencies are where real value accrues.
AI’s promise and responsibility
AI expands access and speed, surfacing creditworthy borrowers and personalizing decisions. But alternative data can proxy for protected traits, so fairness, governance, and explainability are essential to avoid hidden bias.
Regulation should face forward, not backward
Crises trigger rear‑view rules. Better oversight focuses on how models behave, what data they use, and the outcomes they produce—supporting innovation while protecting consumers and markets.
Digital assets: specific tools, narrow scope
Treat tokens as digital commodities, not money, as Dr. Imerman puts it. Blockchain can help in targeted workflows like secured lending and collateral registries, improving transparency and reducing fraud, but it’s one piece of a broader toolkit.
Why it matters for sophisticated investors:
FinTech’s value today is infrastructure, not spectacle. The enduring societal opportunities are in AI‑ and cloud‑enabled workflows that improve payments, underwriting, wealth operations, insurance, and the “horizontal” functions—risk, valuation, compliance. Measurable gains are likely to come from faster reconciliation, clearer collateral tracking, and data‑driven decisions, paired with governance that mitigates bias. And a long shelf-life principle to keep in mind: watch how crises and regulation reshape the plumbing of money, and who is put on the backfoot in delivering value-creating solutions to today’s challenges.
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DISCLAIMER: The content of ”Treussard Talks” is for informational purposes only and should not be considered as financial advice. The views expressed are those of Jonathan Treussard and his guests and do not necessarily reflect the opinions of Treussard Capital Management or its affiliates. Listeners should consult with their own financial advisors before making any investment decisions. Go to treussard.com for additional disclaimers.