In his opening keynote at NASAA, Bob Chakravorti gave an overview of the impact of FinTech firms on the financial services industry. He spoke about how these firms are impacting payments, lending, wealth and asset management, and alternative currencies. In addition, he discussed the role of regulation generally and the...
In his presentation at the Sorting the Hype Cycle Colloquium sponsored by Filene and the University of California, Irvine, Bob Chakravorti discussed the intersection between finance and technology and the opportunities in untapped market segments.
In his presentation in Madrid, Spain in April 2017, Bob Chakravorti discussed how the financial sector is rapidly changing because of new products and services brought to market by FinTech firms. Specifically, he discusses certain market segments where new entrants are reducing market frictions. He puts forth how incumbent financial...
Payment cards continue to replace cash and checks in advanced economies. Along with the growth of payment card transactions has come greater scrutiny by public authorities of certain payment network rules along with the level of certain fees. Chakravorti reviews the growing payment card literature and discusses the impact of...
Chakravorti and Jankowski summarize the 2005 Chicago Payments conference. The migration to more efficient payment mechanisms is affected by innovations, incentives, and regulations. While advances in technology have yielded numerous payment method alternatives, many have not been widely adopted. A Chicago Fed conference explored why certain payment innovations have been...
Chakravorti and Kobor provide a framework to study the creation and adoption of innovations by payment providers and processors. The authors identify several motivating factors for banks and nonbanks to invest in payment innovations. In addition, they discuss the evolutionary process of payment innovations from inception to commoditization and recognize...
Chakravorti and Emmons model side payments in a competitive credit‐card market. If competitive retailers absorb the cost of accepting credit cards by charging a higher goods price to everyone, then someone must subsidize convenience users of credit cards to prevent them from defecting to merchants who do not accept cards...
Chakravorti investigates payments system reforms begun by the Bank of Mexico in 1994. The goals of these reforms are to reduce the amount of uncollateralized intraday credit extended by the Bank of Mexico (previously unlimited), to promote a market-based allocation of intraday credit for interbank payments, and to move large-value...
In this article, Chakravorti argues that consumers’ use of newer, less expensive payment alternatives depends on the incentives merchants and payment instrument providers offer, along with consumers’ comfort level and faith in the instruments. Once consumers are comfortable with the newer electronic alternatives, cost of usage, convenience, and frequent-use incentives...