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Faculty at Penn's Wharton School have come together with finance professor Itay Goldstein to present a special podcast series. This series delves deep into the various aspects shaping the future of finance. Let's explore the different episodes and the valuable insights they offer.

Uncover the Future of Finance with Penn's Wharton School

The Future of Banking

In this episode, Itay Goldstein is joined by Hyun Song Shin, the economic adviser and head of research at the Bank for International Settlements, and Loretta Mester, the former President and CEO of the Federal Reserve Bank of Cleveland. They focus on the 2023 banking crisis and analyze the collapse of Credit Suisse, Silicon Valley Bank, and other mid-level banks. Mester emphasizes the importance of a healthy banking system, stating that it is crucial for monetary policy to transmit through the economy when financial markets are not functioning properly. She also highlights the need for banks to remain healthy and continue providing credit extension to support the economy.Another aspect discussed is the regulatory gaps and future protections for the banking system. The experts explore how these factors can help prevent similar crises in the future and ensure the stability of the financial sector.

New Phenomena in Behavioral and Social Investing

In this episode, Goldstein and Bloomberg columnist Matt Levine examine the GameStop and AMC meme stock sagas and the influence of social media on market events. Levine points out the interesting phenomenon of GameStop moving like a coordinated social movement for several months, bringing it closer to the financial mainstream. He also compares it to Bitcoin, where its social adoption drives its value.The discussion emphasizes the role of behavioral finance in shaping investor actions and how social trends can disrupt financial markets globally. It shows how these phenomena are not just isolated events but have a significant impact on the financial world.

The Regulatory Challenges of AI in Finance

Here, Goldstein is joined by Tobias Adrian, the financial counselor and director of the International Monetary Fund, to explore the regulatory challenges posed by the rapid adoption of artificial intelligence in finance. Adrian discusses the concerns regarding accountability and decision-making accuracy in traditional automated trading and how it is even more complex in generative AI.The conversation delves into the emerging risks AI introduces to the financial sector and the steps regulatory bodies are taking to mitigate these risks. It highlights the need for a balance between innovation and stability in global financial markets.

The Future of Financial Technology

Fintech leaders Alesia Haas, the CFO of Coinbase, and Michelle Lai, the board member of Electric Coin Co., discuss the rapid changes in financial technology. They examine blockchain innovations and the impact of decentralized finance on digital currencies.Haas emphasizes the shift from the internet to on-chain transactions and how this is the next generation of the internet. She believes that crypto blockchains will transform the way we transact and bring value and data closer together. Lai also shares her insights on how Fintech is set to evolve in the coming years and the potential it holds for the future.For a full list of episodes, visit “The Future of Finance” series page.