TSS S12 E9: Financial Data Scientist Michael Imerman on the Risks and Opportunities of Fintech

Michael Imerman, financial data scientist and associate professor of finance at Claremont Graduate University, appears May 9, 2022, on The Sherman Show as he winds down a sabbatical as a visiting scholar to the Federal Reserve Bank of San Francisco. At the San Francisco Fed, he has been advising a dedicated fintech group at the bank of innovations in this field and emerging risks. (Standard disclaimer: Dr. Imerman notes the views and opinions he shares here are his own and do not necessarily reflect the San Francisco Fed or the Federal Reserve system.)

Starting his conversation with hosts Jeffrey Sherman and Samuel Lau (2:51), Dr. Imerman defines fintech as “the collision of emerging technologies and financial services.” While financial services providers have been using information technologies for decades, something different has been occurring over the past 10-15 years. “We’ve had tech companies, both big tech – the Google, Amazon, Facebook, Microsoft, Apple – as well as start-ups moving into this space,” he says. “These are companies that historically have had nothing to do with financial services. Over the past 10 years, they’ve moved into the space that has been traditionally occupied by the incumbents: banks, asset managers, insurance companies.”

Among other developments, Dr. Imerman discusses the “shakeup” posed by “neobanks and challenger banks” (13:05), fintech lending (14:17) and the financial “incumbents catching up” with the fintech challengers (16:33). Dr. Imerman stresses importance of regulatory oversight to ensure consumer protection and manage systemic risk at a time when fintech is accelerating and democratizing accessibility to financial services (20:29). Messrs. Imerman, Sherman and Lau also discuss central bank digital currencies (31:32) and what excites Imerman most about the future of financial tech innovation: quantum computing (36:15).

• This material contains the opinions of the manager as of the date it was recorded and such opinions are subject to change without notice.

• The material represents DoubleLine’s intellectual property. No portion of this presentation may be published, reproduced, transmitted, or rebroadcast in any media in any form without the express written permission of DoubleLine. To receive permission from DoubleLine, please contact [email protected]

• The views and forecasts expressed in any materials on this website are as of the date indicated, are subject to change without notice, may not come to pass and do not represent a recommendation or offer of any particular security, strategy, or investment. DoubleLine has no obligation to provide revised assessments in the event of changed circumstances. There can be no assurance that the strategies described will achieve their objectives and goals.

• DoubleLine® is a registered trademark of DoubleLine Capital LP.

• ©2022 DoubleLine