Open course ware

[MUSIC PLAYING] GARY GENSLER: We can use technology to make finance more inclusive and more accessible to many more millions of people in our country and many more hundreds of millions of people around the globe. SARAH HANSEN: Today on Chalk Radio, modern money. In this episode, we're taking a look at 15.S08 FinTech: Shaping the Financial World. This is a course, about money and how it works in a constantly changing digital environment. GARY GENSLER: My research and teaching is all about the intersection between finance and technology. And what better place to do it but at MIT? SARAH HANSEN: Our guest today is Professor Gary Gensler. He co-directs MIT's FinTech@CSAIL, which stands for Computer Science and AI Lab. Professor Gensler has a unique perspective in that he's teaching a subject that's continuously evolving. So how does an educator teach something that changes so much and so rapidly? How do you prepare students to work in a new and, oftentimes, vas...

[SQUEAKING] [RUSTLING] [CLICKING] GARY GENSLER: Welcome back to FinTech, Shaping the World of Finance. Today, we're going to review developments in finance and technology related to capital markets. And since there's so many pieces with capital markets, I've chosen to take the time to dig more deeply into two areas, online brokerage, or really mobile brokerage applications, and wealth advising through robo advising. But we'll touch upon the broader capital markets as well as a little touch on cryptocurrencies because some of the most successful financial technology companies in the capital markets have actually been crypto exchanges and some of the endeavors around crypto markets. So if I just take a moment just to share my screen and share some slides, and we'll get going here. Online brokerage, this is not a new tradition. It goes back actually several decades. And so then the question is, what's happened here in the last six or eight years? What...

[RUSTLING] [CLICKING] [SQUEAKING] GARY GENSLER: Welcome to FinTech-- Shaping the World of Finance. We're going to talk about challenger banks today. And we've chatted in our last session about credit, payment before that. But challenger banks is an interesting topic that I thought we should take a moment and just talk about challenger banks. This is this concept built upon building a bank that's internet-only, building a bank that has no bricks and mortar office. Now, it's not actually a new concept. And in this lecture, we're going to talk a little bit about what was happening even then in the 1990s and the 2000s when online banking started. But this term, challenger bank, and another related term, neobanks, relates to something a little bit later. Ally Bank, which used to be the old auto lending part of General Motors, the largest-- at one point, at one point the largest auto manufacturer in the US-- Ally Bank in 2009 decided it was not just going to...