Robert Merton: Trust is the Foundation of Financial Development in the Digital Era

On October 24th, 2018, the second “Global Programmer's Festival” opened in Xi 'an, bringing together scientific and financial experts from various countries and regions around the world to contribute their wisdom to development in the digital era around the theme of “Coding the Society”.

At the opening ceremony, economist and Nobel Memorial Prize in Economic Sciences laureate Robert Morten presented a speech on the topic of “Financial Innovation in the Era of Digital Transformation”. He said that with continuous innovation in science and technology, the financial sector has been transformed rapidly. The cost of financial services have been substantially reduced while the range of services on offer has been expanded.

In referring to the development of financial integration, he said, “a sound and well-functioning financial system is essential to global economic development. If the economies along ‘The Belt and Road’ are to be integrated, adopting a single currency is far from enough, the financial systems need to cooperate and develop together. ”

When speaking on the issue of risk management in financial innovation and integration, he said, “ no matter in banks, insurance or securities, trust is the most fundamental factor in effective operation. Trust comes from the people and institutions who provide financial services and the regulatory mechanisms that maintain the order of the financial market. The financial enterprises and the supervisory systems must coordinate effectively and cooperate closely to build a foundation of trust in order to ensure that the financial system has the ability to bear risks and maintain steady and healthy development. "

Robert Merton believes that the demand for new financial services and the implementation of “The Belt and Road Initiative” will bring immense opportunities to China. In the future, through the development of a financial trust system and the digital economy, China and the world will usher in a better era.(Kevin)