Unpacking Smart Law: How Mathematics and Algorithms are Reshaping the Legal Code in the Financial Sector

The avalanche of new technologies and artificial intelligence have accelerated financial innovation, compelling the law to undergo a technological update. This phenomenon extends to the likes of regtech, suptech, regulatory big data, algorithmic supervision, etc. The study aims to demonstrate how these new instruments are, in fact, part of an overarching movement observable in numerous fields; that is, the emergence of a scientific, mathematical, algorithmic law driven by risk and technologies (classified as “Smart Law”). The authors will examine the aforementioned theoretical model and highlight the practical implications for banking and finance law. They conclude on the necessity for a structural collaboration between lawyers and engineers in order to manage the inevitable hybridization of the rule of law and its technological integration.