Aims

This module explores how the global financial crisis of the late 2000s substantially transformed the financial sector, sparking a revolution of a new digital era, characterised by technologically-enabled innovations in the provision of financial services. In this context, the module focuses on the interaction between finance and technology, which has given birth to a new ecosystem known as ‘Fintech’. The module analyses the various Fintech activities, discusses how they emerged, how they are linked to the traditional banking services, and how they affect the supply of credit in the economy, the overall economic activity, the level of financial sustainability, and the conduct of monetary policy. Further, it analyses the impact of Fintech on financial stability, and examines the role of data protection and cyber security in the FinTech services industry along with the Regulatory Technology (Regtech) framework and applications.

Outline Of Syllabus

Indicative content:

•Recent technological trends in the financial services industry.
•FinTech transactions, money transfers and payments.
•Digital Finance and Alternative Finance models.
•Cryptocurrencies.
•Blockchain technology.
•Big data.
•FinTech Regulation and RegTech.
•FinTech and financial stability.
•FinTech lending and traditional bank lending.
•FinTech, credit supply, and monetary policy.
•The role of data protection and data security in modern finance.
•Business implications of technology for the financial services industry.
•The sustainability of the FinTech industry.

Teaching Rationale And Relationship

The learning environment consists of lectures and seminars, combined with in-class learning activities.

Lectures are based on formal notes that present, discuss, and analyse the key theories, concepts, tools, and techniques which lie behind the operation of the FinTech industry. Formal notes are supplemented by journal articles, policy and market-based reports.

Seminars illustrate the material covered in lectures and are mainly based on numerical exercises, real-life examples, and case studies to help students to acquire a more practical and day-to-day view of the material covered in lectures.

Assessment Rationale And Relationship

Students will have to take a closed-book written examination at the end of Semester 1. Examination will consist of numerical, practical, and theoretical/conceptual questions. All questions will be based on the material covered in lectures and seminars and also on any additional readings and in-class discussions.