Podcast
Questions and Answers
What best describes the impact of technology-driven banks like Atom Bank and WeBank on traditional financial institutions?
What best describes the impact of technology-driven banks like Atom Bank and WeBank on traditional financial institutions?
Which of the following innovations significantly contributed to the development of new products and services in the Fintech industry?
Which of the following innovations significantly contributed to the development of new products and services in the Fintech industry?
What is a primary characteristic of distributed banks utilizing mobile wallets developed by third-party technology companies?
What is a primary characteristic of distributed banks utilizing mobile wallets developed by third-party technology companies?
In the context of the fintech industry, what does the term 'relegated bank' refer to?
In the context of the fintech industry, what does the term 'relegated bank' refer to?
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What is one potential drawback of blockchain technology in financial applications?
What is one potential drawback of blockchain technology in financial applications?
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What factor significantly contributed to the growth of FinTech in Malaysia?
What factor significantly contributed to the growth of FinTech in Malaysia?
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Which population cohort is identified as the largest contributor to the FinTech market in Malaysia?
Which population cohort is identified as the largest contributor to the FinTech market in Malaysia?
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How do many financial institutions view the rise of FinTech?
How do many financial institutions view the rise of FinTech?
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What is one way FinTech is disrupting traditional financial services?
What is one way FinTech is disrupting traditional financial services?
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What economic factor is mentioned as contributing to the demand for FinTech solutions?
What economic factor is mentioned as contributing to the demand for FinTech solutions?
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Which of the following is NOT associated with FinTech's impact on financial services?
Which of the following is NOT associated with FinTech's impact on financial services?
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What technological development is banks embracing due to FinTech?
What technological development is banks embracing due to FinTech?
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Which of the following does NOT represent a service transformed by FinTech?
Which of the following does NOT represent a service transformed by FinTech?
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Study Notes
FinTech and Innovation Mid-Term Test
- Format: 20 multiple-choice questions (MCQs) and 2 short essays
- Coverage: Topics 1-5 from lecture notes, weekly readings, and tutorial slides
- Date: 06 November 2024 (Wednesday), 3:00 PM during lecture slot (1 hour)
- Venue: LT09
- Instructions: Physical test, handwritten, bring pencils for MCQ sheet and pens for essay answers
Factors Contributing to FinTech Development in Malaysia
- Increased Mobile Device Usage: Falling smartphone and broadband prices have made digital access more affordable, expanding the FinTech target audience.
- Exposure to Novel Financial Products and Services: Consumers are becoming accustomed to innovative financial solutions.
- Millennials as a Key Demographic: Millennials, the largest population cohort, are digitally savvy and drive demand for FinTech services.
- Growing Economy and Workforce: Expanding economic activity and workforce fuel demand for financial services, including alternative solutions.
FinTech: Threat or Opportunity for Financial Institutions?
- Disruptive Potential: FinTech disrupts traditional financial service activities such as money transfers, check deposits, loan applications, fundraising, and investment management.
- Collaboration and Innovation: Many banks view FinTech as an opportunity to collaborate and adopt new technologies.
- Competitive Landscape: While new competitors arise, FinTech also offers banks additional capabilities to enhance their services.
FinTech's Impact on Traditional Financial Institutions
- Scenario 1: Better Bank: Digitization and modernization of banks, including innovative payment services and digitized lending processes.
- Scenario 2: New Bank: Technology-driven banks with full-service "built-for-digital" platforms (e.g., Atom Bank in the UK, WeBank in China).
- Scenario 3: Distributed Bank: Modularized financial services, such as the adoption of mobile wallets developed by third-party technology companies.
- Scenario 4: Relegated Bank: Banks become commoditized service providers, and direct customer relationships shift to other service providers.
- Scenario 5: Disintermediated Bank: Banks lose relevance as customers interact directly with service providers, bypassing intermediaries (e.g., peer-to-peer lending platforms).
Technological Innovations Driving FinTech
- Increased Processing Capacity: Advancements in GPU technology have significantly enhanced processing capabilities.
- Cloud Computing: Enables data storage and access from any location with an internet connection.
- AI and Machine Learning: Facilitates big data analytics and chatbot applications.
Blockchain Technology
- Definition: A decentralized, distributed ledger technology that records transactions across a network of computers securely and transparently.
- Application Examples: Cryptocurrency (e.g., Bitcoin), supply chain management, and digital identity.
- Process Flow: Transactions are validated and added to the blockchain in blocks, creating a chronological record that is tamper-proof.
- Benefits: Transparency, security, immutability, and decentralization.
- Limitations: Scalability, regulatory uncertainty, and energy consumption.
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Description
Prepare for your FinTech and Innovation mid-term test covering topics from lecture notes, readings, and tutorials. This test includes 20 multiple-choice questions and 2 short essays that will challenge your understanding of key factors influencing FinTech development in Malaysia. Ensure you're ready for November 6, 2024!
