FSI 3023 - Fintech and Financial Services PDF

FSI 3023 - Cryptocurrencies and Artificial Intelligence in AML Financial Services – Investigation and Compliance (FSIT) Evaluation Schedule Tests 40% 2 tests (equally weighted for 20% each) (Week 7 and Week 15) Group assignment 25% 1 group assignment (weighted as 25%) (Due in Week 10 and Week 11) In...

FSI 3023 - Cryptocurrencies and Artificial Intelligence in AML Financial Services – Investigation and Compliance (FSIT) Evaluation Schedule Tests 40% 2 tests (equally weighted for 20% each) (Week 7 and Week 15) Group assignment 25% 1 group assignment (weighted as 25%) (Due in Week 10 and Week 11) Individual assignment - 30% 2 individual projects equally (weighted as 15%) (Due in Week 5 and Week 14) ACFCS Professional Development (weighted as 5%) (Due week 13 and Week 14) 2 Agenda 3 Fintech Video: What is Fintech Fintech Banking Growth of Fintech Reading Material: Technology-led innovation in banking Fintech 4 What is Fintech? Fintech refers to the application of software and hardware to financial services and processes, making them faster, easier to use and more secure. The fintech industry includes everything from payment processing solutions to mobile banking apps. 5 What is Fintech? Fintech is a combination of “financial” and “technology.” It is an all-encompassing expression that refers to technology utilized to enhance, simplify, digitize, or revolutionize conventional financial services. Fintech encompasses software, algorithms, and applications designed for both desktop and mobile platforms. In certain instances, it may also involve hardware, such as internet-connected piggy banks. Fintech platforms facilitate everyday tasks such as depositing checks, transferring funds between accounts, making bill payments, or applying for financial assistance. 6 More about Fintech Businesses depend on fintech for various essential functions, including payment processing, e-commerce transactions, accounting As a result of the Covid-19 pandemic, an increasing number of businesses are embracing fintech to implement contactless payment options and adopt various other technology-driven advancements. 7 Video: What is Fintech 8 Fintech Banking 9 What Is Fintech Banking Banks utilize fintech for both back-end processes, such as behindthe-scenes monitoring of account activity, and consumer-facing solutions, like the app you use to check your account balance. Fintech is also employed by banks for loan underwriting purposes. Individuals leverage fintech to access a wide range of bank services, including making purchases through their smartphones and receiving investment advice on their home computers. 10 Growth of Fintech 11 Growth in Fintech 12 Growth in Fintech 13 Class discussion: The Fintech 50 14 Some stats The CompTIA’s Cyberprovinces 2019 Analysis continues to report that: Canada’s tech sector provides high-paying jobs, with an average salary of $78,070 compared to the average private sector salary of approximately $51,794. There are approximately 70,189 tech business establishments across Canada. Nearly two-thirds of Canadian tech firms are based in Ontario and Quebec. 15 Why is fintech growing? According to McKinsey, during the first few months of COVID-19, the use of mobile banking channels increased by 20-50%, and it's predicted to remain this way even after the pandemic is over. Another study from McKinsey reports that when it comes to digital banking, consumers are demanding a more flexible journey. 71% prefer multi-channel interactions and 25% want a fully digitally-enabled private banking journey with remote human assistance available when needed. 16 Why is fintech growing? To meet customers’ demand for speed, efficiency, and a better user experience, financial providers need to integrate technology into their services. This will enable them to offer the frictionless experience consumers have come to expect. If retail giants like Amazon let customers complete a purchase in seconds, it shouldn’t require a face-to-face meeting to open a new bank account. Fintech is bridging the gap between what traditional banks offer and what the modern consumer has grown to expect. The industry has experienced massive growth. 17 Reading Material: Technology-led innovation in banking 18 Recap 19 Fintech Video: What is Fintech Fintech Banking Growth of Fintech Reading Material: Technology-led innovation in banking Q&A 20 Q&A 21