FinTech Revision Questions PDF

FinTech and Innovation Revision Questions for mid-term test School of Accounting and Finance, Taylor’s University, Malaysia Disclaimer: All teaching and learning materials, including slides, handouts, videos, assessments, etc., are the properties of Taylor’s University...

FinTech and Innovation Revision Questions for mid-term test School of Accounting and Finance, Taylor’s University, Malaysia Disclaimer: All teaching and learning materials, including slides, handouts, videos, assessments, etc., are the properties of Taylor’s University and are meant solely for teaching and learning activities, which are held only for Taylor’s University’s registered students. You are not permitted to publish or share the materials without the lecturer’s consent. It is important to note that TIMeS is the official e-learning platform for Taylor’s University students. Mid-term test format 20 MCQs, and 2 short essays Topic coverage: Topic 1 – 5 Refer to lecture notes, weekly readings and tutorial slides 06 November 2024 (Wednesday) 3.00 PM, during lecture slot (1 hour) Venue: LT09 Physical test, hand-written, bring your own pencils for MCQ sheet and pens to write down your answer on the question paper that will be provided to you Answer key 1. C 2. D 3. A 4. C 5. C 6. B 7. C 8. A 9. C 10.D Answer key points for short essay 1 mark for each key word, 2-3 marks for elaboration/discussion and examples 1. Explain the factors that contributed to the rapid development in FinTech in Malaysia Keywords: Higher utilisation rate of mobile devices (Falling prices for smartphones and broadband services have increased the digitally active FinTech target consumers/population ) Exposure to new and innovative financial products and services Millennials – the largest population cohort Growing economy with expanding working population (demand for financial services and alternative financial solutions 2. Is Fintech a threat or an opportunity for financial institutions? Discuss your answer based on this statement and you are encouraged to use examples to support your answer. FinTech disrupts many financial services activities, such as money Keywords: transfers, depositing a check with your smartphone, by-passing a bank branch to apply for credit/loan, raising money for a business start-up, or managing your investments, generally without the assistance of a person. However, most banks viewed the FinTech world as an opportunity to collaborate. Banks are embracing new technology and digitization New competitors in the industry, but FinTech will bring added capabilities to advance financial services. 3. Discuss three (3) scenarios in which Fintech industry and applications could impact traditional financial institutions. Keywords: Scenario 1 – Better bank – digitization and modernization of banks, innovative payment services and digitize lending process Scenario 2 – New bank – technology driven banks, with full service “built-for-digital” banking platform, e.g. Atom Bank* in the UK, WeBank in China Scenario 3 – Distributed bank – modularized financial services, e.g. adoption of mobile wallets developed by third party technology companies Scenario 4 – Relegated bank – banks become commoditized service providers and direct customer relationship to other service providers Scenario 5 – Disintermediated bank – banks becoming irrelevant because there is no need for intermediation, customers interact directly with service providers, e.g. peer-to-peer lending platforms 4. Discuss three (3) main technological innovations that have contributed to the development of new products and services in the Fintech industry. You may use examples to support your answer. Keywords: Significant technological advances – e.g. increase in processing capacity such as the innovation of GPU Cloud computing – ability to store data that can be accessible from any location (with network connection) AI & machine learning – big data analytics and chatbot applications 5. What is blockchain? Discuss one application of blockchain technology that you know. Short explanation on blockchain process flow from Keywords: Lecture 3 Students can discuss the application of cryptocurrency or other examples as discussed in lecture/tutorial classes. State the name of the blockchain application (example: cryptocurrency) Brief explanation on how it works Connect the discussion with blockchain technology features and processes Benefits and limitations