| Statuss(Aktīvs) | Izdruka | Arhīvs(0) | Studiju plāns Vecais plāns | Kursu katalogs | Vēsture |
| Course title | Fintech Business Models |
| Course code | EkonM018 |
| Credit points (ECTS) | 4 |
| Total Hours in Course | 108 |
| Number of hours for lectures | 8 |
| Number of hours for seminars and practical classes | 24 |
| Number of hours for laboratory classes | 0 |
| Independent study hours | 76 |
| Date of course confirmation | 23/10/2024 |
| Responsible Unit | Institute of Economics and Finance |
| Course developers | |
| Ph.D., pētn. Aija Pilvere Ph.D., doc. Līga Feldmane |
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| There is no prerequisite knowledge required for this course | |
| Course abstract | |
| In an era of rapid technological development, the course provides an in-depth understanding of how new technologies are changing the financial services industry. Students will explore the most important technology trends, critically evaluate local and global financial technology business models, strategies and competition in the main market segments (banks, lending, payments, investments, insurance, etc.). Students will have an extended learning experience combining case study analysis and group projects. They will provide students with the theoretical and practical knowledge and analytical skills needed to take advantage of current and future opportunities in the fast-growing FinTech sector.
Course Objective: To provide students with in-depth knowledge and specialized analytical skills to critically assess industry developments, identify and capitalize on existing and emerging market opportunities in the dynamically growing FinTech sector. |
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| Learning outcomes and their assessment | |
| Knowledge.
• Able to critically assess key FinTech trends locally, regionally and globally. This includes: (a) analyzing the impact of FinTech on competitiveness in various financial sectors; (b) assessing the reasons for the differences in different geographical, regulatory and market contexts. Individual works, analysis report, exam. • Able to identify and describe the key technologies applied in FinTech and how these technologies contribute to the development of new business models and opportunities. Participation in lectures and classes; analysis report; exam. Professional skills. • Able to identify and critically evaluate the most important FinTech business models and strategies in key industries. This includes assessing the target's business opportunities, key business model principles, competition, challenges and risks. Participation in lectures and classes; individual works; analysis report; exam. • Able to identify and articulate strategic/business issues in the context of a specific case study, given incomplete information, and make well-reasoned business decisions and recommendations. Case study analysis. General skills. • Able to work in a team. Discussions, group work. • Able to argue and explain complex financial and FinTech decisions and recommendations. Discussions, group work, case study analysis. Competence. • Able to cooperate in a team, identifying a potential strategic business opportunity / market gap in a certain industry. Discussions, group work. •Able to propose an effective, internationally scalable high-level business model and strategy, perform industry and competition analysis. Exam. |
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| Course Content(Calendar) | |
| Lectures (8h)
1.Course overview. Introduction to FinTech, key financial innovations and trends, key technological innovations and trends, Fintech in Latvia. (1h) 2.Payments. Digital payments overview, cross-border remittance, card payments, real-time payments, mobile payments, mobile wallets, open finance, P2P payments, QR code payments. (1h) 3.Digital banking. Incumbent bank services, digital banks, challenger banks and neobanks, banking technologies, banking-as-a-service, embedded finance. (1h) 4.Lending. Online lending overview, types of online lending, buy now, pay later, marketplace lending overview, types of marketplace lending. (1h) 5.Crowfunding. Crowdfunding overview, types of crowdfunding. (1h) 6.Investment, trading and wealth management. Investment vs. trading, wealth management, investment tools, rise of retail investment (GameStop saga), algorithmic trading, robo-advising, investment technologies. (1h) 7.Web3 Finances. Web1 vs. Web2 vs. Web3, blockchain, Web3 wallet, cryptocurrencies, Central Bank digital currencies (CBDC), decentralized finances (DeFi), centralized finances (CeFi), non-fungible tokens (NFT), decentralized autonomous organizations (DAOs), metaverse. (1h) 8.InsurTech. InsurTech overview, InsurTech trends. (1h) Practical works (24h) 1.Payments I: digital payments, cross-border remittance, card payments, real-time payments. Case study: PayPal Merchant Services. (2h) 2.Payments II: mobile payments, mobile wallets, open finance, P2P payments, QR code payments. Case study: PayPal Next Chapter. (2h) 3.Digital banking I: incumbent bank services, digital banks, challenger banks and neobanks. Case study: Revolut. (2h) 4.Digital banking II: banking technologies, banking-as-a-service, embedded finance. Group Work: Build-a-bank. (2h) 5.Lending I: online lending, types of online lending, buy now, pay later. Case study: Klarna and ZIP. (2h) 6.Lending II: marketplace lending, types of marketplace lending. Case study: Mintos walkthrough and Funding Circle. (2h) 7.Crowdfunding: crowdfunding, types of crowdfunding. Case study: KickStarter. (2h) 8.Investment, Trading, Wealth management I: investment vs. trading, wealth management, investment tools, rise of retail investment (GameStop saga). Case study: RobinHood. (2h) 9.Investment, Trading, Wealth management II: algorithmic trading, robo-advising, investment technologies. Case study: Robo-advisor. (2h) 10.Web3 Finances I: Web1 vs. Web2 vs. Web3, blockchain, Web3 wallet, cryptocurrencies, Central Bank digital currencies (CBDC). Case study: Bitcoin. (2h) 11.Web3 Finances II: decentralized finances (DeFi), centralized finances (CeFi), non-fungible tokens (NFT), decentralized autonomous organizations (DAOs), metaverse. Case study: FTX. (2h) 12.InsurTech: InsurTech, InsurTech trends. Case study: Balcia. (2h) |
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| Requirements for awarding credit points | |
| Exam, which is formed from cumulative assessment based on the 4 parts.:
•Participation in classes and discussions, discussing the case examples read (20%) •Practical and group tasks related to the analysis of case examples and the implementation of the creation of a bank, which are completed during the lessons (20%) •Baltic FinTech Analysis Report (20%) •Exam. Final project: the form of a conceptual FinTech business model preparation and presentation (40%) |
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| Description of the organization and tasks of students’ independent work | |
| Independent study of study course materials, case analysis examples and literature sources before each lesson. To independently prepare a final project - preparation of a conceptual financial technology business model and creation of a presentation. Choose a Baltic financial technology company, in coordination with the instructor, and prepare a company analysis report. | |
| Criteria for Evaluating Learning Outcomes | |
| Participation in classes is assessed with pass/fail, a pass is given if the student is familiar with the case and participates in the discussion in class.
The practical task evaluates the group and individual work according to the evaluation procedure specified in the practical assignment and must receive at least 50% of the evaluation in order to be counted. The analysis report of the Baltic Financial Technology Company is evaluated in accordance with the criteria established during the development of the analysis report. It is successfully defended if an assessment of at least 50% is received. The evaluation of the final project can only be carried out if a passing grade has been received for the participation in the classes, the practical works have at least 50% of the grade and the analysis report of the Financial Technology Company has been successfully developed. The criteria and evaluation rules for the final project are determined when the final project is issued. |
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| Compulsory reading | |
| 1.Shrier, D.L., & Pentland, A. (2022). Global Fintech: Financial Innovation in the Connected, https://direct.mit.edu/books/oa-edited-volume/5280/Global-FintechFinancial-Innovation-in-the
2.Fintech 2022 Report, https://dealroom.co/uploaded/2023/01/Fintech-2022-recap.pdf 3.Fintech, Fintech Pulse 2023, https://fla.lv/pulse2023/ 4.Deloitte, Deloitte Insights Embedded finance: customer relationships and value web dynamics, https://www2.deloitte.com/content/dam/Deloitte/us/Documents/finance-transformation/us-the-ecosystem-imperative--embedded-finance.pdf 5.Christensen M., What is Peer-to-Peer (P2P) Lending? How It Works https://p2pmarketdata.com/articles/p2p-lending-explained/ and Christensen M., Crowdfunding Investment: What It Is, How It Works https://p2pmarketdata.com/articles/crowdfunding-investment/ 6.European Commission, Equity crowdfunding, https://single-market-economy.ec.europa.eu/access-finance/guide-crowdfunding/different-types-crowdfunding/equity-crowdfunding_en |
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| Further reading | |
| 1.McKinsey Company, Europe’s fintech opportunity https://www.mckinsey.com/~/media/mckinsey/industries/financial%20services/our%20insights/europes%20fintech%20opportunity/europes-fintech-opportunity-full-report.pdf
2.Gartner, Gartner Top 10 Strategic Technology Trends for 2023, https://www.gartner.com/en/articles/gartner-top-10-strategic-technology-trends-for-2023 3.Global Fintech 2023: Reimagining the Future of Finance, https://web-assets.bcg.com/69/51/f9ce8b47419fb0bb9aeb50a77ee6/bcg-qed-global-fintech-report-2023-reimagining-the-future-of-finance-may-2023.pdf 4.Saetang S., Single Euro Payments Area (SEPA) - Definition &How it Works, https://statrys.com/blog/sepa-payment-guide 5.Taylor S., Apple will be a bank in all but name, https://www.fintechbrainfood.com/p/apple-will-be-a-bank-in-all-but-name 6.Deloitte Insights, PSD2 review – Status of the EU payments market, https://www.deloitte.com/lu/en/Industries/banking-capital-markets/research/psd2-review-eu-payments-market.html 7.To T., The Growing Influence of BigTech Companies in Payments and Financial Services, https://www.edgardunn.com/articles/the-growing-influence-of-bigtech-companies-in-payments-and-financial-services 8.Truelaye, Payments in the EU, https://info.truelayer.com/hubfs/[Marketing]%20Digital%20Brochures/Reports/Payments%20in%20the%20EU%20-%20Building%20better%20User%20Experience%20with%20Open%20Banking%20and%20SEPA%20Instant.pdf 9.Whitesight, Cracking the profitability code of successful digital banks, https://whitesight.net/digital-banks-profitability-2023/ 10.Kucher S., Neobanking 2023, https://www.simon-kucher.com/en/insights/neobanking-2023 11.Six-Group Report, A Deep Dive into Banking-as-a-Service and Embedded Finance, https://www.six-group.com/dam/download/company/report/whitepapers/six-whitepaper-impact-of-technology-on-banking.pdf 12.Whitesight, From iPhone to iBank: Analysing Apple’s Embedded Finance Adventures, https://whitesight.net/analysing-apples-embedded-finance-adventures/ 13.Gupta A., How Klarna Grows, https://www.news.aakashg.com/p/how-klarna-grows 14.Bednorz J., The History of Peer-to-Peer Lending, https://p2pmarketdata.com/articles/p2p-lending-history/ 15.European Commission, Crowdfunding explained, https://single-market-economy.ec.europa.eu/access-finance/guide-crowdfunding/what-crowdfunding/crowdfunding-explained_en 16.Smith T., Crowdfunding: What It Is, How It Works, and Popular Websites, https://www.investopedia.com/terms/c/crowdfunding.asp 17.Binance Research, Full-Year 2023 & Themes for 2024, https://public.bnbstatic.com/static/files/research/full-year-2023-and-themes-for-2024.pdf 18.Caldarelli, G.; Ellul, J. The Blockchain Oracle Problem in Decentralized Finance, https://www.mdpi.com/2076-3417/11/16/7572 19.McKinsey & Company, Opportunities for insurers in a rapidly shifting insurtech market, https://www.mckinsey.com/industries/financial-services/our-insights/insurance-blog/opportunities-for-insurers-in-a-rapidly-shifting-insurtech-market |
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| Notes | |
| Academic Master's study programme "Sustainable Finance" | |