FINTECH K31

March 30, 2021 (Tuesday)

Toledo, N.
Department of Financial Management, De La Salle University
AGENDA

• Reminders
• Recap: Technology Disruptions Enabling FinTech (Pt.1)
• 1G to 5G
• Mobile Phones
• NFC
• QR
• RFID
• Discussion on Cloud Computing and API (Tech disruptions enabling FinTech Pt. 2)
• Exercise
• Group Presentation Guidelines
• Group Term Paper Guidelines
2
Reminders

• No classes on Thursday, April 1 (Holy Thursday)

• Independent learning week on the 9th week (week of April 26th)

• Group presentations is scheduled on May 4, 6, 11

• Next discussion: BlockChain (April 4 - Tuesday)

• Submission of take-home exercise (re this session) is on April 4 - Tuesday,

4:00 pm

Image source: fintechnews.sg 3

Disruptions Enabling FinTech Innovations
Overview

• Computing capability

• High networks speed

• Mobile devices

• Sensors

• Embedded devices

• IoT

• API-fication

• Blockchain
4
1G to 5G Networks

• 1G, 2G, 3G, and 4G networks (differences and

development)

• Capability of the telecom industry to transmit

information at high speed - crucial to enable finch

• Race between US, China, South Korea, and Japan -

also top finch hubs? (Check)

• To develop critical applications, including artificial

intelligence, autonomous transportation, virtual
reality, real-time healthcare, and Industry 4.0
manufacturing technology
Infographic source: UC San Diego
5
Mobile Applications and Smartphones

• Merita Bank of Finland, first • iPhone App for the Orange

mobile phone-based banking Credit Card
service
Image source: fintechnews.sg
Image source: braclay.com 6
Mobile Applications and Smartphones
Transforming the Customer Experience

Image source: bluebite.com

7
Mobile Applications and Smartphones
Transforming the Customer Experience

Image source: ecom-ex.com 8

Mobile Applications and Smartphones
Transforming the Customer

Image source: bluetooth.com

9
Mobile Applications and Smartphones
App Stores Helping FinTechs Expand Globally

Image source: vulcanpost.com

Image source: businessofapps.com
10
 FinTech
Technology Disruptions Enabling FinTech Pt. 2

Toledo, N.
Cloud Computing

• The Cloud

• Where’s the cloud exactly?

• Classification (by location

and by services

• Characteristics

• Need and Relevance

• Risks and Concerns

• Advantages/Disadvantages

• Platforms

• FinTech and cloud services

Image source: textlinks.com
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Cloud Computing

• Cloud computing is a technology that

uses the internet and central remote
servers to maintain data and
applications.

• Cloud computing allows consumers and

businesses to use applications without
installation and access their personal
files at any computer with internet
access.

• Cloud computing allows for much more

efficient computing by centralizing
storage, memory, processing and
bandwidth.

Image source: medium.com

13
Cloud Computing
How does it work? Where’s the cloud?

• Cloud service provider -

Partners - End-user

• Front-end (users), Back-

end (software and hardware
architecture)

Image source: conceptdraw.com

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Cloud Computing
Classification by location / deployment models

Image source: medim.com

15
Cloud Computing
Classification by services

Image source: bigcommerce.com

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Cloud Computing
Characteristics

Image source: xen.co.ke

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Cloud Computing
What is the need and why does it matter?

• In here, let’s listen

to a video material
from Accenture

• https://youtu.be/
p1Nr03gtkyU

Image source: Why cloud matters?

18
Cloud Computing
Risks and Concerns

19
Cloud Computing
Advantages and Disadvantages

Image source: intellipaat.com

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Cloud Computing
Platforms

Image source: medium.com

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Choosing a Cloud Service

Image source: techcrunch.com

Infographic source: cloudsigma.com
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Cloud Computing
FinTechs leveraging cloud computing services

• Clients can be served faster

• Scalability and flexibility are increased

• Efficiency is increased

• Cost reduction

• Improved client relationships

• Financial service get closer to clients

• Achieve global compliance

Icon source: surang, flaticon.com
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Cloud Computing
FinTechs leveraging cloud computing services

• Scale processing capacity quickly

• Doesn’t require upfront investment,

pay per use

• Fine-tune product offerings according

to user demand in real-time

• More flexible compared to legacy IT

systems

Image source: learn.g2.com

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API-fication

• API

• API economy

• PSD2

• How FinTech use API

• FinTech Enabling Payments

Leveraging API

• Proprietary Platforms

• Extending Wealth
Management
Image source: radware.com 25
API-fication

• The process of API-

fication involves
bundling the respective
business functions into
a defined number of
interfaces. These
interfaces are then
exposed using certain
protocols and products
on the cloud.

• API economy
Image source: Rockwell (2011)
26
API-fication
FinTechs Monetizing Their Platforms through API-fication
Lifecycle of an API Economy
• PSD2, a payment service
directive designed by the
European Union countries is
expected to revolutionize the
payment industry.

• The compliance for the same

would mean that all the
financial enterprises would
have to make the requisite
payment-related functionality
and data available as APIs, to
be used by third party.
Image source:IBM Redbook 27
API-fication
Powered by PSD2, FinTechs Have an Exciting Future

https://www.youtube.com/watch?v=sVcW_P3lkZs

https://www.youtube.com/watch?v=3fJY7rrXHmE Video sources: YouTube.com 28

API-fication
Powered by PSD2, FinTechs Have an Exciting Future

“With the PSD2

regulation, access
to accounts and
payment services
through open
APIs will result in
new interaction
models”

Image source: Accenture (2016)

29
API-fication
FinTechs Enabling Payment Integration Leveraging API-fication

• Some of the large payment providers

and wallet services have exposed
their payment APIs for their partners
and customers to use them. These
APIs would be typically used after a
user has completed his/her shopping
on an e-commerce site and wants to
pay using these payment providers or
wallet services.

• APIs integrate ACH payments into the

application/app owner platform easy
and seamless while managing fraud
and compliance considerations.
Image source: finovate
30
API-fication
FinTechs Monetizing Their Platforms through API-fication

• Plaid Exchange, the company wants

to help financial institutions directly so
they can build and maintain an API
that other developers can use

• Also known for its ACH (Automated

Clearing House)

• It allows FIs to build new services that

connect directly with the main bank
account through the API

• Companies would be able to see if

connections are working fine, which
would make it much easier to identify
Image source: ph.news.yahoo.com
issues with the infrastructure
31
API-fication
FinTechs Extending Their Wealth Management Platforms

• A company that started as a

wealth management
platform, created own sets
of APIs to access market
data

• It currently has 50 Web

services, offer more than
1,000 APIs, serve more than
1 trillion API calls annually
and count 1,000 innovative
companies as their clients.

Image source: xignite.com

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API-fication
FinTechs Leveraging API-fication to Offer Proprietary Platforms

• The API management

solution in the API platform

• typically comprises features

that enable an API provider
organization to manage its
API users.

• It also enables the API

provider to create a portal
for the sign in of API users
and manage their security
credentials.
Image source:datamation.com
33
API-fication
FinTechs Leveraging API-fication to Offer Proprietary Platforms

• The API Gateway Solution

• Provides a wide variety of

features for APIs, messaging, file
transfer, security integration and
mobile support.

• Provides typical infrastructure

for authentication, authorization
and other identity and security
services and policies.

• Provides for protection services

like protection from malformed
request attacks, etc.
Image source: microsoft.com
34
API-fication
How FinTechs are using APIs

1. Payment Processing

2. Peer-to-Peer Programs

3. Investment Management

4. White Labelling

5. Regulation

Image source: medici.com

35
 APIs, banks, and
fintechs… What now?

Image source: forbes.com

36
Major sources

Arjunwadkar, P. (2018). FinTech: The Technology Driving Disruption in the Financial Services Industry. CRC Press.

Leading cloud service providers:

IBM,
AWS,
Google Cloud

37
Exercise
Cloud Computing and APIs

In approx. 800 words, how are cloud computing and APIs related? Explain and
cite at least 3 (company) case examples.

Submission via AnimoSpace (Assignments), on or before April 6 (Tuesday),

4:00 pm

38
Group Presentation (May 2021)
FinTech business case

Choose 1 FinTech company and post in the group discussion:

- No repetition of FinTech companies

- First-come-first-serve

You will present on topics/issues such as the following but not limited to:

- How the fintech company works including relevance

- Identify the technologies they use and how they utilise it

- Which banks/companies are they working with?

- What improvements should the FinTech company consider?

- How does the fintech company impact the different sub-industries of Finance (Lending, Payments, Wealth Management, etc.)

You will have partner groups: Groups 1 and 3; Groups 2 and 4 (this will be part of class participation):

- Partner groups are required to participate actively during their assigned group’s presentation

- Ask questions, comment on the presentation, and suggest improvements on the assigned groups presentation

39
Guidelines
Presentation

Pre-presentation
• Use respectable sources/references

• It should tackle historical and current landscape of the topic/company/ Introduction (background of the topic/
company)
industry

Body topic 1
• It should be current and relevant (eg. local, regional, global)

Body, topic 2
• Have you accomplished the outline? Body, topic 3
During presentation Body, topic 4 etc.
• Make sure that your presentation is ready. If you will present a video, make Conclusion (opportunities, recommendations,
sure that the “audio” is also shared. Plan for back-ups, just in case, the and future trends)
speaker gets disconnected

• You are given 30 min to present your topic

Post presentation
• Those who are done presenting should:

• Submit a copy of their presentation

• Accomplish the peer evaluation - this will be uploaded in AnimoSpace

• The group presentation is 20% of your grade

40
Group Presentation
Schedule of Presentation (as of March 30, 2021)

Schedule of Presentation Partner Group

Group 1 : May 4, 2021 Group 4

Partner groups are

Group 2 : May 4, 2021 Group 5 required to participate
actively during their
assigned group’s
Group 3 : May 6, 2021 Group 6 presentation

Group 4 : May 6, 2021 Group 1

Group 5 : May 11, 2021 Group 2

Group 6 : May 11, 2021 Group 3

41
Guidelines
Term Paper (FinTech case analysis) Introduction
- present the topi/company, should make up approx
10% of the essay
• Approx. 1,500 to 2000 words, submit via AnimoSpace

• Deadline: 13th week?

• Groups are required to expound on their presentation (consult final focus of the topic with your professor)
Body
• Expound on a specific topic/company
- provide the key points of the paper, should make-
• The paper must focus on providing a case-study analysis on the fintech company and financial industry
up approx 75% of the paper
• Company’s history and growth

• identify strengths, weaknesses, opportunities, threats in relation to its technologies and also competitors

• Incorporate financial and economic indicators

Conclusion
• Analyse technologies used
- identify/provide key-take aways/opportunities/
• Identify corporate and business strategy
recommendations/future trends, should make up about
• Analyse research and findings
15% of the paper
• Provide recommendations

• Must provide a perspective on the SDGs applicable to the financial industry, such as:
References/Bibliography
• SDG 1: No Poverty
- at least 10 references, excluded from the word count
• SDG: 8 Decent work and economic growth
and similarity index
• SDG: 9 Industry, innovation, and infrastructure

• SDG: 10 Reduced inequalities

• Use of charts, diagrams, graphs, illustrations, and other infographics are recommended

• Use proper quotations, in-text citations, and referencing (APA format)

• At least 10 references

• Watch out for any forms of plagiarism (intentional or unintentional)

Example:
• Accomplish the peer evaluation - this will be uploaded in AnimoSpace

• Format

• font: Times New Roman

PayMaya and the impact of
• font size: 12
digital wallets to SMEs

42
 FinTech
Technology Disruptions Enabling FinTech (Pt. 2)

Toledo, N.
 GROUPINGS
Group 1 Group 2 Group 3 Group 4 Group 5 Group 6

Mary Khristine Bea Llana Artates,

Juan Alianne Alfonso John Reyes (Leader) Waxx Navales Princess

Angelique De Leah Beatrice

Leon Katherine Batto Audrey See Jan Gavin Go Tagabucba Dabatos, Mary

Gillian
Santino Palacios Carbonilla Shaila Sy Reignard Uy Joaquin Sese Edralin, Dazle

Dane Amil Vera Lacandili Issey Tan Aaron Yaneza Regine Torres Rivera, Isabelle

Tenorio,
Reynalyn
Questions/Concerns

AnimoSpace, discussion threads

[email protected]