Chapter7.1

Question 1

Define FinTech

Answer 1

A business that aims to provide financial services through the use of software and modern technology

Question 2

Describe Payments

Answer 2

1. Payments back-end infrastructure
   – Payment processing providers for accepting electronic payments, point of sales terminals, card providers and mobile payments
2. Customer payments
   – Enable payers to pay on the go and peer to peer transfer of money using mobile wallets and seamless payment

– Customer wants:
1. Personalized profile and personalized quicklinks
2. Payments made easier
3. Touch ID
4. Instant account opening

3. Cryptocurrency
   – Provide access to digital currency markets like bitcoin

Question 3

Describe deposits and lending

Answer 3

1. Personal finance
   – Focus on individual, household, budgeting as well as managing financial decisions and activities
2. Digital banking
   – Interactive online services to do their banking
3. Alternative lending
   – Provides customers with credit scores for peer to peer loans without having to go to a financial institution

Question 4

Investment and management

Answer 4

1. Private investment management
   – Automated process and trading algorithm for private investors to trade and manage their assets
2. Institutional investment management
   – Tools for institutional clients to manage their investment portfolios

Question 4

Capital raising

Answer 4

Provide customers with access to investments in return in exchange rates or for equity
1. Crowdfunding
– Focus on helping companies or entrepreneurs find to raise capital for their products or social causes

2. Alternative Financing
   – Innovative ways to raise capital without using financial institution for SMB

Question 5

Market provisioning

Answer 5

Provide transparency and accessibility of information in market so sellers and buyers can connect with each other more easily and compare two different product or service

1. Comparison and Matchmaking
   – Aggregator platforms for customers to compare and identify different financial products
2. Financial Social Networks
   – Facilitate interaction between buyers and sellers using social networks to improve financial literacy and inclusion

Question 6

Enterprise financial software

Answer 6

Software made for financial sector

1. Collaboration and workflow software
   – Cloud based platforms that enable better process of communication and efficiency of internal processes
2. Accounting and invoicing software
   – Improve time and resources spent on bookkeeping and invoicing process
3. Data and analytics software
   – Fight off fraud security issues and cyber crime

Question 7

Benefits of fintech

Answer 7

1. Better customer experience
2. Better convenience
3. Cost savings
4. Financial inclusion