Learning objectives
In addition to considering the specific characteristics of banks and appraise their role in a modern society, the course aims to give an in-depth overview of the FinTech Industry: the FinTech companies - which are radically innovating the way financial services are built and offered -, their activities and related risks are examined. Additionally, the course provides an overview of the main strategies that incumbents are following in the new market conditions and the main challenges in FinTech security and regulation.
At the end of the course students will be able to understand the main environment forces of change (changing client needs, regulation and technology) that underlie the Fintech sector and judge their implications on the strategies and performance of both banks and FinTech companies. Student will also be able to appraise the new regulatory challenges posed by the FinTech era; critically evaluate pros and cons of new trends for society as a whole; conduct an independent search on these topics, identify and evaluate relevant information.
Prerequisites
There are no formal prerequisites other than those set by the Department, but a good basic knowledge of Financial Markets and Institutions is strongly recommended.
Course unit content
This course consists of two sections. The first module involves the study of modern commercial bank management, reasons for regulation, economics of banking, risk management including recent changes in banking and finance. The second module deals specifically with the 'Fintech companies', which are breaching former banking strongholds and are defining the standard of digital banking with their technological innovations. This section essentially examine how digitalization is transforming the market conditions in the financial sector and seeks to provide an adequate representation of tools, actions, strategies, ways of execution and consequences of the 'FinTech revolution'.
Full programme
The first section, aimed at understanding the financial services industry, will cover the following topics:
- Financial regulation and supervision
- Organizational Structure
- The Financial Services Distribution Channel Model
- The balance sheet
- Risk Management
The second section will cover the following topics:
- The Fintech ecosystem (definitions, origins and relevance of the phenomenon, taxonomy of the main Fintech Business Applications)
- Digital currency, smart contract, blockchains, and distributed ledgers
- Fintech and the retail banking sector
- Asset management and robo-advisors
- PSD2 and open banking
- Technology innovation in insurance (Insurtech)
- The regulatory challenges of Fintech
Bibliography
• First part: Ruozi R., Economia della banca, Egea, 2020
• Second part: Course lecture notes, provided by the professor, and other relevant materials (articles, cases, reports, news articles) available on the Elly platform.
Teaching methods
Face-to face interactive lessons (case studies and assignments), seminars, guest speakers.
In case of extended COVID-19 Health Emergency, the course could be taught online (always in accordance with the University ordinances).
Assessment methods and criteria
The exam is based on a written test with 5 open-ended questions (each evaluated up to 6 marks) on the topics covered during the course.
At the discretion of the teacher, the final exam could be replaced with two ongoing partial tests. In this case, each module requires conducting an intermediate exam with score out of 30, and 18 as mimimum score. The final vote is given by the average of the votes of the two partial tests. In order to get 30 with honors (“cum laude") as final mark students need to demonstrate exceptionally outstanding performance ability with regards to all the descriptors (knowledge and understanding, knowledge and understanding applied, making judgments, communication skills, ability to learn).
In case of persistent COVID-19 Health Emergency, alternative assessment methods and/or remote examinations could be envisaged. In the event, detailed information will be made readily available on the Elly platform.
Other information
Note that the lecture slides (which are made available on the Elly portal) should not be considered as a substitute for the course textbook. They supplement it at most.
During the exam it is forbidden to consult notes, slides, books, pocket calculators and any other electronic devices such as smartphones, smartwatches, tablets, etc.
