Course summary

Over the past decade, technological progress and innovation have catapulted the fintech sector from the fringes to the forefront of financial services. Growth has been fast, buoyed by the robust growth of the banking sector, rapid digitization, changing customer preferences, and increasing support of investors and regulators. During this decade, fintechs have profoundly reshaped certain areas of financial services with their innovative, differentiated, and customer-centric value propositions, collaborative business models, and cross-skilled and agile teams. Market capitalization of publicly traded fintechs have been increasing as well as the number of fintech unicorns and their valuation. This reflects the last decade progress and the future potential of the sector. Digital adoption is no longer a question but a reality and the majority of the world’s interactions with banks now take place through digital channels. This is the first and most well-known pillar of Fintech: how to address financial institutions challenges with increased regulatory requirements and customer-centric approaches. Looking ahead, the fintech industry have several opportunities yet to be unlocked. Central banks and financial regulators are enhancing sustainable development in the context of their mandates, with a focus on improving systems and infrastructure. At the centre of this digital transformation is Fintech and financial inclusion (FT4FI) and the support of the UN Sustainable Development Goals (SDG). This is the second, and more recent pillar of Fintech: Fintech and Sustainability. For example, the global insurance industry identifies climate change as perhaps the greatest risk facing the industry going forward. This is evidence of how the financial sector, its policies and approaches to risk management and mitigation, can be aligned and support the UN SDG. Another example of the intersection between the financial sector and the UN SDG is the positive impact that technology can have in finance, namely, through the implementation of digital ID, eKYC, mobile money, open electronic payment systems, transforming credit provision, and other financial technologies. However, Fintech and technological development (Big Data, AI, blockchain) pose new regulatory challenges, and Fintech and Sustainable Finance are now major policy focuses. Central banks and financial regulators are closely looking at how Fintech is important for SDGs and how digital transformation, using Fintech and financial inclusion as tools, can build a more sustainable future by promoting prosperity while balancing risks. The once-in-a-generation technology revolution under way is generating more value creation opportunities, mostly fuelled by emerging markets. This course, and its two pillars approach to Fintech, represents an opportunity for students to obtain the necessary skillset to be equipped for the challenges ahead, either by learning how to solve the problems faced by the traditional financial sector (increased regulatory requirements and customers satisfaction), or learning how to address the UN SDG (Fintech and Sustainability). With a hands on approach students will understand that, firstly, Fintech will continue to benefit from the radical transformation of the banking industry and financial sector in general, rapid digital adoption, and e-commerce growth around the world, particularly in developing economies, but secondly, Fintech still have room to achieve further growth in an expanding financial-services ecosystem aligned with the UN SDG.