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2020/2021  KAN-CCMVV1906U  FinTech Foundations for Finance (online course)

English Title
FinTech Foundations for Finance (online course)

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Robert Kauffman - Department of Digitalisation
Main academic disciplines
  • Finance
  • Information technology
Teaching methods
  • Online teaching
Last updated on 01-07-2020

Relevant links
Learning objectives
The course enables students to appreciate economics, strategy and service operations so they can:
  • Explain the Fintech Revolution’s forces and key technologies making such innovations possible
  • Analyze process disruption, and design new approaches to take advantage of tech innovations
  • Use a business process analysis tool, BizAgi, to represent AS-IS and TO-BE process designs that improve customer centricity, while controlling risk and enhancing profitability through FinTech
  • Evaluate threats from new FinTech entrants and develop approaches that corporate finance, banking, investment, and insurance pros can use to address market changes
  • Analyze FinTech start-ups activities in the creation of next-gen products and services
  • Recognize technical standards, regulatory frameworks, and fundamental patterns of industry change
Prerequisites for registering for the exam (activities during the teaching period)
Number of compulsory activities which must be approved (see s. 13 of the Programme Regulations): 1
Compulsory home assignments
The student must get 1 out of 2 assignments approved in order to attend the ordinary exam.

The compulsory assignments are:

(1) a FinTech transformation student-pairs BizAgi mini-case with AS-IS and TO-BE process diagrams uploaded to Canvas. Student feedback is given via a web-based tool. Instructor’s feedback given by a brief assessment shared on email using the same three dimensions, with more instruction for how student can do better.

(2) a group (5 students max) case analysis presented via slides with AS-IS and TO-BE process diagrams in an online breakout presentation discussion, also uploaded to Canvas and presented online.

Students will not have extra opportunities to get the required number of compulsory activities approved prior to the ordinary exam. If a student has not received approval of the required number of compulsory activities or has been ill, the student cannot participate in the ordinary exam. If a student prior to the retake is still missing approval for the required number of compulsory activities and meets the pre-conditions set out in the program regulations, an extra assignment is possible.

The extra assignment is a 10 page home assignment that will cover the required number of compulsory activities. If approved, the student will be able to attend retake.
Examination
FinTech Foundations for Finance:
Exam ECTS 7,5
Examination form Home assignment - written product
Individual or group exam Individual exam
Size of written product Max. 15 pages
Assignment type Written assignment
Duration 72 hours to prepare
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Winter
Make-up exam/re-exam
Same examination form as the ordinary exam
Course content, structure and pedagogical approach

Professionals in financial services, corporate finance and finance-related jobs today require knowledge of the digital technological forces that have been creating innovations, disrupting business processes, and transforming financial services industry structure. The result has been newly-emerging practices, altered approaches to financial intermediation, technology-enhanced products, more readily-accessible services, increasing entry from FinTech start-ups, and severe challenges to long-standing industry players and financial markets. This course prepares Finance students to navigate the new FinTech Revolution-driven industry landscape that has been created amid these changes. This course emphasizes key technologies (e.g., blockchain, open APIs and platforms, mobile phones and chatbots, AI and machine learning, cybersecurity) creating the changes, the processes that are affected (lending, payments, bank funding, risk management, securities trading, remittances, cybersecurity), and recent developments that reflect changes in how the industry works (disintermediation, platform transformation, technology-based strategic rivalry, regtech).
Description of the teaching methods
lectures, cases and student presentation workshops, blended learning self-study, guest speakers, and a field visit. Lectures cover basic FinTech knowledge for future Finance professionals. The cases and presentations support student learning about FinTech innovations in real-world organizations and industry markets around the world. Cases and presentations are done in student groups, require use of BizAgi, and encourage Fintech-style redesign of product and service processes. Knowledge of process analysis is delivered with blended learning methods, involving online study and self-testing, along with in-class demos. Guest speakers will discuss their FinTech start-up activities, and the field visit gives students in-depth experience with a local organization and its FinTech innovations. Students attend lectures, guest speaker presentations, and the field visit, and actively participate in group presentations and discussions, to take away useful knowledge for future careers in different aspects of Finance affected by the FinTech Revolution.
Feedback during the teaching period
Feedback will be given to students in class, as they participate in discussions in class (in verbal form), present cases and deliver case study process analysis and innovation materials (through instructor and student Q&A, and in structured pre-announced written rubrics), and a graded take-home individual final exam. Instructor will conduct brief individual skills checkouts to gauge student learning and encourage hands-on knowledge of a process analysis tool for FinTech process analysis.
Student workload
Lectures 24 hours
Tool Study 8 hours
Cases 24 hours
Class prep 88 hours
Exam 72 hours
Total 216 hours
Expected literature

Allsop, P.; Summers, B.; and Veale, J. The evolution of real-time gross settlement: Access, liquidity and credibility. Working paper, 2009. World Bank, Washington, DC.
 

Bansal, S.; Bruno, P.; Hough, G.; Istace, F.; Niederkorn, M. 2015. How the payments industry is being disrupted. McKinsey Quarterly, November.

 

BizAgi Modeler. 2019. Tool and instructional materials, manual and videos. Available at: www.bizagi.com/en. Last accessed on December 5, 2018.

 

Brodsky, L., Oakes, L. 2017. Data sharing and open banking. Consulting report, McKinsey, New York, September.

 

Burtch, G.; Hong, Y.; Liu, D. 2018. On the role of provision points in online crowdfunding. Journal of Management Information Systems, 35, 1, 117-144.

 

Clemons, E.K.; Dewan, R.M.; Kauffman, R.J.; Weber, T.A. 2017. Understanding the information-driven transformation of strategy and society. Journal of Management Information Systems, 34, 2, 425–456.

 

Dhar, V., Stein, R. 2017. Fintech platforms and strategy. Communications of the ACM, 60, 10, 32–35.

 

FIS. Flavors of fast. White paper, Jacksonville, FL, 2015.

 

Gomber, P., Kauffman, R.J., Parker, C., Weber, B.W. 2018. On the fintech revolution: Interpreting the forces of innovation, disruption, and transformation in financial services. Journal of Management Information Systems, 35, 1, 220-265.

 

Gomber, P.; Koch, J.; Siering, M. 2017. Digital finance and fintech: Current research and future research directions. Journal of Business Economics, 87, 5, 537–580.

 

Guo, Z.; Kauffman, R.J.; Lin, M.; Ma, D. 2015. Mechanism design for near real-time retail payment and settlement systems. Working paper no. 2014-004, SWIFT Institute, London, September 15.

 

Hatzakis, E.D.; Nair, S.K.; Pinedo, M. 2010. Operations in financial services: An overview. Production and Operations Management, 19, 6, 633–664.

 

He, D. 2017. Fintech and cross-border payments. Speech for IMF, New York, November 1.

 

Jenik, I.; Lyman, T.; Nava, A. 2017. Crowdfunding and financial inclusion. CGAP 1770, Washington, DC, April.

 

Kazan, E.; Tan, C.W.; Lim, E.T.K.; Sørensen, C.; Damsgaard, J. 2018. Disentangling digital platform competition: The case of U.K. mobile payment platforms. Journal of Management Information Systems, 35, 1, 180-219.

 

KPMG. Banking on the future: The roadmap to becoming the banking partner of gen y professionals, 3rd ed. White paper, Sydney, Australia, 2017.

 

Larsen, K.S., Gilani, S. 2016. Regtech is the new black: The growth of regtech demand and investment. Journal of Financial Transformation, 45, 6, 22–29.

 

Liu, J.; Kauffman, R.J.; Ma, D. 2015. Competition, cooperation, and regulation: Understanding the evolution of the mobile payments technology ecosystem. Electronic Commerce Research and Applications, 14, 5, 372–391.

 

Mai, F.; Shan, Z.; Bai, Q.; Wang, X.; Chiang, R.H.L. 2018. How does social media impact Bitcoin value? A test of the silent majority hypothesis. Journal of Management Information Systems, 35, 1, 19-52.

 

Moleskis, M. Canela, M.A. 2016. Crowdfunding success: The case of Kiva.org. Working paper no. 1137-E, IESE Business School, University of Navarra, Spain, March.

 

Morgan, S. 2016. Why J.P. Morgan Chase is spending a half billion dollars on cybersecurity. Forbes, January 30.

 

Nakamoto, S. 2008. Bitcoin: A peer-to-peer electronic cash system. Technical paper, October 31. Bitcoin Foundation, Washington, DC.

 

PwC. 2016. Financial services technology 2020 and beyond: Embracing disruption. White paper, London.

 

Staykova, K.; Damsgaard, J. 2015. The race to dominate the mobile payments platform: Entry and expansion strategies. Electronic Commerce Research and Applications, 14, 5, 319–330.

 

Zachariadis, M., Ozcan, P. 2017. The API economy and digital transformation in financial services: The case of open banking. Working paper, SWIFT Institute, London, June.
Last updated on 01-07-2020