FINTECH QUIZ 1 QUESTIONS WITH DETAILED VERIFIED
AND 100% ACCURATE ANSWERS
Start-ups need to grow rapidly Correct Answers Network effects
(conventional and data) and scale economies/first mover advantage
Financing framework Correct Answers small businesses: low capital
requirement, low novelty
Capital intensive, proven-tech: high capital requirement, low novelty
Capital intensive new tech: high capital, high novelty
New technologies: low capital, high novelty
Search frictions Correct Answers little public info available about start-
up-- sourcing: where to find deal?
info asymmetry Correct Answers entrepreneur knows more than
investor. Diligence and monitoring
Investors balance 3 goals Correct Answers 1. diversification across
investments
2. scale in each investment
3. management/transaction costs (so that it's worth it)
Repeal of Glass-Steagall Act Correct Answers allows commercial banks
to merge with security institutions
, Disintermediation Correct Answers P2P insurance, reducing costs,
empowering the consumer
4 views of the current fintech bubble Correct Answers 1. all hype
2. wall street -> palo alto, no more banks
3. big banks acquire fintech startups
4. blockchain decentralizes financial services-> power to the people
front-end start-up approach to banking Correct Answers Consumer,
commercial internet-only. Digital challenger banks: much lower
requirements to get a banking license. Cost of acquiring customers high
in the US
back-end startup approach to banking Correct Answers access and
authorization to bank accounts on apps/sites. Venmo: gathering data on
how you're spending
Subsector of fintech: insurance Correct Answers Insurance: Oscar,
Lemonade. Life insurance. Tracktable: AI technology to underwrite
Subsector of fintech: Institutional investment/research Correct Answers
AI driven hedge funds
Social platforms: follow investor's deals
Data/analytics: hedge funds use this to outsource quant. For ex:
Dataminr
Trade finance platforms: some crypto based
AND 100% ACCURATE ANSWERS
Start-ups need to grow rapidly Correct Answers Network effects
(conventional and data) and scale economies/first mover advantage
Financing framework Correct Answers small businesses: low capital
requirement, low novelty
Capital intensive, proven-tech: high capital requirement, low novelty
Capital intensive new tech: high capital, high novelty
New technologies: low capital, high novelty
Search frictions Correct Answers little public info available about start-
up-- sourcing: where to find deal?
info asymmetry Correct Answers entrepreneur knows more than
investor. Diligence and monitoring
Investors balance 3 goals Correct Answers 1. diversification across
investments
2. scale in each investment
3. management/transaction costs (so that it's worth it)
Repeal of Glass-Steagall Act Correct Answers allows commercial banks
to merge with security institutions
, Disintermediation Correct Answers P2P insurance, reducing costs,
empowering the consumer
4 views of the current fintech bubble Correct Answers 1. all hype
2. wall street -> palo alto, no more banks
3. big banks acquire fintech startups
4. blockchain decentralizes financial services-> power to the people
front-end start-up approach to banking Correct Answers Consumer,
commercial internet-only. Digital challenger banks: much lower
requirements to get a banking license. Cost of acquiring customers high
in the US
back-end startup approach to banking Correct Answers access and
authorization to bank accounts on apps/sites. Venmo: gathering data on
how you're spending
Subsector of fintech: insurance Correct Answers Insurance: Oscar,
Lemonade. Life insurance. Tracktable: AI technology to underwrite
Subsector of fintech: Institutional investment/research Correct Answers
AI driven hedge funds
Social platforms: follow investor's deals
Data/analytics: hedge funds use this to outsource quant. For ex:
Dataminr
Trade finance platforms: some crypto based
