WGU D367 Innovation in Finance – Complete Course Notes & Assessment Prep | 2026
Edition
Correct
Incorrect
Term 1 of 227
What benefit came from the EU's PSD2 directive?
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✅ Payment systems must be
offered as APIs to third parties, Banks are required to share all
enabling innovation. (Summary: customer transaction data with
PSD2 opened payments to third competitors.
parties.)
All European citizens are now required Payday lenders are banned from
to use a single digital currency. operating within the European Union.
Don't know?
Term 2 of 227
What is the name of the global network created in 2005 offering
resources, inspiration, and collaboration opportunities for entrepreneurs?
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, Y Combinator — a US-based
Silicon Valley Bank — a regional bank
accelerator with a focus on software
focused on tech start-ups.
companies.
Impact Hub — a network with
The World Economic Forum — a 16,000+ members in 100+
political organization focused on countries. (Summary: Impact Hub
global governance. supports entrepreneurs
worldwide.)
Don't know?
Term 3 of 227
Which societal change led to new fintech insurance products?
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Growing demand for travel protection led to fintechs offering traveler's insurance
for disrupted itineraries. (Summary: Travel shifts created new insurance needs.)
The elimination of the need for travel insurance by airlines.
A preference for physical travel agents over online booking systems.
The decline of international travel led to a decrease in insurance demand.
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Term 4 of 227
,What caused the fintech Plastc to fail?
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Despite having an advanced
product, it ran out of funding
It was shut down by regulators for
before generating revenue.
failing to meet basic security standards.
(Summary: Lack of funding ended
Plastc.)
It was acquired by a major bank but the It was outcompeted by a cheaper, less
integration failed due to cultural advanced product that gained market
clashes. traction.
Don't know?
Term 5 of 227
How have fintechs maintained a lower regulatory compliance profile
compared to banks and insurance companies?
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They operate entirely offline, which exempts them from digital transaction monitoring
laws.
They rely solely on government grants, which come with fewer compliance
requirements than private investment.
They are classified as technology companies rather than financial institutions, bypassing
banking regulations.
, They focus on a single or few business processes, so they avoid broader antitrust
and competition rules. (Summary: Narrow focus reduces compliance burden.)
Don't know?
Term 6 of 227
Why would creating a fintech be used by businesses who are both for-
profit and not-for-profit businesses?
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Fintech enables businesses to shut down physical locations and operate entirely online.
Fintech allows businesses to avoid paying taxes by hiding profits in offshore accounts.
Fintech enables microfinancing in other countries, helping the "unbanked" access
financial systems and supporting small businesses. (Summary: Fintech expands
access through microloans.)
Fintech allows businesses to increase the interest rates on loans to maximize profits.
Don't know?
Term 7 of 227
How can digital platforms help consumers choose socially responsible
investing (SRI) products?
Give this one a try later!
Edition
Correct
Incorrect
Term 1 of 227
What benefit came from the EU's PSD2 directive?
Give this one a try later!
✅ Payment systems must be
offered as APIs to third parties, Banks are required to share all
enabling innovation. (Summary: customer transaction data with
PSD2 opened payments to third competitors.
parties.)
All European citizens are now required Payday lenders are banned from
to use a single digital currency. operating within the European Union.
Don't know?
Term 2 of 227
What is the name of the global network created in 2005 offering
resources, inspiration, and collaboration opportunities for entrepreneurs?
Give this one a try later!
, Y Combinator — a US-based
Silicon Valley Bank — a regional bank
accelerator with a focus on software
focused on tech start-ups.
companies.
Impact Hub — a network with
The World Economic Forum — a 16,000+ members in 100+
political organization focused on countries. (Summary: Impact Hub
global governance. supports entrepreneurs
worldwide.)
Don't know?
Term 3 of 227
Which societal change led to new fintech insurance products?
Give this one a try later!
Growing demand for travel protection led to fintechs offering traveler's insurance
for disrupted itineraries. (Summary: Travel shifts created new insurance needs.)
The elimination of the need for travel insurance by airlines.
A preference for physical travel agents over online booking systems.
The decline of international travel led to a decrease in insurance demand.
Don't know?
Term 4 of 227
,What caused the fintech Plastc to fail?
Give this one a try later!
Despite having an advanced
product, it ran out of funding
It was shut down by regulators for
before generating revenue.
failing to meet basic security standards.
(Summary: Lack of funding ended
Plastc.)
It was acquired by a major bank but the It was outcompeted by a cheaper, less
integration failed due to cultural advanced product that gained market
clashes. traction.
Don't know?
Term 5 of 227
How have fintechs maintained a lower regulatory compliance profile
compared to banks and insurance companies?
Give this one a try later!
They operate entirely offline, which exempts them from digital transaction monitoring
laws.
They rely solely on government grants, which come with fewer compliance
requirements than private investment.
They are classified as technology companies rather than financial institutions, bypassing
banking regulations.
, They focus on a single or few business processes, so they avoid broader antitrust
and competition rules. (Summary: Narrow focus reduces compliance burden.)
Don't know?
Term 6 of 227
Why would creating a fintech be used by businesses who are both for-
profit and not-for-profit businesses?
Give this one a try later!
Fintech enables businesses to shut down physical locations and operate entirely online.
Fintech allows businesses to avoid paying taxes by hiding profits in offshore accounts.
Fintech enables microfinancing in other countries, helping the "unbanked" access
financial systems and supporting small businesses. (Summary: Fintech expands
access through microloans.)
Fintech allows businesses to increase the interest rates on loans to maximize profits.
Don't know?
Term 7 of 227
How can digital platforms help consumers choose socially responsible
investing (SRI) products?
Give this one a try later!
