FINTECH EXAM 1 PRACTICE QUESTIONS WITH DETAILED
VERIFIED AND 100% ACCURATE ANSWERS
Fintech: digital delivery of financial products and services through the
internet, a mobile phone, or other electronic device; leverages
technology to solve customer pain points by providing a solution that is
cheaper, easer, faster, and more convenient than traditional financial
services
Fin: financial products and services
example: taking out a loan, making an investment, sending a payment
Tech: describes technology used to deliver those financial solutions over
the internet, a mobile phone, or electronic device
example: online banking apps or peer-to-peer lending platforms Correct
Answers What is fintech? What do the "fin" and the "tech" represent?
Give examples of both.
Believers describe it as a revolution where the goal is to disrupt the
existing financial order. I believe fintech represents a revolution of the
financial system because it is challenging and disrupting traditional
financial models. Innovations like peer-to-peer lending and
cryptocurrencies introduce entirely new approaches to financial
transactions. In addition, fintech has revolutionized how consumers
interact with financial services. Mobile payments, robo-advisors, and
digital wallets have transformed the way people manage and access their
money. Correct Answers In your opinion, does fintech represent an
evolution of the financial system or a revolution? Why?
,Paradigm: way of looking at the world — a shared point of view or
understanding about how things works
Paradigm shift: certain events can cause the dominant paradigm to be
updated or overturned (a shift) — a discovery, invention, or crisis; it
changes your view on everything; it is a fundamental change in the basic
assumptions, beliefs, and practices that constitute a particular way of
thinking or operating
Technology is causing a paradigm shift in the global economy, of which
financial services is one part
Two paradigms of fintech:
Traditional paradigm:
Transformation paradigm: Correct Answers What is a paradigm shift,
and what causes it? What are the two paradigms of fintech and what are
their key differences?
Fintech is an evolution of financial system;
Incumbents (banks & large institutions with large market share/control
over the market) are product-centric, with business units organized
around the products they sell;
, Incumbents are using technology to improve efficiency of back-office to
increase the profitability of their one-sided business models;
The goal: to capture more rents for bank insiders and shareholders
Correct Answers traditional paradigm
Fintech is a revolution disrupting an oligopolistic, rent-extracting
industry
Fintechs are customer-centric, focused on providing a delightful
experience to customers — focus on how customers perceive and
consume financial services
Fintechs are leveraging technology to solve customer pain points in
financial services ; managing finance is a major source of stress and
anxiety for customers — technology provides a means to eliminate
customer pain points
Fintech is erasing the artificial boundaries between financial services
and non-financial day-to-day activities, unbundling and rebuilding them
to meet customer needs
The goal: to deliver a customer experience that is cheaper, easier, faster,
and more convenient
VERIFIED AND 100% ACCURATE ANSWERS
Fintech: digital delivery of financial products and services through the
internet, a mobile phone, or other electronic device; leverages
technology to solve customer pain points by providing a solution that is
cheaper, easer, faster, and more convenient than traditional financial
services
Fin: financial products and services
example: taking out a loan, making an investment, sending a payment
Tech: describes technology used to deliver those financial solutions over
the internet, a mobile phone, or electronic device
example: online banking apps or peer-to-peer lending platforms Correct
Answers What is fintech? What do the "fin" and the "tech" represent?
Give examples of both.
Believers describe it as a revolution where the goal is to disrupt the
existing financial order. I believe fintech represents a revolution of the
financial system because it is challenging and disrupting traditional
financial models. Innovations like peer-to-peer lending and
cryptocurrencies introduce entirely new approaches to financial
transactions. In addition, fintech has revolutionized how consumers
interact with financial services. Mobile payments, robo-advisors, and
digital wallets have transformed the way people manage and access their
money. Correct Answers In your opinion, does fintech represent an
evolution of the financial system or a revolution? Why?
,Paradigm: way of looking at the world — a shared point of view or
understanding about how things works
Paradigm shift: certain events can cause the dominant paradigm to be
updated or overturned (a shift) — a discovery, invention, or crisis; it
changes your view on everything; it is a fundamental change in the basic
assumptions, beliefs, and practices that constitute a particular way of
thinking or operating
Technology is causing a paradigm shift in the global economy, of which
financial services is one part
Two paradigms of fintech:
Traditional paradigm:
Transformation paradigm: Correct Answers What is a paradigm shift,
and what causes it? What are the two paradigms of fintech and what are
their key differences?
Fintech is an evolution of financial system;
Incumbents (banks & large institutions with large market share/control
over the market) are product-centric, with business units organized
around the products they sell;
, Incumbents are using technology to improve efficiency of back-office to
increase the profitability of their one-sided business models;
The goal: to capture more rents for bank insiders and shareholders
Correct Answers traditional paradigm
Fintech is a revolution disrupting an oligopolistic, rent-extracting
industry
Fintechs are customer-centric, focused on providing a delightful
experience to customers — focus on how customers perceive and
consume financial services
Fintechs are leveraging technology to solve customer pain points in
financial services ; managing finance is a major source of stress and
anxiety for customers — technology provides a means to eliminate
customer pain points
Fintech is erasing the artificial boundaries between financial services
and non-financial day-to-day activities, unbundling and rebuilding them
to meet customer needs
The goal: to deliver a customer experience that is cheaper, easier, faster,
and more convenient
