FinTech | Questions with 100% Verified Answers | Latest
Update 2026/2027
Question: What is a challenger bank? Where are they mostly located? Two Examples.
Answer: Tech-driven retail bank, created either as a start-up or a divestment from larger banks that use
innovative systems and products to appeal to newer generations and directly compete with incumbents.
Mostly in UK: Monzo & Revolut
Question: Capital One: Disruptive or sustaining? Why? Mix of organic and inorganic innovations?
Answer: Sustaining- They entered retail banking in early 2000s, extending their product offerings throughout
their life without causing disruption. Nice portfolio of patents and multiple acquisitions of retail banks and
cyber security companies have allowed them to become a dominant company in tech innovation.
Question: What does it mean that regulatory barriers are a "double edged sword"?
Answer: It is difficult for FinTech companies to gain entry into the market because of the regulation barriers,
hindering the competition for traditional banks. However, it is also harder for traditional banks to expand their
business plan to include moire tech-driven applications.
Question: What is PSD2? What is the relation to "Open Banking"?
Answer: "Payment Services Directive 2" An EU directive to regulate payment services and providers so that
they can compete with traditional banks. The goal is to offer more financial transparency to clients and offer
consumer protection.
Question: How have tech companies in China entered Digital banking?
Answer: - WeBank by Tencent
- MYBank by AliBaba
Question: What is it meant by financial intermediary (for a bank)? What are the roles of banks?
Answer: The bank is the middle man between borrowers and lenders, specializing in buying/selling financial
contracts. Roles include: mitigate asymmetric info, act as delegated monitor, and ability to shift liquidity of
assets.
Question: What role did the financial crisis play in getting the FinTech revolution started?
Answer: The crisis led to new regulations and a need for risk management and data collection. This required an
innovative ways to address new regulations, leading to FinTech revolution. We are now seeing a
disintermediation effect from it.
Question: What is "disintermediation"? Give an example with FinTech firms.
Answer: Disintermediation is the economic phenomenon in which the "middle man" or intermediary is
bypassed. Robo-advisors and digital banks are great examples.
Question: What are two examples of digital banks here in the U.S.?
Answer: Ally Bank (GMAC divestment) Synchrony Bank (GE divestment)
Question: What does "GAFAMA" stand for?
Answer: Google, Amazon, Facebook, Apple, Microsoft, Ali Baba (Ant Financial)
, Question: What is the "three-legged stool" that Mr. Brady talked about?
Answer: 1. Founders/Start-ups
2. Investors/VCs
3. Corporates
Question: What type of innovation is a corporate investing in FinTech firms?
Answer: Inorganic Innovation
Question: Mr. Brady said that. some of the best start-ups come out of a crisis. Why?
Answer: There are fewer jobs in the economy- start-ups are able to recruit highly talented individuals for a
good cost
Question: What are the ways in which banks are vulnerable to disruption from the Big Tech firms?
Answer: 1. Speed
2. Change is Hard
3. Legacy System
4. Customer Experience
5. Retail Branch Network
6. Scale
7. Margin Compression
Question: What is Facebook's biggest impediment to entering FinTech at this moment?
Answer: The company struggles with the trust of the public.
Question: What is FinTech?
Answer: FinTech is Financial Technology. Specifically, it is the implementation of new technology to financial
solutions for both individuals and firms. It is still in its infancy stage and does not have a widely used definition.
It forces firms to rethink their business models.
Question: Why is innovation crucial to the growth and sustainability of FinTech?
Answer: Innovation is the implementation of something new. Without it, FinTech would not exist. Thus, it is
imperative for the growth and sustainability and is the main driver of FinTech.
Question: According to Peter Drucker, what is innovation?
Answer: Innovation is the implementation of something new. Specifically, it is doing something differently in
order to better the outcome (or yield better results) than previously done. "Changing the value and satisfaction
obtained from resources by the consumer"
Question: What are the "Seven Sources of Innovation"?
Answer: 1. The unexpected
2. Incongruities
3. Market/Industry Infrastructure
4. Demographics
5. Process Need
6. New Information
7. Changes in Perception
Update 2026/2027
Question: What is a challenger bank? Where are they mostly located? Two Examples.
Answer: Tech-driven retail bank, created either as a start-up or a divestment from larger banks that use
innovative systems and products to appeal to newer generations and directly compete with incumbents.
Mostly in UK: Monzo & Revolut
Question: Capital One: Disruptive or sustaining? Why? Mix of organic and inorganic innovations?
Answer: Sustaining- They entered retail banking in early 2000s, extending their product offerings throughout
their life without causing disruption. Nice portfolio of patents and multiple acquisitions of retail banks and
cyber security companies have allowed them to become a dominant company in tech innovation.
Question: What does it mean that regulatory barriers are a "double edged sword"?
Answer: It is difficult for FinTech companies to gain entry into the market because of the regulation barriers,
hindering the competition for traditional banks. However, it is also harder for traditional banks to expand their
business plan to include moire tech-driven applications.
Question: What is PSD2? What is the relation to "Open Banking"?
Answer: "Payment Services Directive 2" An EU directive to regulate payment services and providers so that
they can compete with traditional banks. The goal is to offer more financial transparency to clients and offer
consumer protection.
Question: How have tech companies in China entered Digital banking?
Answer: - WeBank by Tencent
- MYBank by AliBaba
Question: What is it meant by financial intermediary (for a bank)? What are the roles of banks?
Answer: The bank is the middle man between borrowers and lenders, specializing in buying/selling financial
contracts. Roles include: mitigate asymmetric info, act as delegated monitor, and ability to shift liquidity of
assets.
Question: What role did the financial crisis play in getting the FinTech revolution started?
Answer: The crisis led to new regulations and a need for risk management and data collection. This required an
innovative ways to address new regulations, leading to FinTech revolution. We are now seeing a
disintermediation effect from it.
Question: What is "disintermediation"? Give an example with FinTech firms.
Answer: Disintermediation is the economic phenomenon in which the "middle man" or intermediary is
bypassed. Robo-advisors and digital banks are great examples.
Question: What are two examples of digital banks here in the U.S.?
Answer: Ally Bank (GMAC divestment) Synchrony Bank (GE divestment)
Question: What does "GAFAMA" stand for?
Answer: Google, Amazon, Facebook, Apple, Microsoft, Ali Baba (Ant Financial)
, Question: What is the "three-legged stool" that Mr. Brady talked about?
Answer: 1. Founders/Start-ups
2. Investors/VCs
3. Corporates
Question: What type of innovation is a corporate investing in FinTech firms?
Answer: Inorganic Innovation
Question: Mr. Brady said that. some of the best start-ups come out of a crisis. Why?
Answer: There are fewer jobs in the economy- start-ups are able to recruit highly talented individuals for a
good cost
Question: What are the ways in which banks are vulnerable to disruption from the Big Tech firms?
Answer: 1. Speed
2. Change is Hard
3. Legacy System
4. Customer Experience
5. Retail Branch Network
6. Scale
7. Margin Compression
Question: What is Facebook's biggest impediment to entering FinTech at this moment?
Answer: The company struggles with the trust of the public.
Question: What is FinTech?
Answer: FinTech is Financial Technology. Specifically, it is the implementation of new technology to financial
solutions for both individuals and firms. It is still in its infancy stage and does not have a widely used definition.
It forces firms to rethink their business models.
Question: Why is innovation crucial to the growth and sustainability of FinTech?
Answer: Innovation is the implementation of something new. Without it, FinTech would not exist. Thus, it is
imperative for the growth and sustainability and is the main driver of FinTech.
Question: According to Peter Drucker, what is innovation?
Answer: Innovation is the implementation of something new. Specifically, it is doing something differently in
order to better the outcome (or yield better results) than previously done. "Changing the value and satisfaction
obtained from resources by the consumer"
Question: What are the "Seven Sources of Innovation"?
Answer: 1. The unexpected
2. Incongruities
3. Market/Industry Infrastructure
4. Demographics
5. Process Need
6. New Information
7. Changes in Perception
