FINTECH QUESTIONS WITH DETAILED VERIFIED AND
100% ACCURATE ANSWERS
What is a challenger bank? Where are they mostly located? Two
Examples. Correct Answers 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
Capital One: Disruptive or sustaining? Why? Mix of organic and
inorganic innovations? Correct Answers 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.
What does it mean that regulatory barriers are a "double edged sword"?
Correct Answers 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.
What is PSD2? What is the relation to "Open Banking"? Correct
Answers "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.
How have tech companies in China entered Digital banking? Correct
Answers - WeBank by Tencent
- MYBank by AliBaba
What is it meant by financial intermediary (for a bank)? What are the
roles of banks? Correct Answers 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.
What role did the financial crisis play in getting the FinTech revolution
started? Correct Answers 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.
What is "disintermediation"? Give an example with FinTech firms.
Correct Answers Disintermediation is the economic phenomenon in
which the "middle man" or intermediary is bypassed. Robo-advisors and
digital banks are great examples.
100% ACCURATE ANSWERS
What is a challenger bank? Where are they mostly located? Two
Examples. Correct Answers 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
Capital One: Disruptive or sustaining? Why? Mix of organic and
inorganic innovations? Correct Answers 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.
What does it mean that regulatory barriers are a "double edged sword"?
Correct Answers 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.
What is PSD2? What is the relation to "Open Banking"? Correct
Answers "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.
How have tech companies in China entered Digital banking? Correct
Answers - WeBank by Tencent
- MYBank by AliBaba
What is it meant by financial intermediary (for a bank)? What are the
roles of banks? Correct Answers 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.
What role did the financial crisis play in getting the FinTech revolution
started? Correct Answers 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.
What is "disintermediation"? Give an example with FinTech firms.
Correct Answers Disintermediation is the economic phenomenon in
which the "middle man" or intermediary is bypassed. Robo-advisors and
digital banks are great examples.
