Fintech in Transaction Services

Graduate Program (& Advanced Certificate) Status

Course Level: 
Master’s
Campus: 
Budapest
Course Open to: 
Students on-site
Academic Year: 
2020-2021
Term: 
Winter
US Credits: 
1
ECTS Credits: 
2
Course Description: 

Content.

The objective of this course is to provide foundation knowledge on financial technology applications and the relevant key infrastructure providers. The course has two key components. The first component covers trading systems and trading technologies with insights about the functioning of organized exchange with central clearing parties (CCPs) versus decentralized OTC (or dark pool) trading platforms. The second component focuses on the Real time gross settlement systems (RTGS), contrasting FIs backed and nonFIs backed alternative solutions at cross-country settlements, at B2B and at B2C transactions.

Relevance.

The course content is a good complement (but not a prerequisite) to the FinTech in Depth and the Banking IT & FinTech: Bank to the Future courses. The three courses cover different aspects of the digital finance cube, thereby providing a full picture about the recent technological developments in finance.

Learning Outcomes: 

Key outcomes. By the end of the course, students will be able to

  • Explain new fintech trends such as Cryptocurrency, Blockchain, Intraday settlements, Real time settlements, Peer-to-Peer Transacting, Financial Inclusion and the spread of API driven fintech applications.
  • Analyze traditional and evolving business models in investment and financial service industry.
  • Identify business opportunities and propose feasible solutions using new technology available.
  • Identify the threats and opportunities with open banking and “mother of all apps” with government oversights and controls.

 

Other outcomes. The course will also help develop skills in the following areas.

Core Learning Area

Learning Outcome

Interpersonal Communication Skills

Participate in class discussions and problem solving exercises. Present arguments and findings. Objectively critique findings of fellow students.

Technology Skills

Use of MS Excel tools in problem solving, Database access, data base management and simulation (Thomson Reuters Eikon for Students + Datastream)

Cultural Sensitivity and Diversity

Harness international and professional diversity of students in viewing issues and problems from different perspectives.

Quantitative Reasoning

Learn theories, models, quantitative methods and their applications.                                                                                       

Critical Thinking

Exercise the powers of inquiry, logical thinking and critical analysis, learn from the old norm and question and challenge the new norm (the unknown, the untested). 

Ethics and Social Responsibility

Evaluate and discuss challenges related to ethical and professional behavior in financial intermediaries and market participants (SEC debates).

Management Knowledge and Skills

Acquire a fundamental understanding of exchanges and payment systems without designated market makers and regulatory oversight.  Examples and case studies will be used.

Assessment: 

Grading will be based on the total score out of 100, in line with CEU’s standard grading guidelines.

  • Class Participation and problem solving (20%)
  • Assignment (report + presentation)       (30%)
  • Final project (report + presentation)     (50%).

For minimum pass in the course, the student has to make nontrivial contribution to each assessment component.

Class participation and problem solving

Class participation includes attendance, attitude, and active participation in diccussions. For the second and third classmeeting reading material will be assigned so that students can be “prepared” to be called on. However, it is useful to note in advance that there are often no “right” answers, every angle, every new approach to a problem can provide useful pointers for in-class learning.

Assignment

The group assignment is linked to understanding different trading platforms’, technological advancement in the traditional financial services. A list of suggested group assignment topics are provided, including, OTC and/or centralized trading/lending/investing platforms. Students also have the flexibility to suggest their own topic as long as it is discussed and approved by lecturer.  The key objective is to analyze the supporting technology innovation and the costs and benefits for users and the society. The assignment submission requirement: PPT or PDF presentation slides, a 5-6 minutes recording of presentation, and the same presentations in class with Q&A, with a short 3-5 pages of summary report of the learning points, and reflection upon feedback after class. The report is due 3 days after the class to allow for the incorporation of feedbacks from the class.

Final project (report)

The final project is a case study of an assigned (or selected) payment system. The project presentation is in 2 steps. The first part is strategic evaluation of the payment system and the second part is planning a geographic expansion (or shift from B2B to B2C or vice versa) addressing, geopolitical, regulatory and social challenges in additional to the economic challenges.  Student groups are required to submit the first part of the project the night before the final class, 4-5 slides summary and present in class in maximum 5 minutes. In class after additional brainstorming and class discussion the groups present the second part of their findings. In class after the presentations, groups will receive constructive critiques and suggestion and expected to submit the final summary report within 5 days after the last class.  

File attachments: