Exam 18: Fintech Risks

Pandit predicted that ___% of banking jobs could be eliminated through artificial intelligence within five years of use.

Smartphone subscribers have penetrated the global market at what percentage in 2017?

Distributed ledger technology may not operate with existing processes and infrastructures as well as create ambiguity relating to settlement finality.

All crypto-assets or sub-class of crypto-assets are considered cryptocurrencies, a store of value and way to transfer value among users of that currency.

Smart contracts are made possible through blockchain technology and can enforce a relationship with a cryptographic code.

Digital ledger technology (DLT) is an electronic ledger or database that records and verifies transactions but is limited only to currency and cannot be adapted to other uses in the financial system.

IoT is

Fintech companies typically have a lower cost because of their capital funding structures.

Algorithm used to optimize automatically through experience and with limited or no human interventions is referred to as machine learning.

Innovations such as the cryptocurrency Bitcoin in 2009 and Google Wallet in 2011 have aided in the financial and digital disruption that banks have been required to adapt to.

Macroeconomic conditions, including low interest rate environments put a downward pressure on profits and increased the incentives of FIs to cut costs.

Industry uses for distributed ledger technology is currently unknown.

AMTD describes the relationship between banks and fintech in all of the following stages besides:

Payment Services Directive 2 requires the sharing of consumer banking data with third parties when authorized by the customer, meaning it creates access to personal data, whereas the General Data Protection Regulation focuses on protecting the data.

How do fiat exchanges compare to crypto-to-crypto exchanges?

The Basel Committee on Banking Supervision (BDBS) was created to identify risks associated with the emergence of fintech as strategic, operational, cyber-risk, and compliance.

Artificial intelligence or AI increases the availability of data through recognition of images, processing natural languages, and learning from experience.

A distributed ledger is a database that is independently held and maintained by each participant or node in a large network.

Banks could save between ___ and ____ % of costs if artificial intelligence is used.

One of the ways the online marketplace lenders have reduced costs is through the streamlining of the traditional loan underwriting process.