Exam 18: Fintech Risks

Demand for mobile technology is controlled by demographic factors, specifically the baby boomer's generation and adoption of the smart phone.

The Financial Stability Board (FSB) defines fintech as "technology-enabled innovation in financial services that could result in new business models, applications, processes or products with an associated material effect on the provision of financial services."

Financial institutions are reluctant to incorporate artificial intelligence and machine learning to access credit quality, price and market insurance contracts, and automate client interaction.

Fintech adoption rates, which measures fintech users as a percentage of the digitally active population, is universal across developed countries.

The changing supply and demand since 2009 has changed the banking services offerings leading some banks to replace banking services completely.

Benefits to machine learning algorithms include the identification of patterns that are correlated with other events or patterns that are often not recognizable to human eyes.

Which industry is most likely affected by fintechs:

Distributed ledger technology takes on more of a

In late 2017 and early 2018, a dramatic rise and fall of cryptocurrencies took place and is referred to as the 2018 Cryptocurrency Crash.

PayPal is the most well-known P2P payment services with 267 million accounts.

Crowdfunding is a method of raising money from collective efforts of individual investors and customers and can be launched through social media platforms.

"Crypto" in cryptocurrencies refers to the complicated cryptography that allows for a digital token to be generated, stored, and transacted securely and anonymously.

Distributed ledger technology has potential uses in payments, clearing and settlement activities due to potential efficiency gains from the technology.

Demand for mobile technology and an explosion in data traffic started largely through the unveiling of the first iPhone in 2007.

Small businesses and riskier consumers faced risk adverse banks post the 2008 global financial crisis.

A mobile wallet is an app on the mobile device that stores payment information from a credit or debit card.

When compared to euro, gold, and S&P500, crypto-assets historically have:

The SEC leverages big data to detect possible fraud and misconduct through the use of machine learning to identify patterns in the text of SEC filings.

What resulted from the 2008 global financial crisis?

Fiat exchanges are more difficult to set up than crypto-to-crypto exchanges due to increased reporting requirements from state and federal agencies.