Exam 18: Fintech Risks

Bitcoin (BTC), Litecoin (LTC), Ether (ETH), and XRP (XRP) are examples of privately issued digital currencies.

Peer-to-peer (P2P) lenders emerged prior to the 2008 global financial crisis and focused predominately on inter-bank lending.

In the 1990's, the internet allowed which of the following to occur:

The inventor of the cryptocurrency Bitcoin is widely known in the cryptocurrency world.

Half a dozen or more of the largest crypto exchanges have failed since the mid-2014 while others have been shut down by authorities.

Banks that partner with fintech companies can leverage fintech companies' technology while maintaining the bank's reputation to better serve their customers.

The term "narrow banking" refers to when traditional banks would take deposits and hold only safe, liquid assets, leaving the borrowers and savers matching to fintech platforms.

Millennials are considered digital natives with a high degree of technological fluency, resulting in a strong comfort level spending money digitally and purchasing apps.

Upon consensus in the distributed ledger, all nodes maintain their own identical copy of the ledger and transactions.

Artificial intelligence and machine learning are appropriate for data analysis and report generation but are not yet ready to use for regulatory compliance, surveillance, data quality assessment, and fraud detection.

The largest artificial intelligence deal in history was made in March of 2018 by S&P Global through the acquisition of the fintech firm Kensho, valued at $550 million.

Protections seen in the stock trading world also exist for cryptocurrencies.

China leads other countries in adopting fintech at 69% compared to the US at 33% and Hong Kong and South Korea at 32% respectively.

The process of computational tools used to handle tasks traditionally handled by humans is called