Course 2024-2025 a.y.

Classes: 31 (II sem.)

Instructors:
Class 31: ANNA EUGENIA OMARINI

None, in particular. Although it is suggested that students have attended the basic course in Financial Markets and Institutions in order to fully exploit the value of the course.

The banking industry is changing widely and consistently because financial digital technologies - such as Open-API, cloud, new algorithms, and BigData - are playing an increasing role in the financial services industry side by side with evolving regulations and new competition. FinTech companies are transforming and boosting the industry to evolve introducing new regimes and structures, where new services and business model frameworks are also taking the industry toward a set of broader ecosystems of different and interconnected businesses. In this process, FinTechs, Internet giants, and incumbent financial institutions are all changing the way the industry is developing, producing and delivering its value to customers. The aim of the course is to provide an interdisciplinary approach to a deep understanding of the ways FinTech companies are impacting the different vertical businesses (such as payments, lending, investment, etc.), and then consider how market conditions and competition are evolving, and also delve into the most relevant managerial implications and consequences for the business, the stakeholder system, and the whole industry too.

The course is focused on providing professional knowledge and effective tools to students by assuming a dual perspective of analysis, namely: those working within banks (especially retail and private banks), FinTech companies, and also those who are interested in developing their own FinTech business.

The course is also addressed to those who, for various reasons, are called to collaborate with Banks as external partners (consultants, private equity, venture capitalists, technology vendors, and others).

The curriculum is organized by giving students a whole picture of the evolution of the banking industry and developing a broad understanding of how Banks and FinTechs are reshaping the financial services industry and which are the new challenging scenarios.

The course is also organized by vertical-product areas (namely payments, lending, investments and neobanking). For each area, we start by analyzing the marketplace, the business from <as it is> to <as it is going to look like>.

The approach undertaken will give the student an understanding of strategies, economics, technologies applied, and the way competition is changing business features and customers' expectations.

Students will also be able to develop a theoretical and a strong practical understanding of the forces transforming the banking and financial services industry at an international level.

To reach this goal, the course is going to have an interdisciplinary approach and be both interactive and interdisciplinary to deepen students' understanding of the major economics of Banks and FinTech companies and encourage in the student a critical thinking perspective and a creative entrepreneurial spirit.

The whole course is supported by examples, case studies, guest speakers, and live discussions on the main topics, for which active class participation is essential.

At the end of the course student will be able to...

At the end of the course, students will be able to

• Understand digital innovation and financial transformation.
• Summarize the domains of FinTech companies and their main drivers.
• Describe the FinTech market and make arguments for what in the sector is emerging, changing, and transforming.
• Outline the major challenges FinTech companies and incumbents will face over the next years.

 

The course is structured into four modules aimed at:

1. Understanding the banking business and the status of the FinTech landscape (industry drivers, different product areas - such as money and payments, lending, and investment -), and looking for the future trends in the industry.
2. Developing a deep knowledge of the market structure and its digital transformation (supply-demand value chain, incumbents and new competitors, business models in banks and FinTech companies).
3. Getting to know real examples of financial technology and how companies are changing the customer's banking experience.
4. Developing a forward-looking perspective to understand the new financial services industry framework.

 

Digital transformation is radically rewriting the rules of competition in the financial service industries.

In this course, we are exploring the forces shaping the new competitive dynamics: product and service digitization, and changing customer demands. Together, these forces give rise to completely new market structures that force organizations to transform themselves and compete in new ways.

 

By the time you finish this course, you will learn how to approach all aspects of FinTech innovation with a special focus on the most transformative impacts in the industry.

You will also have mastered important concepts learned from best practices in digital industries and seen how firms in financial services are embracing the new rules of competition.

 

Students will also gain knowledge, mastering an interdisciplinary approach and a critical thinking perspective in the following areas:

• Identify the main forces of financial transformation.
• Explain the origins and drivers of the FinTech phenomenon and its hype.
• Understand and assess the main features transforming the financial services industry.
• Discuss the impact of FinTech in the financial markets.
• Understand the unique features of Banks and FinTech development.
• Explain the consistency of the FinTech companies’ business models.
• Reflect upon the role of digital platforms in the FinTech revolution and the evolving of business ecosystems.

At the end of the course student will be able to...

At the end of the course, students will be able

• To understand the major changes in the financial sector.
• To assess the impacts of the major environmental forces of change on the strategies and performance of FinTech companies.
• To appraise the role of FinTech companies in modern society.
• To understand and assess the resiliency of different business models of FinTechs
• To conduct an independent search and review of specialized academic and non-academic literature on banking, and identify and evaluate relevant information.

 

By the time students finish this course, they have mastered the transformational forces of digitalization and the new competitive dynamics it gives rise to, and learned from leading financial companies which will share their entrepreneurial and managerial challenges.

• Guest speaker's talks (in class or in distance)
• Collaborative Works / Assignments
• Interaction/Gamification

The learning experience of this course includes, in addition to face-to-face lectures, case discussions, group works, real examples and interactions with Guest Speakers from companies that are coping with these issues.

• Face-to-face lectures (cases, readings, and assignments). The class time is overall used to explain syllabus topics, discuss them and outline practical examples. Because the course is willing to be interactive, you are expected and encouraged to take part in class discussions. The goal is to deepen students' understanding of the economics of FinTech and encourage both a creative and an entrepreneurial spirit. Students are expected to read, whenever required, the materials before class. The use of cases and external speakers aims at better connecting the knowledge covered in the course with real-life examples. The interaction between the instructor and students during the discussions and the presentations helps students understand how to handle managerial decisions both in Banks and in FinTech companies.
• Guest speakers: there are several sessions with outside experts including consultants, founders of early-stage start-ups and well-developed FinTechs in the market, managers from technology companies, executives in financial services, and venture capitalists.
• Group projects: there are different formulas for group projects, which will be explained in detail during the first lesson. They are an opportunity for students to apply the knowledge and tools covered in the course. 

	Continuous assessment	Partial exams	General exam
Written individual exam (traditional/online)			x
Collaborative Works / Assignment (report, exercise, presentation, project work etc.)	x
Peer evaluation	x

Students can choose the attending status, and this option can offer different learning experiences and a different valuation process.

 

In this case, the final evaluation takes into account the following learning components:

• Two group assignments (differently weighted but overall counting for 55% of the final grade). They are two different projects and differently graded according to specific criteria. They are both designed to verify the student's ability to:
  • Apply the appropriate tools and methodologies learnt in class.
  • Work on a team and organize and present effectively the relevant outcomes.
• Final written exam (45% of the final grade). It is based on a mix of open questions (essay style)  aiming to assess the student’s learning level.

 

More detailed information will be delivered during the first lesson in class.

General final written exam (100% of the final grade) based on a mix of open questions (essay style).

 

The exam aims to assess the knowledge of the course materials, the understanding of key concepts presented in the course readings, and the ability to summarize examples and business case analysis from the course.

 

More detailed information will be delivered during the first lesson in class.

• Book: Omarini A., 2019, Banks and Banking: Digital Transformation and the Hype of Fintech. Business impacts, new frameworks and managerial implications, McGraw-Hill publisher

The book is available in both a paper and an ebook version.

 

• Other relevant materials (articles, cases, class notes, news articles, slides) are posted on the Bboard and/or handed out in class.

 

 

Further details on the fewer selected parts for the attending students will be provided during the first lesson in class.

 

• Book: Omarini A., 2019, Banks and Banking: Digital Transformation and the Hype of Fintech. Business impacts, new frameworks and managerial implications, McGraw-Hill publisher

The book is available in both a paper and an ebook version.

 

• Other relevant materials (articles, cases, class notes, news articles, slides) are posted on the Bboard.

 

 

Further details on the fewer selected parts for the attending students will be provided during the first lesson in class.