Будущее рынка финансовых услуг и финтеха

2019/2020

Статус: Дисциплина общефакультетского пула

Кто читает: Международный институт экономики и финансов

Где читается: Международный институт экономики и финансов

Когда читается: 1, 2 модуль

Преподаватели: Кривошея Егор Артемович

Язык: английский

Кредиты: 3

Контактные часы: 32

Full Syllabus

Abstract

The course develops practical and theoretical approaches for understanding and analyzing the key elements of the financial services market and, in particular, financial technologies (FinTech). The course covers the basic definitions and concepts associated with the financial services industry in its present form and potential future forms, with particular emphasis on the views on the development of the financial services ecosystem, its participants, their roles and interaction among themselves. Attention is also paid to micro, macro and megatrends in the industry. The course is intended to provide students with the holistic view on the relevant issues related to the financial services industry both in Russia and in the world. The course teaches students basic strategic analysis tools such as value chain analysis, business models, marketing/market research, foresighting, scenario planning, analysis using the CYNEFIN approach. In addition, each of the tools is further practiced on the examples and cases from Russian and global practice, which allows students to get acquainted with the latest modern trends related to the financial services market in Russia and the world. One of the lessons of the course (lecture and seminar) is based on the practical immersion of students in a specific area of the financial services market within the foresight session, where they act as experts on a selected topic. All the remaining classes are built on interactive learning approaches, where the audience is constantly involved in the discussion process. The course is supported by a weekly newsletter and frequent material discussion using online social medial platforms. The course requires a basic understanding of financial services and banking, however, the formal completion of such courses is not a prerequisite. The course is designed for students of the 1st and subsequent years of study at ICEF BSc programme, as well as ICEF graduate students. The course is based on lectures, seminars, the study of specific cases and independent, as well as group work of students both in the audience and outside it. Course is taught during 1 semester. The course ends with a final exam.

Learning Objectives

to develop students' critical and analytical thinking in the context of the financial services market
to help students master a wide range of knowledge and information on the basics of the financial services industry and fintech, the ecosystem and its main participants based on practical cases and world experience with refraction to the Russian market.
to teach students not to be afraid to think about future development scenarios, but rather, actively apply them in practice. Foresighting, which is currently popular among representatives of major commercial and non-profit organizations and which is used to predict possible scenarios, is a useful tool that students will master during the course to use it in the future or present workplace
to help students analyze the effects of the development and change of trends relating to any participants in the ecosystem of the financial services market

Expected Learning Outcomes

identify current trends related to the financial services industry
use the DLTs technology and its components
critically assess if the product fits target audience
analyze the motives of the companies in the financial services industry
analyze the roles of the regulators in the financial services industry
can apply static strategic analysis tools
apply relevant knowledge from the course to identify future states of the financial services segment
apply dynamic strategic analysis tools

Course Contents

Overview of the financial services market. Introduction to FinTech
Classification of financial services. Key participants, services, problems. Russian specifics. Micro and macro trends. Definition of financial technologies (FinTech). Introduction to the “value chain” strategic tool. FinTech startups market overview. Fintech in Russia. An introduction to the ecosystem of financial services. Case Studies
Distributed ledger technology and cryptoindustry
Blockchain definition. Blockchain vs Distributed Ledger Technology. Current state of the cryptoindustry. ICO and its statistics. Ecosystem of the cryptoindustry. Relevant technological components of the cryptoindustry ecosystem. Consensus protocols and their types. Tokens nature and taxonomy. Smart contracts and DLT automation. DLT architecture. Oracles and their types. Classification of DLTs. DLT use cases and industry applications. DLT choice models and strategies. DApps and DAOs. Cryptoexchanges and their role in the ecosystem. BigTech companies, incumbents and their strategies with the DLTs. Current DLT challenges. Opportunities for DLT development. Scenarios for DLT future.
Consumers and their role in the financial services ecosystem
Basic definitions (consumer vs customer). Client portrait/profile. Key trends related to the consumers and their behavior in the financial services market. Customer engagement by the financial institutions. Generational shifts. Millennials and Generation Z. Consumers excluded from the financial services market. Country policies to increase financial inclusion. Introduction to marketing. Introduction to market research and consumer behavior. Introduction to the approaches for finding company/product vision. A hands-on group product marketing exercise for the relevant target audience.
Banks and other traditional financial institutions and their roles in the financial services ecosystem
Definition of a traditional financial institution (hereinafter - TFI). Key representatives of TFI with examples. Commercial banks. System-forming banks in Russia. Investment banks. Insurance companies. Brokers. Investment companies. Non-banking financial institutions. Systemic risk and problems associated with TFI. The main micro and macro trends. Innovations transforming TFI. TFI vs fintech startups. Strategic interaction between TFI and fintech startups. “Moments of Truth” about TFI services in the eyes of consumers. New generation financial institutions. Financial innovation models. US-China model of financial innovation. European model of financial innovation. Russian model of financial innovation. Mixed models. TFI ecosystems in Russia. Introduction to the main business problems and approaches to their solution (e.g. product mix). Introduction to business models. Case studies.
The state and the regulator and their roles in the financial services ecosystem
Overview of existing regulators in the field of finance in Russia and the world. Classification of regulators and examples of government roles in the financial services ecosystem. The state as a direct participant in the financial services market. Stimulating measures for the development of financial services. The roles of the state and regulation in the development of financial technologies. The main trends in regulation. The state as a leader. Digital economy development. Chinese social score case. Case studies.
New and other players and their roles in the financial services ecosystem
Identification of relevant new players in the financial services industry. Blurring nature of fintech and financial services industry: characteristics of projects, areas of business, examples. Identification of other players and the reasons for their interest and participation in the financial services market. Roles of external players in the development of the financial services market. Introduction to EPESTL. Practical cases. Introduction to static strategic analysis tools.
Practical session - Foresight session
Introduction to the foresight methodology. Conducting a foresight session involving students as experts on a selected topic. Introduction to scenario planning. Summing up the results and building a foresight map and scenarios.
The future of financial services
Scenarios of the financial services industry. The future of financial services. Future of skills and knowledge related to the financial services. Key technologies related to the financial services. Key megatrends. Scenarios related to Russia and its development. Dynamic scenario planning models. Introduction to the CYNEFIN Method. A review of advanced strategic analysis techniques. Summary of the key course highlights.

Assessment Elements

Out-of-the-class group assignment
Final exam

Interim Assessment

Interim assessment (2 module)
0.65 * Final exam + 0.35 * Out-of-the-class group assignment

Bibliography

Recommended Core Bibliography

Barro, R. J. (1972). A Theory of Monopolistic Price Adjustment. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.364DCCF4
Baxter, W. F. (1983). Bank Interchange of Transactional Paper: Legal and Economic Perspectives. Journal of Law and Economics, (3), 541. https://doi.org/10.1086/467049
Benigno, G., & Benigno, P. (2008). Implementing International Monetary Cooperation Through Inflation Targeting. Macroeconomic Dynamics, (S1), 45. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.cup.macdyn.v12y2008is1p45.59.07
Cúrdia, V., & Woodford, M. (2016). Credit Frictions and Optimal Monetary Policy. Journal of Monetary Economics, (C), 30. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.eee.moneco.v84y2016icp30.65
Jean-Charles Rochet, & Jean Tirole. (2002). Cooperation Among Competitors: Some Economics Of Payment Card Associations. RAND Journal of Economics, (4), 549. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.rje.randje.v33y2002iwinterp549.570
John B. Taylor. (2012). Monetary Policy Rules Work and Discretion Doesn’t: A Tale of Two Eras. Journal of Money, Credit and Banking, (6), 1017. https://doi.org/10.1111/j.1538-4616.2012.00521.x
Krivosheya, E., & Korolev, A. (2016). Benefits of the retail payments card market: Russian cardholders’ evidence. Journal of Business Research, (11), 5034. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.eee.jbrese.v69y2016i11p5034.5039
Michael Woodford. (1998). Doing Without Money: Controlling Inflation in a Post-Monetary World. Review of Economic Dynamics, (1), 173. https://doi.org/10.1006/redy.1997.0006
Odior, E. S., & Banuso, F. B. (2012). Cashless Banking in Nigeria: Challenges, Benefits and Policy Implications. https://doi.org/10.19044/esj.2012.v8n12p%p
Pierpaolo Benigno, & Michael Woodford. (2005). Inflation Stabilization And Welfare: The Case Of A Distorted Steady State. Journal of the European Economic Association, (6), 1185. https://doi.org/10.1111/(ISSN)1542-4774/issues
Robert E. Lucas. (2000). Some Macroeconomics for the 21st Century. Journal of Economic Perspectives, (1), 159. https://doi.org/10.1257/jep.14.1.159
Rotemberg, J. J., & Woodford, M. (1997). An Optimization-Based Econometric Framework for the Evaluation of Monetary Policy. NBER/Macroeconomics Annual (MIT Press), 12(1), 297–346. https://doi.org/10.1086/654340
zlem Bedre-Defolie, & Emilio Calvano. (2013). Pricing Payment Cards. American Economic Journal: Microeconomics, (3), 206. https://doi.org/10.1257/mic.5.3.206

Recommended Additional Bibliography

John B. Taylor. (1999). A Historical Analysis of Monetary Policy Rules. NBER Chapters, 319. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.h.nbr.nberch.7419

Course Syllabus