Our primary goal is to help you to understand FinTech and to become more confident and persuasive in your ability to analyze and make recommendations to executives within the finance industry regarding how to react to these changes. This FIRST MOOC ON FINTECH IN ASIA-PACIFIC offered by HKUST presents the views of several professors from the top business school in Asia as well as perspectives from industry professionals. HKUST has been ranked for many years as the number one EMBA program in the world, as the number one Finance program in Asia, and as the top MBA program in Asia by multiple independent rating and review journals and surveys. This course offers the combined strengths of HKUST in Business, Finance, and Technology as one the world's leading academic institutions on an important area of technology and business innovations. For students from outside Asia, this also gives an insight into changes happening in the most advanced FinTech markets of the world, since Asia leads worldwide in FinTech adoption and creative innovations. This course (FinTech Foundations and Overview) is part of the HKUST FinTech specialization, there will be 3 other courses in the specialization including FinTech Security & Regulation (RegTech), FinTech Risk Management, FinTech Innovative Disruption: Implications for Society. The FinTech specialization will be launched in Fall 2018, stay tuned!
1.8: FinTech For Investors (Part 2)
Loading...
來自 The Hong Kong University of Science and Technology 的課程
FinTech Foundations and Overview
12 個評分
從本節課中
Introduction to FinTech
In this module (week one), students will gain a multi-dimensional perspective on what FinTech means from the perspective of large firms (and older participants in the industry - e.g. dinosaurs), entrepreneurs, investors, and consumers. Examining what FinTech is, or is not, provides a foundations upon which students can build for better understanding of opportunities and changes.
與講師見面
Theodore Henry King CLARKAssociate Professor
Information Systems, Business Statistics and Operations Management Department
Welcome back to our course on FinTech foundations and overview.
Today in our session I'm going to talk about FinTech for consumers.
And I decided to talk to myself or talk to you as a FinTech consumer.
And the reason that I feel like I'm qualified to talk from
a consumer perspective is that I am a dinosaur and a pioneer.
I've been around a long time,
I've dealt with technology a long time,
but I was using
training and buying and selling things on the internet before there was a web.
Back when we used usenet or we used old school technology, I was on the internet.
I was on email when most people didn't have it.
And I was an early pioneer.
I was using online banking in 1995 with the first internet bank in the world.
And so I've been doing FinTech kinds of things,
using e-trade and others for a long time.
What do I like about technology and finance?
What drives consumers?
Now, not all consumers are like me.
Some are very young people like we have with our discussion of FinTech for investors.
But what's really driving this move to technology is convenience 24 by seven,
any location in the world, any where,
any time, any way, and speed.
I want trades fast,
I want to be able to do things,
I want to be able to use automation,
I like tech, I like the capabilities of advanced technology.
Now, let me talk for a moment about early tech in FinTech.
An early example of technology and convenience was security first network bank.
Security first network bank was the first,
what we might call direct bank or branchless bank in the United States.
It was a bank that had no branches, had no services,
the first Internet only bank to be approved by the FDIC and insured by the FDIC.
They used Internet technology in 1995 to bring out online checking,
online accounts, you could access any ATM anywhere in America for free.
You could do deposits by mail or wire in
money if you chose to from another bank for free.
Bank services were free and very convenient.
You could pay bill for free very conveniently.
Now you may say, yeah so what?
I have that with my bank today.
Well, that's interesting and it illustrates a important concept of FinTech.
Security first was first to offer branchless banking and
Internet-only banking because they have a low cost structure,
they could offer services free that other banks charge for,
like checking accounts used to cost money.
Security First gave them free and that was pretty
good and they offered technology in a time when banks were saying,
I don't think we can do this.
This is not secure.
Security-First started as a software company.
They started in the encryption and military systems area and that technology people said,
I wonder if there's something in business we can do that needs
secure Unix because we don't want to do that and they
came up with banking and so they launched the world's first Internet bank.
Consumers loved it.
Within a year they had customers in every state in America.
They were one of the fastest growing banks in America,
very, very fast growth.
Their stock price exploded.
Of course, this was during the dot com boom or leading up to the dot com boom.
But the price went up and up and up as they kept gaining more and more investors,
more and more customers,
more and more enthusiasm.
Banks started investing in them and saying,
we don't know where this is going but this looks exciting.
This is new tech.
This is a new opportunity.
What happened to Security First?
Well, within about three years,
they were no longer alone.
By 1998/1999, other banks started coming out with online banking.
Now they had three to four years by themselves to grow fast,
to get attention and get exuberance and other banks were sitting back and saying,
I wonder if they're going to get hacked,
I wonder if they're going to go under,
I wonder if this is going to melt down,
I wonder if this is going to be a problem.
And Security First proved that they had really,
really good security and they could make Unix and the Internet
a secure banking environment that no one could break into.
That was important. Other banks said,
we think we could do that.
And so they got on the tech bandwagon and we saw Bank of America,
Citibank, Wells Fargo, US Bank,
HSBC and many other banks opening up internet banking services,
checking accounts online, other services online.
That was a problem for Security First because what
happened is that consumers who loved FinTech or they loved their branchless banking,
it turns out they would rather have
free internet banking and a branch than free internet banking without a branch.
It wasn't that they didn't like the branch it wasn't that they didn't like their bank.
They wanted the convenience.
They wanted the services.
It's not that we want just start trading online and no one to answer the phone,
no customer service and no place to go into.
If Merrill Lynch will offer branch support services and low cost online trading,
well that's better than e-trade which has only one part of it.
And so security first found itself in trouble and they ended up- well their growth slowed
greatly and some customers switched to
their traditional bank that they'd used in the past and their online services.
And so Security First ended up selling the bank.
They kept the software,
they kept the services and they provided software to other banks.
They said, hey there's more than one way to make money in this.
A lesson learned for FinTech firms.
You don't have to own it all.
You don't have to be the only one doing it.
Maybe you'll make more money selling
your services to banks than you will providing it to consumers.
If the banks value it and it's important for them to keep their business,
the consumers don't care who provides them the service,
they care that you give them convenience.
And so a bank may be more convenient,
bundling great services and innovative services with traditional services.
That's what happened to Security First.
So they sold the banking business off to a large bank in an auction,
someone bought their business as well as their software and technology but they kept
the R&D and software development side to do work for other banks and other industries.
That was eventually bought out in a bid,
in a merger bid where Security First went from raising about 10 million dollars
early in their history to being worth about five years later when they were bought out
and merged into another company after the dotcom crash about 516 million dollars.
And that's after the crash and after they had sold other parts of their business.
So this is a success.
This is a good firm and it's a good service.
Bottom line, what do we want?
We want convenience.
We want to be able to trade anywhere,
we want to be able to buy and sell things,
we want to be able to move money around from one account to another,
we want what WeChat can offer in China or we
want what Apple can provide us or what PayPal can provide us.
The ability PayPal came up with lots of ideas for
banking services and the CEO of PayPal said,
you know we have lots of ideas but it turns
out what people wanted was be able send money from
one person to another via email and they couldn't do that via traditional banking.
So PayPal came in because banks weren't there.
What we want is convenient attractive services as consumers in FinTech is
fast in pioneering coming up with new ways of doing business and it opens up new doors.
Some people have said nothing is new.
I would say some things are very new so things are very innovative and very
exciting and there's things that we can do today like crowd funding,
interacting with companies in ways we never would see before.
There are currencies that allow us that proliferation of options to invest,
speculate, lose money, make money.
That's kind of exciting. That's kind of new.
May also be very risky.
There's new opportunities for interacting with services and just aggregating services.
I can put an algo trader on my PC
and do things as an investor that I never couldn't before.
Big banks could do it. I couldn't.
And so as an investor, there's opportunities.
As a consumer, this is a proliferation of flexible,
convenient, attractive offerings that I could never have without this FinTech revolution.
Finally, 10 years ago,
the banking services melted down and banks got scared.
They were drunk and they started looking inward and being cautious.
Ten years ago, Apple brought out the iPhone.
In that time, banks had become more inward looking
and tech firms have developed a proliferation of applications.
An explosion of applications.
That mean consumers look to entrust Amazon, Alipay,
Tencent, eBay, PayPal as much or more than they do their banks.
In fact, many millennials don't even want to deal with banks.
Survey was done of millennials say against consumers.
Which would you prefer?
Would you prefer to go into your bank and sign loan documents
or do you prefer to go to the dentist and have a cavity filled?
And the majority of millennials surveyed said,
I'd rather go to the dentist.
This is a problem for banks.
They like Amazon.
They don't like their bank because Amazon is convenient.
Amazon is fast. Amazon is easy.
The bank is trouble.
And so that's what we want as consumers.
We want easy, fast, convenient,
powerful, flexible, adaptable, innovative.
That's what we're looking for and that's exciting.
And the tech is not new.
Many of these techs have been around a while but the applications,
those are revolutionary and they're going to change the future of banking.
Thank you.
