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 insight 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 No.1 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 "FinTech Foundations and Overview" 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 learners 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.
1.9: FinTech For Consumers
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來自 The Hong Kong University of Science and Technology 的課程
FinTech Foundations and Overview
71 個評分
The Hong Kong University of Science and Technology
71 個評分
課程 1（共 4 門，Specialization FinTech: Finance Industry Transformation and Regulation）
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 use Usenet or we used old school technology, I was on the Internet
I was on e-mail and most people didn't have it
and I was a 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?
24/7, any location in the world, anywhere, anytime
anyway, 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 have bill pay for free very conveniently
Now, you may say, "Yeah, so what?"
I have dealt with my bank today
Well, that's interesting and it illustrates an 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 F irst gave them three 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 could do that needs
secure Unix because we know how 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 at every state in America
They were one of the fastest growing branch
One of the fastest growing banks in America, very fast drove
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
to 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 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
then 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 stock trading online and no one to answer the phone
no customer service, and no place to go into
Security First went from raising
about $10 million early in their history to being worth about five years later
when they were bought out and merged into another company
after the dot-com crash, about $516 million
And that's after the crash and after they have sold other parts of the 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 of PayPal came up with lots of ideas for
banking services and the CEO of PayPal said
"We have lots of ideas but it turns out what people wanted was to 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 a convenient attractive services as consumers
and 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
Some things are very innovative and very exciting
and there's things that we can do today like crowdfunding
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 exciting. That's new
It 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 could before
Big banks could do it. I couldn't
And so, as an investor, there's opportunity
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 trapped and they started looking inward and being cautious
Ten years ago, Apple brought out the iPhone
In that time, banks have become more inward looking
and tech firms have developed a proliferation of applications
An explosion of applications that mean consumers look to and trust 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 with millennials saying as 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 then, the majority of millennials surveyed said
"I'd rather go to the dentist."
This is a problem for them
They like Amazon
They don't like their bank
because Amazon is convenient
Amazon is fast. Amazon as 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
