FTA 4003 - Commercial Banking and FinTech

Description

The FinTech revolution is creating significant disruption to the traditional processes of managing and regulating financial institutions, especially banks. Digital technology is increasingly altering basic financial intermediation functions such as payment processing, risk management, information dissemination, price discovery, capital raising, and consumer expectations concerning access to funds and the timing of loan decisions. Understanding, assessing and forecasting FinTech’s impact on banking is particularly important because proper management and oversight of financial institutions is essential to the efficient operation of the national, as well as global, economy. In this course, students will learn about the principles and practices of commercial bank management, bank regulation, and the tradeoffs between risk and return. Challenges presented by the FinTech evolution, including traditional and emergent competitors as well as demographic, social, and technology forces driving change in the industry, will be integrated throughout the entire course.

Learning Objectives

After completing this course, students will be able to:

• Describe the evolution of banking, the organizational structure of commercial bank products and services, and the economic and social role of banks.
• Assess how financial technology (FinTech) is reshaping the function and operation of financial institutions, especially banks.
• Analyze the distinguishing features of banks as financial intermediaries, their unique characteristics as businesses, and their sources of value-added in the economy.
• Discuss the function of the Federal Reserve System in regulating banks and conducting monetary policy.
• Evaluate bank income sources and capital usage.
• Appraise how banks identify, measure and control risk and the effect of risk on profitability and growth.
• Debate the future of impact of FinTech and FinTech enterprises on the financial services industry.