Fintech - Disrupting Finance
Is your business at danger of being disrupted?
Overview

Over the last few years, information technology has disrupted a number of sectors, including the entertainment, hotel, and taxi businesses. The Fintech - Disrupting Finance program provides an overview of how it is doing the same to finance. Since the global financial crisis, it has been apparent that banking is inefficient, costly, riddled with conflicts of interest, prone to unethical behavior, and able to generate huge crises. At its core however, finance is an information business with three basic functions: it matches savers to borrowers, it provides a payment system and it provides insurance. This program provides an introduction to how these functions are all being disrupted by alternative finance institutions.

The term alternative finance means different things to different people. Investment bankers use it in the context of alternative investments, such as non-traditional asset classes, alternatives to stocks and bonds, or in reference to shadow banking activities like private placements of corporate debt funded by institutional investors instead of banks. Economists studying developing economies use it to describe the sources of financing and payment channels that emerge to address the needs of individuals and businesses in economies lacking a functioning banking system. In this program, we discuss elements common to both uses of the term: specifically, the channels of finance that are emerging outside the regulated banking system in both developed and developing economies.

 

How you will benefit

  • Learn about how technology is disrupting the world of finance 
  • Learn about the two basic principles that underlie the basic fintech models
  • Understand how big data analysis enables us to draw conclusions on investor behavior in the aggregate
  • Understand which types of jobs are most likely to get disrupted
  • Understand how distributed ledger technologies are disrupting other markets such as law, contracting, and corporate governance 
 

 

Content

A Basic Framework

  • Framework of asymmetric information in which banks operate
  • Contracting theory
  • Explicit and implicit contracts
  • Symmetric and asymmetric information
  • Agency problems and solutions
  • Overview of the alternative finance space today

Online Alternative Channels of Finance

  • Alternative finance market
  • Technology-enabled online channels or platforms: intermediaries in the demand and supply of funding to individuals and businesses outside the traditional banking system
  • Differentiating between the various types of alternative online finance models
    - Type of fundraiser (consumer, business, non-profit)
    - Source of financing (individual/retail or institutional funder)
    - Financing instrument (equity, debt, other)
  • Viability of various models and their disruptive threat to incumbents, banks, and asset managers
  • Challenges to policy makers and regulators


Brainstorming Group Sessions

Threat Analysis: What industries/job descriptions face disruption and why?

Opportunities Analysis: What opportunities are there in the future for both the incumbents and the disruptors?

 
Credit Analytics and New Forms of Data

  • Credit assessment: does having greater access to financial information about loan applicants provide banks with a comparative advantage, relative to alternative lenders?
  • P2P/marketplace lending: is the key distinguishing factor uniting P2P borrowers that they represent the “poorest risk quality” and were turned down by bank lenders?
  • New forms of data as our social and commercial engagements become digitalized

 
Monetary Innovation and Distributed Ledgers: Bitcoin, Blockchain and Beyond

  • Framework for understanding the uses, prospects, and obstacles faced by alternative currencies such as bitcoin
  • Emerging interest by governments and central banks to introduce bitcoin-like currencies: what are the implications for cash and privately issued alternative currencies
  • ‘Non-currency’ applications of the distributed ledger technology that form the basis for cryptocurrencies
    - Securities settlement
    - Asset provenance
    - Information management
    - Smart contracts – blockchain technology’s 'killer app'?
    - What problems is distributed ledger technology solving right now? What solutions are 5-10 years away? What challenges might never be solved with blockchain technology?


Workout

Can you or your organization take advantage of disruption? How are you doing so now?

Case studies from the audience

Who should attend

This program is highly recommended for any professional who is interested in understanding how technology is likely to disrupt the finance business.

Faculty
Raghavendra Rau 

Ragavendra RauRaghu Rau is the Sir Evelyn de Rothschild Professor of Finance at the Cambridge Judge Business School. He is also Head of the School's Finance & Accounting subject group, and Director (Research) of the Cambridge Centre for Alternative Finance (CCAF). Furthermore, Raghu is a member of the Cambridge Corporate Governance Network (CCGN). His research interests include empirical corporate finance, information economics, behavioral finance, and game theory. Raghu'spapers focus on why investors behave the way they do in real life and he has also published several book chapters on behavioral finance.

Accreditation

 CFA Institute - CE credit hours
Amsterdam Institute of Finance is registered with CFA Institute as an Approved Provider of continuing education programs. This program is eligible for 18 CE credit hours as granted by CFA Institute. If you are a CFA Institute member, CE credit for your attendance at this event will be automatically recorded in your CE Diary.
 


Dates & fees
21 - 23 June 2017 € 3,500

Program fee includes all study materials, books and software that are required for the program as well as daily luncheons.
Program fee is exempt from VAT for clients located in the Netherlands. For other EU and Non-EU clients, VAT may be due by client and will not be charged by AIF. Fees may be subject to change.
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