p.4
Digital Mindset and Skills for Finance Professionals
How can accounting and finance professionals create a future-ready finance function?
By taking on a strategic leadership role and focusing on value creation for the business.
p.9
Digital Financing Innovations
What do digital insurance platforms offer in the B2B space?
Data analytics to optimize customer service and monetization.
p.2
Digital Financing Innovations
What does digital finance encompass?
New financial software, businesses, products, and novel forms of customer communication.
p.3
Challenges in Digital Finance Adoption
What challenge do businesses face while transitioning to digital technologies?
Maintaining organizational performance.
p.10
Digital Ecosystem Components and Characteristics
What is the significance of social media platforms in the Network Age?
They enable interaction and the development of networks, allowing businesses to reach and interact with customers.
p.10
Big Data and Its Implications for Finance
What is the role of big data analytics in business?
To unlock insights from large volumes of data, enabling better customer experiences and informed decision-making.
p.9
Digital Financing Innovations
What is a key feature of robo-advisers in digital financial advice?
They generate investment proposals based on data analysis.
p.2
Big Data and Its Implications for Finance
What are the four V's of big data?
Volume, variety, velocity, and veracity.
What is the primary function of blockchain technology in cryptocurrency?
It removes the need for a trusted central intermediary to process transactions.
p.6
Digital Financing Innovations
How does digital financing differ from traditional financing methods?
Digital financing uses technology to source necessary financing, reducing dependence on traditional methods like banks and investors.
Why did the start-up Crockd choose Airwallex as their payment solution?
For its focus on cross-border payment services and dedicated customer support.
p.9
Digital Payments and Their Importance
What was the primary benefit of using Airwallex for Crockd?
Access to competitive foreign exchange rates and cost savings.
p.2
Digital Transformation in Finance
What has shaped the history of human society according to the text?
The innovative use of technology.
p.4
Digital Ecosystem Components and Characteristics
What is a digital ecosystem service delivery model?
A model that uses digital technologies to streamline processes, improve customer services, lower costs, and increase productivity.
p.4
Digital Financing Innovations
What was the goal of the finance innovation lab created by the multinational company?
To explore how technology could address finance function problems and achieve USD30 million in efficiency gains.
p.2
Automation and Analytics in Finance
What is often referred to as Industry 4.0?
The combination of analytics, artificial intelligence, and automation in industry.
p.2
Challenges in Digital Finance Adoption
What challenges arise from the use of big data in finance?
The need for strong data governance.
p.7
Digital Financing Innovations
What was the purpose of Brewdog's 2020 crowdinvesting campaign?
To fund sustainable business initiatives.
What does social trading allow users to do?
Observe, 'follow', or copy the strategies of other traders.
p.1
Digital Transformation in Finance
What is the primary focus of Module 1 in the Digital Finance Ecosystem?
To evaluate the complexity of digital transformation and its impact on accounting and finance professionals.
p.10
Digital Financing Innovations
What are some applications of blockchain technology?
Digital currency transactions, contracting, crowdfunding, and e-wallets.
p.3
Digital Transformation in Finance
What are the key digital technologies reshaping the finance function?
Automation, analytics, and artificial intelligence (AI).
p.3
Digital Transformation in Finance
What is the role of analytics in finance?
To apply data analysis technologies to big data for actionable insights.
p.4
Challenges in Digital Finance Adoption
What were the key issues identified in the multinational company's finance function?
Inefficient manual processes, slow reporting, and lack of data for insights.
p.4
Digital Financing Innovations
How will the success of the finance innovation lab initiative be measured?
By targeted efficiency gains of USD30 million and redeployment of resources to higher value-creating work.
p.10
Digital Financing Innovations
How does a P2P system function?
It shares resources and data without relying on a central intermediary, allowing participants to access each other's technology infrastructure.
p.10
Digital Transformation in Finance
What are some technological enablers in digital finance?
Fast and mobile internet connections, AI, worldwide connectivity, intuitive user interfaces, and security technologies.
p.2
Role of FinTech in Digital Finance
What are FinTech companies responsible for?
Many technological innovations in digital finance.
p.3
Digital Mindset and Skills for Finance Professionals
What are enabling skills in the context of digital finance?
Broad and adaptable skills such as communication, data analysis, and financial analysis.
p.3
Challenges in Digital Finance Adoption
What is a significant risk for businesses regarding digital transformation?
Being left behind due to inadequate adaptation to digital models.
p.3
Digital Transformation in Finance
What is the impact of early adoption of technology on staff?
Higher percentage of staff affected by automation, especially in transaction-oriented processes.
p.4
Digital Financing Innovations
What is the importance of agile funding models in finance?
They balance ongoing core investments with riskier options, allowing for testing and scaling of successful investments.
p.3
Digital Transformation in Finance
How does automation benefit the finance function?
By replacing or complementing human labor.
p.3
Digital Mindset and Skills for Finance Professionals
What does a digital mindset involve?
Rethinking business and operating models alongside adopting new technology.
p.2
Impact of Emerging Technologies on Finance
What is the significance of the Network Age in finance?
It enables interconnectivity and creates exponential possibilities for value creation and consumption.
p.9
Digital Mindset and Skills for Finance Professionals
What role do review sites and comparison portals play in finance?
They evaluate and compare financial products and services.
p.6
Digital Financing Innovations
What is invoice financing?
A business borrows against or sells its accounts receivable to a third party to meet immediate cash needs.
p.5
Impact of Emerging Technologies on Finance
What is a transient advantage?
A temporary advantage that cannot be sustained as competitors quickly copy or improve on an innovation.
What is the common theme of digital money?
They exist electronically rather than in physical form.
p.6
Digital Financing Innovations
What is the significance of Kickstarter in crowdfunding?
Kickstarter has attracted over AUD4.6 billion in funding for nearly 500,000 projects, primarily through reward-based crowdfunding.
p.1
Role of FinTech in Digital Finance
How do FinTech businesses contribute to the digital finance ecosystem?
By leveraging technology to create cost-effective niche services that fill unmet needs.
p.11
Digital Payments and Their Importance
What types of services do traditional financial service providers offer?
Services like cash accounts, savings, investment management, money transfer, and insurance.
p.10
Digital Payments and Their Importance
What does NFC stand for and what is its primary use?
Near-Field Communication; primarily used for processing payment transactions.
p.4
Digital Mindset and Skills for Finance Professionals
What type of talent should finance functions seek to adapt to a changing landscape?
Talent with broad enabling skills and a digital mindset.
p.10
Role of FinTech in Digital Finance
What do digital finance institutions include?
FinTech companies and traditional service providers entering the financial domain.
p.3
Digital Mindset and Skills for Finance Professionals
Why is digital literacy important for finance professionals?
To assess the value of technologies and support their effective implementation.
p.9
Digital Financing Innovations
What is the trade-off associated with robo-advice?
Cost versus the benefits of personalized advice.
p.7
Digital Financing Innovations
What crowdfunding campaign did Brewdog launch in 2011?
Equity for Punks, raising GBP2 million from shares sold at GBP23.75 each.
p.2
Digital Transformation in Finance
How does the text describe the relationship between technology, business, and finance?
They have evolved together over centuries.
p.6
Digital Financing Innovations
What role does electronic invoicing play in digital financing?
It provides better coordination, faster transmission, and automated processing of invoices, encouraging quicker payments from customers.
p.5
Digital Financing Innovations
Why is it important to understand technology and innovation in digital finance?
To maximize their value to the business by evaluating potential applications, benefits, and risks.
What are cryptocurrencies considered in the context of finance?
Key potential disruptors that are decentralized and based on encryption technology.
What unique feature does Airwallex offer to its customers?
The ability to instantly create global accounts with local bank details.
p.1
Impact of Emerging Technologies on Finance
What emerging areas in FinTech are explored in the module?
Opportunities and roadblocks in developing, evaluating, adopting, or implementing digital finance innovations.
p.10
Digital Financing Innovations
What is a blockchain?
A type of distributed ledger that provides an ordered, timestamped, and highly secure record of transactions.
p.9
Digital Payments and Their Importance
What did Airwallex provide to Crockd that helped with scaling?
Locked-in foreign exchange rates upfront.
p.4
Automation and Analytics in Finance
What role do advanced analytics and automation technologies play in finance?
They deliver meaningful insights and help answer pressing business questions.
p.9
Digital Financing Innovations
How does the peer-to-peer insurance model work?
Members pay into a group account for small claims, reducing administration costs.
p.9
Digital Transformation in Finance
What technologies drive digital finance functions?
Blockchain, big data analytics, mobile devices, and AI.
p.2
Digital Ecosystem Components and Characteristics
What is the role of data in the Network Age?
It is the medium of exchange that enables digital finance and FinTech innovations.
p.7
Digital Financing Innovations
How much did Brewdog raise in its fifth round of crowdinvesting in 2018?
Over GBP26 million, valuing the business at GBP1.8 billion.
How did the first digital payment solutions draw inspiration?
From the established account-based system of bank transfers.
p.6
Digital Financing Innovations
What is lease-financing?
A method where an individual or business contracts for the use of an asset owned by the finance provider, without a large upfront payment.
What is the function of digital wallets?
They facilitate cash and credit payments and store various information.
p.7
Digital Financing Innovations
What is a significant criticism of Brewdog's crowdfunding campaigns?
Crowdinvestors pay a substantial premium for shares compared to corporate investors.
p.11
Role of FinTech in Digital Finance
What are FinTech companies?
Companies that integrate technology and financial services, emerging as start-ups or tech firms without a history in finance.
p.11
Digital Payments and Their Importance
How is 'digital payments' defined?
Transactions that occur electronically, central to modern commerce.
p.3
Digital Mindset and Skills for Finance Professionals
What skills are in high demand but short supply in the finance landscape?
Behavioral skills, data analysis skills, and finance skills.
p.5
Digital Ecosystem Components and Characteristics
What are the three key dimensions of the Digital Finance Cube?
Digital finance business functions, digital finance technologies and technological concepts, and digital finance institutions.
What is a key feature of online brokerage platforms?
They operate independently from time and location, requiring fewer staff and processing more orders at lower costs.
What is algorithmic trading?
A method that automatically initiates and manages orders on electronic trading platforms without human intervention.
p.6
Digital Financing Innovations
What are the different types of crowdfunding?
Donation-based, reward-based, crowdlending, and crowdinvesting.
p.5
Digital Ecosystem Components and Characteristics
What do digital finance institutions provide in the Digital Finance Cube?
They provide business functions as a service.
p.1
Digital Financing Innovations
What is the goal of Part D in the module?
To enable accounting and finance professionals to evaluate, plan, and implement digital finance innovations.
p.11
Impact of Emerging Technologies on Finance
What is the role of innovation in technology?
A change in the way technology is used, sustaining growth or creating disruption.
p.6
Digital Financing Innovations
What are the six business functions covered in the Digital Finance Cube?
Digital financing, digital investments, digital money, digital payments, digital insurances, and digital financial advice.
What are digital payments?
Payments that are initiated, processed, or received electronically.
What technology do mobile payments utilize?
Mobile phone technology for initiation and confirmation of payments.
p.6
Digital Financing Innovations
How has crowdfunding changed with digital platforms?
Digital platforms have lowered search and transaction costs, allowing more businesses to access crowdfunding and more individuals to become funders.
p.5
Digital Ecosystem Components and Characteristics
What role do technologies play in the Digital Finance Cube?
Technologies enable the business functions.
p.1
Digital Ecosystem Components and Characteristics
What does Part B of the module explain?
The components, characteristics, and function of a digital ecosystem.
p.11
Digital Financing Innovations
What advantages do FinTech companies have over traditional service providers?
More flexibility, efficiency, and innovation in their business models.
p.5
Impact of Emerging Technologies on Finance
What drives innovation in the digital finance landscape?
The relentless pursuit of competitive or transient advantage.
What is a key benefit of peer-to-peer (P2P) payment platforms?
They improve security by removing the need for users to share private banking information.
p.5
Digital Ecosystem Components and Characteristics
How does the Digital Finance Cube assist in analyzing digital finance?
It helps explore and analyze digital finance concepts through the interrelationships of its three key dimensions.
p.1
Digital Mindset and Skills for Finance Professionals
What do accounting and finance professionals need to understand in the context of digital finance innovations?
The current finance landscape and the opportunities and challenges associated with digital finance innovations.
p.1
Challenges in Digital Finance Adoption
What challenges are discussed in the context of digital transformation of finance?
The issues and challenges encountered during the digital transformation process.
p.11
Digital Ecosystem Components and Characteristics
What is the purpose of the Digital Finance Cube?
To provide a framework for considering the interaction of business functions, technologies, and service providers.
p.5
Impact of Emerging Technologies on Finance
What is a competitive advantage?
When a business achieves better performance than its competitors and defends that advantage over the long term.
p.1
Impact of Emerging Technologies on Finance
What is the significance of the 'Network Age' in finance?
It describes how technologies and innovations are impacting finance functions and institutions.
p.6
Digital Financing Innovations
How did the Patreon model support creatives during the COVID-19 shutdown?
Patreon uses a subscription model for ongoing financial support, which became popular when many artists could not perform publicly.
p.11
Role of FinTech in Digital Finance
What initial market did FinTech companies target?
Niche finance functions that were not well served by traditional providers.
p.11
Automation and Analytics in Finance
What does the Ten Types of Innovation framework help with?
Evaluating and enriching potential innovations and analyzing existing approaches.
p.5
Digital Ecosystem Components and Characteristics
What is the focus of the Digital Finance Cube from a business administration perspective?
The digital finance business function.
p.11
Challenges in Digital Finance Adoption
What challenges do FinTech companies face?
Strong market power of incumbents and a regulatory system designed around old business models.
p.11
Digital Mindset and Skills for Finance Professionals
What should be the focus when using the Ten Types framework?
A particular platform within the business rather than the entire organization.
