p.24
Historical Development of Financial Technology
What significant event in online trading occurred in 1982?
E-Trade became the first online broker.
p.42
Introduction to Fintech Landscape
What characterizes the NEW Finance?
Financial technology (FinTech).
p.23
Historical Development of Financial Technology
What is the Nasdaq?
A stock exchange that was established in 1971.
p.54
Key Markets and Applications of Fintech
What is Ant Credit Pay?
A buy now, pay later service formerly known as Ant Check Later.
p.68
Fintech Ecosystem in China
What does HKMA stand for?
Hong Kong Monetary Authority.
p.41
Fintech Ecosystem in China
What is the total market capitalization of Tencent in China?
Total market capitalization is measured in 000 million yuan.
p.25
Disruption in Finance Education
What significant event occurred in 1987 related to the stock market?
The 'Black Monday' crash.
p.59
Fintech Ecosystem in China
What is Tencent known for?
Being a major social network and big data company.
p.82
Key Markets and Applications of Fintech
What is a financial market?
A market institution for people to trade financial assets, involving financial intermediaries, infrastructure, and regulations.
p.26
Historical Development of Financial Technology
What significant event in online banking occurred in 1995?
Wells Fargo offered the first online banking account.
p.37
Key Markets and Applications of Fintech
What is the largest company in Asia?
As of my last knowledge update, the largest company in Asia is Saudi Aramco.
p.62
Challenges and Opportunities in Fintech
What is a significant challenge in the financial sector?
Financial fraud and stability.
p.63
Challenges and Opportunities in Fintech
What is one opportunity for inclusive finance?
Online to offline services, such as food stalls and family groceries.
p.67
Key Markets and Applications of Fintech
What does the HKU FinTech Index Series aim to measure?
The development and progress of fintech in Hong Kong.
p.14
Introduction to Fintech Landscape
What is the primary purpose of FinTech?
To improve activities in finance using technology.
p.50
Key Markets and Applications of Fintech
What is the 11.11 Global Shopping Festival?
A major online shopping event that takes place on November 11th each year.
p.33
Key Markets and Applications of Fintech
What role does corporate participation play in venture capital activity in fintech?
Corporate venture capital (CVC) provides funding and strategic support to fintech startups.
p.101
Investment Process and Financial Markets
What is passive management in portfolio management?
An approach that involves no securities selection and market timing, holding a well-diversified portfolio.
p.63
Challenges and Opportunities in Fintech
Which industries are targeted for opportunities in inclusive finance?
Industries such as farming.
p.84
Investment Process and Financial Markets
What does the allocation of risk in financial markets allow investors to do?
Select securities consistent with their tastes for risk.
p.57
Fintech Ecosystem in China
How does WeBank operate?
WeBank operates without physical branches, providing services primarily through digital platforms.
What is security selection?
Selecting specific securities within each asset class.
p.95
Role of Financial Intermediaries
What is maturity intermediation?
The process of transforming short-term liabilities into long-term assets.
How does asset valuation relate to security selection?
Asset valuation plays a role in security analysis to value securities and determine investment attractiveness.
p.74
Investment Process and Financial Markets
Who are the key players in financial markets?
Investors and security issuers.
p.34
Investment Process and Financial Markets
What does corporate venture capital (CVC) involve?
The investment of corporate funds directly in external startup companies.
p.40
Fintech Ecosystem in China
Who are Tencent's main competitors in China?
The four largest state-owned banks.
p.36
Key Markets and Applications of Fintech
What was the largest company in Asia by market capitalization at the end of 2017?
The specific company name is not provided in the text.
p.82
Key Markets and Applications of Fintech
What happens in the primary market?
Securities are issued for the first time.
p.99
Investment Process and Financial Markets
What is the first step in the top-down approach to portfolio construction?
Set asset allocation first.
p.83
Investment Process and Financial Markets
How do securities help in consumption timing?
They allow individuals to store wealth and transfer consumption to the future.
p.71
Course Overview and Instructor Background
What might be included in a review of basic financial knowledge?
Topics such as budgeting, saving, investing, and understanding financial statements.
p.83
Investment Process and Financial Markets
What is the allocation of risk in financial markets?
Investors can select securities that match their risk preferences, benefiting firms raising capital.
p.5
Course Overview and Instructor Background
What will the instructor avoid in their teaching practices?
Any conflict of interest.
p.89
Investment Process and Financial Markets
What is direct financing?
A financial market system where households and firms interact without financial intermediaries.
p.73
Investment Process and Financial Markets
What do you sacrifice when making an investment?
Something of value now, expecting to benefit from that sacrifice later.
p.80
Key Markets and Applications of Fintech
What are alternative investments?
Investments that fall outside traditional asset classes like stocks and bonds.
p.30
Disruption in Finance Education
How is technology impacting finance jobs?
By automating tasks and changing the skill sets required.
p.35
Disruption in Finance Education
How is technology impacting finance jobs?
By automating tasks and changing the skill sets required.
p.8
Disruption in Finance Education
What does David Yermack predict about banks and stock exchanges in the next 10 years?
They may dissolve or take on a new form.
p.19
Challenges and Opportunities in Fintech
What market segments can fintech reach more effectively?
Segments that would otherwise be impractical or uneconomic to engage.
p.84
Investment Process and Financial Markets
What question might investors consider regarding their investments?
What is your risk appetite?
p.80
Key Markets and Applications of Fintech
What are hedge funds?
Investment funds that employ various strategies to earn active returns for their investors.
p.16
Key Markets and Applications of Fintech
What is peer-to-peer lending?
Borrowing money from online lending platforms like Lending Club and Ant Financial.
p.61
Challenges and Opportunities in Fintech
What are the potential penalties for violating GDPR?
Up to 20 million euros or 4% of global revenue.
p.77
Role of Financial Intermediaries
What basic relationship does FA represent in the financial market?
A basic lending relation.
p.49
Key Markets and Applications of Fintech
What was the Gross Merchandise Volume (GMV) on Alibaba’s China retail marketplaces in 2017?
RMB 3,767 billion (US$547 billion).
p.6
Course Overview and Instructor Background
What activity is planned for student interaction?
Student introduction and group formation.
p.40
Fintech Ecosystem in China
What is a key metric for comparing Tencent and banks?
Total market capitalization.
p.9
Course Overview and Instructor Background
Who is Garth Saloner?
Former Dean of the Stanford Business School.
p.82
Key Markets and Applications of Fintech
What occurs in the secondary market?
Investors trade securities among themselves.
p.97
Key Markets and Applications of Fintech
What is securitization?
The process of converting assets into securities, such as Asset-Backed Securities (ABS), Mortgage-Backed Securities (MBS), and Collateralized Debt Obligations (CDO).
p.33
Key Markets and Applications of Fintech
What is the focus of venture capital activity in fintech in the Americas?
Investment in financial technology startups.
p.31
Rising Public Interest in Fintech
What does the term 'fintech' refer to?
Financial technology that improves and automates the delivery of financial services.
p.11
Course Overview and Instructor Background
What are students expected to do in this course?
Learn new concepts on-the-fly and integrate concepts across different areas.
p.32
Key Markets and Applications of Fintech
What was a significant trend in fintech deals in 2020?
The emergence of large-scale investments and mergers.
p.7
Rising Public Interest in Fintech
What role does investor attention play in fintech?
It reflects the growing interest and potential in the fintech sector.
p.89
Investment Process and Financial Markets
What types of securities are involved in direct financing?
Primary securities, including equity and debt.
p.57
Fintech Ecosystem in China
What role does Tencent play in WeBank?
Tencent provides technological support and integration with its ecosystem for WeBank.
p.30
Disruption in Finance Education
What skills are becoming more important in the disrupted finance job market?
Data analysis, technology proficiency, and adaptability.
p.35
Disruption in Finance Education
What skills are becoming more important in the disrupted finance job market?
Data analysis, technology proficiency, and adaptability.
p.89
Investment Process and Financial Markets
How does direct financing affect cash flow management?
It may lead to inefficiencies in cash flow management due to the absence of intermediaries.
p.16
Key Markets and Applications of Fintech
What type of finance is focused on small and medium enterprises?
Business finance, specifically supply chain finance.
p.29
Disruption in Finance Education
What is the contrast highlighted between Silicon Valley and Wall Street?
The shrinking of traditional banks in the face of fintech innovation.
p.12
Historical Development of Financial Technology
What fundamental concepts are discussed in relation to Fintech?
Fundamental theories and methods related to Fintech.
p.61
Challenges and Opportunities in Fintech
What was Amazon's revenue in 2017 and its potential penalty under GDPR?
Amazon's revenue was $178 billion, leading to a potential penalty of $7 billion.
p.65
Rising Public Interest in Fintech
What is the current trend in the fintech industry?
It is a growing industry.
p.48
Key Markets and Applications of Fintech
What trend has been observed in e-commerce transaction volume?
It has increased dramatically over the years.
p.5
Course Overview and Instructor Background
What is the nature of this presentation?
It is expressly educational.
p.96
Role of Financial Intermediaries
What is the role of brokers in the secondary market?
They facilitate trades on behalf of clients on a commission basis.
p.97
Key Markets and Applications of Fintech
What are Credit Default Swaps (CDS)?
Financial derivatives that allow an investor to 'swap' or transfer the credit risk of a borrower.
p.83
Investment Process and Financial Markets
What question can help determine an investor's risk appetite?
What is your risk appetite?
p.78
Investment Process and Financial Markets
What is a Household Financial Asset (FA)?
It refers to the financial resources owned by a household, such as cash, investments, and property.
p.69
Key Markets and Applications of Fintech
What is the purpose of the Data Studio in Hong Kong?
To support fintech development.
p.31
Rising Public Interest in Fintech
What can be inferred from the top fintech deals of 2019?
There was significant investment and interest in fintech solutions.
p.19
Challenges and Opportunities in Fintech
What is a benefit of creating economies of scale in fintech?
Taking advantage of cost efficiencies.
p.61
Challenges and Opportunities in Fintech
What is one of the main legal challenges in the context of data protection?
The General Data Protection Regulation (GDPR) in the EU.
p.101
Investment Process and Financial Markets
Is performance evaluation necessary in passive management?
No, there is no need for performance evaluation.
p.13
Key Markets and Applications of Fintech
What are some common applications of Fintech?
Mobile payments, online lending, and robo-advisors.
p.96
Role of Financial Intermediaries
How do dealers earn their income?
By earning the bid-ask spread.
p.87
Role of Financial Intermediaries
What role do governments play in the financial market?
They can be both borrowers or lenders.
p.87
Role of Financial Intermediaries
Can you name some examples of financial intermediaries?
Investment companies, banks, insurance companies, credit unions, etc.
p.74
Investment Process and Financial Markets
What is the efficient market hypothesis?
The theory that asset prices reflect all available information.
p.15
Introduction to Fintech Landscape
Which technologies are used in FinTech for data analysis and decision-making?
Big data, AI (artificial intelligence), and Deep learning.
p.15
Introduction to Fintech Landscape
What does Automated CRM stand for in the context of FinTech?
Automated Customer Relationship Management.
p.22
Historical Development of Financial Technology
What technology was introduced in 1967 that transformed banking?
Automated Teller Machines (ATMs).
p.48
Fintech Ecosystem in China
What is the relationship between Alibaba and Ant Financial?
Ant Financial is an affiliate company of Alibaba.
p.59
Fintech Ecosystem in China
How does Tencent utilize big data?
To enhance its social networking services and financial products.
p.68
Fintech Ecosystem in China
Where can you find more information about Hong Kong's fintech landscape?
On the HKMA and InvestHK websites.
p.54
Key Markets and Applications of Fintech
What are the two main consumer lending products offered by Ant Financial?
Ant Credit Pay and Ant Cash Now.
p.53
Key Markets and Applications of Fintech
How do Alibaba and Ant Financial evaluate credit?
By applying big-data analytics for credit evaluation using a forward-looking credit model.
p.40
Fintech Ecosystem in China
What is the market capitalization of Tencent compared to state-owned banks?
It is measured in thousands of millions of yuan.
p.72
Investment Process and Financial Markets
What does corporate finance deal with?
How corporations address funding sources, capital structuring, accounting, and investment decisions.
p.18
Challenges and Opportunities in Fintech
How does trust play a role in fintech?
Through digital payments and blockchain smart contracts.
p.100
Investment Process and Financial Markets
What is the risk-return trade-off?
The principle that higher-risk assets are expected to yield higher returns.
p.85
Role of Financial Intermediaries
What is a potential threat that can help mitigate agency problems?
The threat of a takeover.
p.101
Investment Process and Financial Markets
What is the goal of passive management?
To reproduce or track a market index.
p.52
Fintech Ecosystem in China
What happened to the micro loan business in 2015?
It was injected into MYbank and repackaged to Ant Financial.
p.84
Investment Process and Financial Markets
How does the allocation of risk benefit firms?
It allows securities to be sold for the best possible price, helping firms raise capital.
p.18
Challenges and Opportunities in Fintech
How does asymmetric information relate to crowdfunding?
It can create challenges in assessing the viability of projects.
p.17
Key Markets and Applications of Fintech
What is robot advising in the context of FinTech?
Automated investment advice provided through algorithms.
p.95
Role of Financial Intermediaries
How do commercial banks perform financial intermediation?
By accepting short-term deposits and extending long-term loans or investing in long-term assets.
p.44
Fintech Ecosystem in China
How does the FinTech ecosystem in China differ from that in the US or Europe?
In China, internet giants drive innovations, while in the US or Europe, it's primarily startups and traditional banks.
p.92
Role of Financial Intermediaries
Can you name some examples of financial intermediaries?
Investment banks, commercial banks, mutual funds, insurance companies.
p.95
Role of Financial Intermediaries
What role do investment companies, like mutual funds, play in financial intermediation?
They pool small amounts of money from individual investors to invest in larger denomination securities.
p.61
Challenges and Opportunities in Fintech
What was Microsoft's revenue in 2017 and the potential penalty under GDPR?
Microsoft's revenue was $90 billion, leading to a potential penalty of $3.6 billion.
p.68
Fintech Ecosystem in China
What is the purpose of the Fintech Facilitation Office (FFO)?
To support the development of fintech in Hong Kong.
p.88
Key Markets and Applications of Fintech
What is the primary function of financial markets?
To channel funds from parties with surplus funds to parties with a shortage of funds.
p.100
Investment Process and Financial Markets
What is the relationship between risk and expected returns in competitive markets?
Higher-risk assets are priced to offer higher expected returns than lower-risk assets.
p.70
Rising Public Interest in Fintech
Where can more information about fintech competitions be found?
In the attached file in Moodle.
p.18
Challenges and Opportunities in Fintech
What does unit processing cost refer to?
Transaction, processing, or service costs.
p.19
Challenges and Opportunities in Fintech
What does latency refer to in the context of fintech?
Post-trade clearing and settlement.
p.57
Fintech Ecosystem in China
What is Tencent known for?
Tencent is a major Chinese multinational conglomerate specializing in various internet-related services and products.
p.51
Fintech Ecosystem in China
What is the relationship between Alibaba and Ant Financial?
Ant Financial is an affiliate company of Alibaba, focusing on financial services.
p.85
Role of Financial Intermediaries
Who can monitor managers to help mitigate agency problems?
The board of directors, large outside investors, and security analysts.
p.30
Disruption in Finance Education
What factors are contributing to the disruption of finance jobs?
Technological advancements and changes in the financial landscape.
p.19
Challenges and Opportunities in Fintech
What are two key aspects of fintech that enhance efficiency?
Automation and customization.
p.58
Fintech Ecosystem in China
What advantage does WeBank leverage for evaluating credit risk?
Big Data advantages, using troves of user information.
p.43
Rising Public Interest in Fintech
What is FinTech?
Financial technology that improves and automates the delivery of financial services.
p.44
Fintech Ecosystem in China
Who are the main drivers of FinTech innovations in China?
Internet giants like Baidu, Alibaba, and Tencent (BAT).
p.56
Fintech Ecosystem in China
What is Licaitong?
A wealth management platform launched by Tencent in 2014.
p.12
Introduction to Fintech Landscape
What does the course provide a comprehensive introduction to?
The whole picture of the Fintech industry.
p.89
Investment Process and Financial Markets
What is a potential problem of direct financing?
Lack of information and trust between households and firms.
p.47
Key Markets and Applications of Fintech
What are the wholesale platforms of Alibaba?
Alibaba.com and 1688.com.
p.57
Fintech Ecosystem in China
What is a key feature of WeBank's services?
WeBank offers a range of financial products, including loans and savings accounts, primarily through mobile apps.
p.80
Key Markets and Applications of Fintech
What type of asset is real estate classified as?
An alternative investment.
p.44
Fintech Ecosystem in China
What is a key feature of the FinTech ecosystem in China?
The development of a comprehensive FinTech ecosystem led by major internet companies.
p.74
Challenges and Opportunities in Fintech
What is an example of financial innovation?
Securitization, CDS (Credit Default Swaps), etc.
p.101
Investment Process and Financial Markets
Why is active management considered useless in an efficient market?
Because prices reflect all available information, making it difficult to achieve excess returns.
p.20
Challenges and Opportunities in Fintech
What market segments can fintech reach?
Segments that would otherwise be impractical or uneconomic to engage.
p.68
Fintech Ecosystem in China
What are HKMA’s Fintech Initiatives aimed at?
Promoting and facilitating fintech development in Hong Kong.
p.82
Key Markets and Applications of Fintech
What are the two types of markets where trading can take place?
Primary markets and secondary markets.
p.67
Key Markets and Applications of Fintech
What is the HKU FinTech Index Series?
A series of indices that track the development of fintech in Hong Kong.
p.18
Challenges and Opportunities in Fintech
What is one of the main goals in financial technology?
Reduce cost and frictions.
p.58
Fintech Ecosystem in China
What is WeBank?
A joint venture bank led by Tencent, established in 2014.
p.72
Key Markets and Applications of Fintech
What does asset pricing explore?
The factors that determine the prices of and returns on financial and real assets.
p.58
Fintech Ecosystem in China
What distinguishes WeBank in the banking sector in China?
It is the first online-only bank in China.
p.56
Fintech Ecosystem in China
What are some key features of Tencent?
Social network and instant communication software like QQ and WeChat.
p.63
Challenges and Opportunities in Fintech
What type of business planning is emphasized in the context of inclusive finance?
Comprehensive business planning, not just financial solutions.
p.84
Investment Process and Financial Markets
How do securities help in consumption timing?
They allow individuals to store wealth and transfer consumption to the future.
p.33
Key Markets and Applications of Fintech
How does corporate venture capital (CVC) benefit fintech startups?
By offering not just funding but also industry expertise and resources.
p.78
Investment Process and Financial Markets
What is a Financial Liability (FL)?
It refers to the financial obligations or debts that a household owes to others.
p.92
Role of Financial Intermediaries
What is the process called when funds are channeled to borrowers through financial intermediaries?
Financial intermediation (indirect financing).
p.94
Role of Financial Intermediaries
What is the primary function of financial intermediation?
To transform assets by raising funds from savers and lending them to borrowers.
p.50
Key Markets and Applications of Fintech
How does the 11.11 Global Shopping Festival impact the fintech industry?
It drives innovations in online payment systems and digital transactions.
p.86
Corporate Governance and Corporate Ethics
What is the role of auditors in firms?
Auditors act as watchdogs of the firms.
p.75
Key Markets and Applications of Fintech
What is an asset?
Something that can generate economic value to its owner.
p.43
Key Markets and Applications of Fintech
What role do mobile applications play in FinTech adoption?
They facilitate easy access to financial services and improve user engagement.
p.87
Role of Financial Intermediaries
What are financial intermediaries?
Entities that pool and invest funds.
p.16
Key Markets and Applications of Fintech
What is consumer finance in the context of FinTech?
Financial services aimed at individual consumers.
p.74
Investment Process and Financial Markets
What are portfolio theories used for?
To guide investment decisions and portfolio construction.
p.90
Investment Process and Financial Markets
How does liquidity affect the desirability of primary securities?
If securities are not liquid, savers may find them less desirable.
p.74
Investment Process and Financial Markets
What are portfolio construction approaches?
Methods used to build and manage investment portfolios.
p.90
Investment Process and Financial Markets
Why is denomination a concern for savers in direct financing?
Savers may prefer different denominations than those issued by borrowers.
p.6
Course Overview and Instructor Background
What is the next item on the agenda after announcements?
Going through the syllabus.
p.54
Key Markets and Applications of Fintech
What is Ant Cash Now?
A short-term unsecured cash loan product.
p.11
Course Overview and Instructor Background
What type of field does this course cover?
An emerging, large, complex, and changing field.
p.72
Introduction to Fintech Landscape
What is finance?
The management of money, including borrowing and investing.
p.19
Challenges and Opportunities in Fintech
What is one of the main goals in financial technology?
Reduce cost and frictions.
p.88
Key Markets and Applications of Fintech
What do borrowers do in financial markets?
Issue financial assets and sell them to investors to receive funds for buying real assets.
p.85
Role of Financial Intermediaries
What is one mechanism to mitigate agency problems?
Tying managers' income to the success of the firm, such as through stock options.
p.84
Investment Process and Financial Markets
What is the informational role of financial markets?
Capital flows to companies with the best prospects.
p.78
Investment Process and Financial Markets
What does it mean when Household Financial Asset (FA) is greater than Financial Liability (FL)?
It indicates that the household has more assets than debts, allowing them to lend out money.
p.69
Key Markets and Applications of Fintech
What is the role of Science Park in Hong Kong's fintech development?
It has a strategic focus on fintech.
p.57
Fintech Ecosystem in China
What is WeBank?
WeBank is China's first digital-only bank, established by Tencent.
p.52
Fintech Ecosystem in China
What significant change occurred to Alipay in 2014?
It was rebranded as Ant Financial.
What is market timing in investment?
Short-term deviations from strategic asset allocation to bet on expected movements in the financial market.
p.96
Role of Financial Intermediaries
What are dealers also known as?
Market makers or liquidity providers.
p.91
Role of Financial Intermediaries
What is indirect financing in financial markets?
A method where financial intermediaries facilitate the flow of funds from households to firms.
p.96
Role of Financial Intermediaries
How do dealers provide liquidity services?
By trading on their own account.
p.20
Challenges and Opportunities in Fintech
What is one of the main goals in financial technology?
Reduce cost and frictions.
p.30
Disruption in Finance Education
What is a potential outcome of the disruption in finance jobs?
A shift in job roles and the emergence of new positions.
p.74
Role of Financial Intermediaries
What role do financial intermediaries play?
They facilitate transactions between investors and issuers.
p.32
Key Markets and Applications of Fintech
What was a common characteristic of the top fintech deals in 2020?
High valuations and significant funding rounds.
p.92
Role of Financial Intermediaries
Do corporations and governments sell all their financial assets to individual investors in the primary market?
No, they do not sell all or even most of their financial assets to individual investors.
p.8
Disruption in Finance Education
What skills does David Yermack emphasize as necessary for the future?
Fintech, coding, Python, big data, and analytics.
p.20
Challenges and Opportunities in Fintech
What are two key aspects of fintech that enhance efficiency?
Automation and customization.
p.79
Key Markets and Applications of Fintech
What is capital market debt?
Long term bonds that can be safe or risky.
p.15
Introduction to Fintech Landscape
What is a key function of FinTech in the payments sector?
Facilitating digital transactions.
p.79
Key Markets and Applications of Fintech
What is the primary use of derivatives?
To transfer or hedge risk.
p.41
Fintech Ecosystem in China
How does Tencent's market capitalization compare to the real estate sector in China?
The comparison involves analyzing total market capitalization figures in 000 million yuan.
p.53
Key Markets and Applications of Fintech
What information advantages does Alibaba and Ant Financial have in credit offering?
They track multidimensional digital footprints of merchants and consumers.
p.73
Investment Process and Financial Markets
What is an investment?
The current commitment of money or other resources in the expectation of reaping future benefits.
p.67
Key Markets and Applications of Fintech
Where can you find information about the HKU FinTech Index Series?
At the website https://www.fintechindex.hku.hk/
p.5
Course Overview and Instructor Background
Does the teaching content constitute investment advice?
No, it does not constitute investment advice.
p.53
Key Markets and Applications of Fintech
What is a notable outcome of Alibaba and Ant Financial's credit evaluation methods?
They maintain very low delinquency rates.
p.52
Fintech Ecosystem in China
What was the purpose of the micro loan companies opened by Alibaba from 2006 to 2010?
To provide business credit for its online merchants.
p.53
Key Markets and Applications of Fintech
What type of interest rates do Alibaba and Ant Financial offer?
Competitive interest rates.
p.72
Introduction to Fintech Landscape
What are the broad categories of finance?
Asset pricing and corporate finance.
p.5
Course Overview and Instructor Background
Is this presentation an offer or solicitation for investment products?
No, it does not constitute an offer or solicitation.
p.13
Key Markets and Applications of Fintech
What is a key characteristic of Fintech?
It integrates technology into offerings by financial services companies.
p.35
Disruption in Finance Education
What factors are contributing to the disruption of finance jobs?
Technological advancements and changes in the financial landscape.
p.95
Role of Financial Intermediaries
What are the three major functions of financial intermediation?
Maturity intermediation, denomination intermediation, and risk intermediation.
p.13
Disruption in Finance Education
How has Fintech impacted traditional banking?
By providing alternative financial services and enhancing customer experience.
p.80
Key Markets and Applications of Fintech
What is private equity?
Investment in private companies or buyouts of public companies.
p.50
Key Markets and Applications of Fintech
Which companies typically participate in the 11.11 Global Shopping Festival?
Various e-commerce platforms and retailers, including Alibaba.
p.90
Investment Process and Financial Markets
What issue may arise with the 'primary securities' issued by borrowers?
They may not be desirable for savers.
p.101
Investment Process and Financial Markets
What are the two approaches used in active management?
Fundamental versus technical approach.
p.91
Role of Financial Intermediaries
What is an asset transformer?
A financial intermediary that converts short-term liabilities into long-term assets.
p.55
Challenges and Opportunities in Fintech
How did Ant Financial's micro credit services perform in terms of profitability?
They are very profitable.
p.55
Key Markets and Applications of Fintech
In 2017 Q1-Q3, how did Ant Financial's micro credit services compare to listed Chinese banks?
They beat 7 listed Chinese banks.
p.93
Role of Financial Intermediaries
How do financial intermediaries reduce costs for savers?
By reducing search costs and monitoring costs.
p.71
Course Overview and Instructor Background
What is the primary focus of a review of basic financial knowledge?
To refresh and solidify foundational concepts in finance.
p.85
Role of Financial Intermediaries
What is a key issue that arises from the separation of ownership and management in firms?
Agency problems, where managers pursue their own interests instead of maximizing the firm's value.
p.31
Rising Public Interest in Fintech
What was a significant trend in fintech in 2019?
Global top 10 fintech deals.
What characterizes fully efficient markets?
Prices quickly adjust to all relevant information.
p.11
Course Overview and Instructor Background
Will the course cover everything in the field?
No, it will not be able to cover everything.
p.7
Rising Public Interest in Fintech
What has contributed to rising public interest in fintech?
Google trends and investor attention.
What does asset allocation involve?
Setting the strategic asset allocation and allocating among major asset classes based on criteria.
p.88
Key Markets and Applications of Fintech
What do savers do in financial markets?
Buy financial assets and give out funds from income surpluses.
p.97
Key Markets and Applications of Fintech
What are the types of securities involved in securitization?
Asset-Backed Securities (ABS), Mortgage-Backed Securities (MBS), and Collateralized Debt Obligations (CDO).
p.29
Challenges and Opportunities in Fintech
What is the potential risk to bank revenues by 2025 according to McKinsey?
10-40% of bank revenues could be at risk.
p.16
Key Markets and Applications of Fintech
What are examples of e-wallets used for making payments?
PayPal, Apple Pay, Samsung Pay, Alipay, WeChat Pay.
p.2
Course Overview and Instructor Background
What is the first topic covered in the course outline?
Introduction to the course.
p.92
Role of Financial Intermediaries
What role do financial intermediaries play in the financial market?
They assist in bringing lenders and borrowers (or buyers and sellers) together.
p.91
Investment Process and Financial Markets
What are primary securities?
Equity and debt instruments issued directly by firms.
p.47
Key Markets and Applications of Fintech
What are the retail platforms of Alibaba?
Taobao Marketplace (C2C) and T-Mall (B2C).
p.47
Rising Public Interest in Fintech
What is the significance of Alibaba in the global market?
It is a major player in the global e-commerce ecosystem.
p.86
Corporate Governance and Corporate Ethics
What are some consequences of the Sarbanes-Oxley Act?
It introduced personal liability and independent structures.
p.79
Key Markets and Applications of Fintech
How are payments determined in fixed income securities?
Fixed or determined by a formula.
p.79
Key Markets and Applications of Fintech
What characterizes money market debt?
Short term, highly marketable, usually low credit risk.
p.64
Key Markets and Applications of Fintech
What is Alibaba primarily known for?
E-commerce and online retail, particularly in Asia.
p.93
Role of Financial Intermediaries
What do financial intermediaries charge for their services?
They charge a fee for facilitating the matching process.
p.9
Challenges and Opportunities in Fintech
What advice did Garth Saloner give to MBA students in 2016?
He advised them to go to the Engineering school and learn about AI, deep learning, and automation.
p.83
Investment Process and Financial Markets
What is the informational role of financial markets?
Capital flows to companies with the best prospects.
p.1
Course Overview and Instructor Background
What is Dr. Sibo Liu's position?
Associate Professor of Finance.
p.99
Investment Process and Financial Markets
In the top-down approach, what follows after setting asset allocation?
Security selection, but it is not a must.
p.73
Investment Process and Financial Markets
What does taking a course represent in terms of investment?
It is a commitment of resources with the expectation of future benefits.
p.35
Disruption in Finance Education
What is happening to finance jobs?
They are being disrupted.
p.31
Rising Public Interest in Fintech
Why are fintech deals important?
They indicate investment trends and the growth of financial technology.
p.7
Rising Public Interest in Fintech
How can Google trends be used in relation to fintech?
To gauge public interest and awareness.
p.11
Course Overview and Instructor Background
How is the learning experience described in this course?
Challenging and rewarding.
p.50
Key Markets and Applications of Fintech
What is the significance of the 11.11 Global Shopping Festival?
It is one of the largest online shopping events in the world, generating massive sales.
p.29
Challenges and Opportunities in Fintech
What market share loss could full-service banks face by 2020 according to Accenture?
About 35% of their market share.
p.90
Investment Process and Financial Markets
What are the high costs associated with direct financing?
High search cost and monitoring cost.
p.32
Key Markets and Applications of Fintech
What type of companies were involved in the top fintech deals of 2020?
Companies offering innovative financial services and technologies.
p.94
Role of Financial Intermediaries
How do financial intermediaries raise funds from savers?
By issuing financial assets (secondary securities) to them.
p.60
Key Markets and Applications of Fintech
How did WeBank's net profit growth in 2017 compare to listed banks?
WeBank's growth was significantly higher at 261.1% compared to 4.7% for listed banks.
p.89
Investment Process and Financial Markets
What risks are associated with direct financing?
Higher risks for both households and firms due to lack of diversification and professional management.
p.90
Investment Process and Financial Markets
What are some factors that make primary securities undesirable for savers?
Maturity, liquidity, risk, and denomination.
p.32
Rising Public Interest in Fintech
What impact did the COVID-19 pandemic have on fintech deals in 2020?
Accelerated digital transformation and increased investment in fintech.
p.90
Investment Process and Financial Markets
What is one challenge related to the maturity of securities in direct financing?
Savers may prefer different maturities than those offered by borrowers.
p.20
Challenges and Opportunities in Fintech
How can fintech create advantages in the market?
By creating and taking advantage of economies of scale.
p.75
Key Markets and Applications of Fintech
What are financial assets (FA)?
Claims to the income generated by real assets.
p.86
Corporate Governance and Corporate Ethics
What is the significance of analyst scandals?
They highlight conflicts of interest in financial reporting.
p.4
Course Overview and Instructor Background
What are Dr. Sibo Liu's research interests?
Financial Economics, Financial Technology, Political Economy.
p.71
Course Overview and Instructor Background
Why is basic financial knowledge important?
It serves as the foundation for understanding more complex financial concepts.
What does the no-free-lunch rule imply in efficient markets?
In fully efficient markets, there should be neither underpriced nor overpriced securities.
p.73
Investment Process and Financial Markets
What is an example of an investment?
Purchasing shares of stock.
What is a portfolio in the context of investments?
A collection of investment assets.
p.30
Disruption in Finance Education
What is happening to finance jobs?
They are being disrupted.
p.99
Investment Process and Financial Markets
What is the primary focus of the bottom-up approach in portfolio construction?
Security selection first.
p.14
Key Markets and Applications of Fintech
How has FinTech influenced the financial services industry?
It has significantly influenced business development.
p.96
Role of Financial Intermediaries
Do brokers trade with their clients?
No, they do not trade with their clients.
p.44
Fintech Ecosystem in China
What drives FinTech in the US or Europe?
Startups and a few traditional players in the financial sector, such as banks.
p.14
Challenges and Opportunities in Fintech
In what way is FinTech evolving?
Into an ecosystem embedded in people's everyday life scenarios.
p.18
Challenges and Opportunities in Fintech
What is asymmetric information in the context of lending?
A situation where one party has more or better information than the other.
p.74
Investment Process and Financial Markets
What are the main types of financial assets?
Equity, fixed-income securities, derivatives, etc.
p.43
Rising Public Interest in Fintech
What factors contribute to the adoption of FinTech?
Technological advancements, changing consumer preferences, and regulatory support.
p.29
Challenges and Opportunities in Fintech
What is Deutsche Bank's plan regarding digitization and workforce reduction by 2020?
To digitize 80% of banking tasks and shred 9,600 employees.
p.77
Role of Financial Intermediaries
What does FA specify between issuers and investors?
A contractual relation for dividing the income generated by real assets.
p.101
Investment Process and Financial Markets
What characterizes active management in portfolio management?
Involves securities selection or market timing.
p.17
Key Markets and Applications of Fintech
What is a key market related to insurance in FinTech?
Purchasing insurance plans.
p.91
Role of Financial Intermediaries
What role do financial intermediaries play in brokerage?
They facilitate transactions between buyers and sellers in financial markets.
p.94
Role of Financial Intermediaries
What do financial intermediaries do with the funds raised from savers?
They lend the funds to borrowers by investing in the financial assets (primary securities) that borrowers issue.
p.95
Role of Financial Intermediaries
What is a special-purpose vehicle (SPV) in the context of financial intermediation?
An entity that issues mortgage-backed securities with multiple tranches of different risk exposure.
p.94
Role of Financial Intermediaries
What advantages do financial intermediaries offer to savers compared to direct borrower-issued securities?
Safer, more liquid, smaller denominations, and proper maturity.
p.43
Challenges and Opportunities in Fintech
What are some challenges to FinTech adoption?
Regulatory hurdles, cybersecurity concerns, and lack of consumer trust.
p.75
Key Markets and Applications of Fintech
Can real assets be intangible?
Yes, but they generally have to be durable.
Which scandal involved the company HealthSouth?
HealthSouth is an example of an accounting scandal.
p.75
Key Markets and Applications of Fintech
What is the purpose of financial assets?
To allocate the economic benefits/real income generated by real assets.
p.79
Key Markets and Applications of Fintech
What do equities represent?
Ownership in a corporation.
p.93
Role of Financial Intermediaries
What type of trading is involved in the brokerage function of financial intermediaries?
No trading is involved; they facilitate matching between issuers and investors.
p.15
Introduction to Fintech Landscape
What are some other areas encompassed by FinTech?
Numerous other areas including investment, banking, and personal finance.
p.51
Rising Public Interest in Fintech
What trend is observed in e-commerce transaction volume related to Alibaba?
It increases dramatically.
p.43
Disruption in Finance Education
How does FinTech impact traditional financial services?
By providing innovative solutions that enhance efficiency and customer experience.
p.13
Challenges and Opportunities in Fintech
What role does data play in Fintech?
Data analytics is used to improve decision-making and customer service.
p.20
Challenges and Opportunities in Fintech
What does latency refer to in the context of fintech?
Post-trade clearing and settlement.
p.80
Key Markets and Applications of Fintech
What are commodities?
Basic goods used in commerce that are interchangeable with other goods of the same type.
p.43
Rising Public Interest in Fintech
What demographic is most likely to adopt FinTech solutions?
Younger generations, particularly millennials and Gen Z.
p.80
Key Markets and Applications of Fintech
What are some examples of other financial assets?
Structured products, foreign exchange, antiques, red wines, etc.
p.79
Key Markets and Applications of Fintech
What are fixed income securities?
Notes, bonds, T-bills, etc.
p.12
Challenges and Opportunities in Fintech
What type of approaches are highlighted in the course?
State-of-the-art approaches.
p.64
Key Markets and Applications of Fintech
What is Amazon's primary business model?
E-commerce, cloud computing, and digital streaming.
p.15
Introduction to Fintech Landscape
What do lending platforms in FinTech provide?
Access to loans through online platforms.
What major accounting scandal involved the company Enron?
Enron is a notable example of an accounting scandal.
p.75
Key Markets and Applications of Fintech
What are real assets (RA)?
Productive resources of an economy that can be used to produce goods and services.
p.75
Key Markets and Applications of Fintech
Which of the following are considered real assets? labor, land, capital, software?
All of them: labor, land, capital, and software.
p.2
Key Markets and Applications of Fintech
What is the last topic mentioned in the course outline?
A review of basic financial knowledge.
p.91
Role of Financial Intermediaries
What is the relationship between households and firms in indirect financing?
Households provide funds to firms through financial intermediaries.
p.15
Introduction to Fintech Landscape
What is Robo-advising?
Automated investment advice provided by algorithms.
p.4
Course Overview and Instructor Background
Where did Dr. Sibo Liu earn his Ph.D.?
The University of Hong Kong (HKU).
p.91
Investment Process and Financial Markets
What are secondary securities?
Instruments like deposits, mutual fund units, and insurance policies that derive value from primary securities.
p.94
Role of Financial Intermediaries
How do financial intermediaries reduce costs for savers and borrowers?
By reducing search costs and monitoring costs.
p.90
Investment Process and Financial Markets
What role does risk play in the desirability of primary securities?
Higher risk may deter savers from investing in those securities.
What was a significant scandal involving Arthur Andersen?
Arthur Andersen was implicated in the Enron scandal.
p.4
Course Overview and Instructor Background
In which areas has Dr. Sibo Liu published?
Leading business journals.
p.64
Key Markets and Applications of Fintech
Which company has a larger cloud computing division?
Amazon, through Amazon Web Services (AWS).
p.94
Role of Financial Intermediaries
What expertise do financial intermediaries provide?
Expertise in risk management and due diligence.
p.79
Key Markets and Applications of Fintech
What are derivatives?
Financial instruments like futures and options whose value derives from other securities.
p.39
Key Markets and Applications of Fintech
Which company is the sixth largest in the US?
Meta Platforms, Inc. (Facebook).
p.93
Role of Financial Intermediaries
What is the primary role of financial intermediaries in financial intermediation?
They stand between securities issuers and ultimate fund investors.
p.64
Key Markets and Applications of Fintech
What is a significant difference in the business approach of Alibaba and Amazon?
Alibaba focuses on connecting buyers and sellers, while Amazon sells products directly.
p.93
Role of Financial Intermediaries
What services do stock brokers like Merrill Lynch provide?
They provide investment research and execute trading for their clients.
p.86
Corporate Governance and Corporate Ethics
What is a common theme among the scandals of Enron, Rite Aid, and HealthSouth?
They all involve corporate governance failures.
p.79
Key Markets and Applications of Fintech
How are payments to stockholders determined?
Not fixed; they depend on the success of the firm.
p.4
Course Overview and Instructor Background
What is Dr. Sibo Liu's academic title?
Associate Professor of Finance.
p.15
Introduction to Fintech Landscape
What technology is used for cash management in FinTech?
Technology for cash management.
p.4
Course Overview and Instructor Background
What types of collaborations has Dr. Sibo Liu engaged in?
With government agencies and internet companies.
p.93
Role of Financial Intermediaries
What services do credit rating agencies and equity research departments offer?
They provide analytic services.
p.93
Role of Financial Intermediaries
What is the role of investment banks in the context of IPOs?
They underwrite shares on a best effort basis.
p.93
Role of Financial Intermediaries
What do stock exchanges provide?
They provide trading facilities.
