- WHAT IS FINANCIALTECHNOLOGY?(FINTECH) - Developments of Fintech - EXAMPLESOF FINTECH - WHAT IS BLOCKCHAIN?

1. FINANCIAL
TECHNOLOGY
(FINTECH)
EBU1063 Sem 2
22/23 (G01):
Smart Money
Management

2. Back to Agenda Page
WHAT IS FINANCIAL
TECHNOLOGY?
(FINTECH)
New technology that seeks to
improve and automate the
delivery and use of financial
services
Integration of technology into
offerings by financial services
companies to improve their
use and delivery to consumers

3. Developments of Fintech?
Fintech
1.0
Fintech
2.0
Fintech
3.0
Fintech
4.0
Relationship
between Finances
and Technology
began in 1866. First
use of non-human
teller, ATM.
A shift from analog
to digital began in
1967. This is the era
of virtual, online
banking and
services.
The current error
began in 2008. This
era birth alternate
forms of currency.
The next evolution
of financial
technology.

4. Back to Agenda Page
EXAMPLES
OF
FINTECH?

5. Blockchains
Cryptocurrency
Mobile Payments
Crowdfunding
Stock-trading Apps
Budgeting Apps

6. WHAT IS
BLOCKCHAIN
Blockchain is a shared, immutable ledger that facilitates the
process of recording transactions and tracking assets in a
business network
An asset can be tangible or intangible
Virtually anything of value can be tracked and traded on a
blockchain network, reducing risk and cutting costs for all
involved.
Blockchain is ideal for delivering that information because it
provides immediate, shared and completely transparent
information stored on an immutable ledger that can be
accessed only be permissioned network members.

8. DEVELOPMENTS OF BLOCKCHAIN
Blockchain development is the process of developing and
maintaining a blockchain platform.
This involves creating the infrasturcture that allows for the
creation and management of blockchain-based
applications and services, such as digital currencies, smart
contracts, and distributed applications.

9. Blockchain and Cryptocurrency
Blockchain fits the definition of fintech in its ability to change the
conventional approaches for delivering financial services.
Many organizations have used blockchain and cryptocurrencies to
achieve notable benefits such as improved traceability, security, and
transparency alongside faster transactions and lower costs.
The fintech examples in blockchain and cryptocurrencies would refer
to multiple platforms such as Bitcoin, Ethereum, Binance, Coinbase
and others.

10. What is Cryto Mining?
Cryptocurrency mining is a process of creating
new digital "coins".
The process of recovering these coins requires
solving complex puzzles, validating
cryptocurrency transactions on a blockchain
network and adding them to a distributed ledger
to locate them.

11. Blockchain 1.0: The Origin of the Modern Blockchain
Levels of Blockchain
This version of Bitcoin is essentially an electronic cash transfer
system that is automated and functions without the need for human
intervention between transactions as a trusted authority.
This system allows users to exchange currencies without the
intervention of a bank.

12. Blockchain 2.0: Smart Contracts
The next development in blockchain technology expanded
on the capabilities of the blockchain protocols.
In simple terms, smart contracts are a set of codes that are
automated when certain conditions are met
These contracts enable two users or organizations to do
more than just simple cryptocurrency transactions.

13. Blockchain 3.0: Decentralized Enterprise Level
Applications
Blockchain 3.0 has applications in a broader set of
industries outside the domain of finance and
economics.
The major concerns for this generation of blockchains
are sustainability, scalability, cost-effectiveness, more
decentralization and improved security.

14. In computing, a token is a piece of data that represents a particular entity or information. It
serves as a reference to access a resource or perform an action. Tokens can be used for
authentication, authorization, or as a form of currency.
For example, in a web application, a token can be used to authenticate a user. The user
provides their username and password to the server, and if the credentials are correct, the
server generates a token that represents the user's session. This token is sent back to the
user's browser and is used to authenticate subsequent requests.
In cryptocurrency, a token can represent a digital asset that is stored on a blockchain. These
tokens can be used as a form of currency or to represent ownership of a particular asset.
WHAT IS TOKEN?

15. Tokens are used extensively in computer systems and networks to manage access and
permissions. They are also used in payment systems, loyalty programs, and other applications
where a digital representation of value is required.
In the context of computer security, tokens are commonly used for authentication and
authorization. For example, a user may be issued a hardware token (such as a smart card or USB
key) that contains a unique identifier. When the user attempts to access a system, they insert the
token into a reader, which sends the identifier to the system. The system then checks the
identifier against a list of authorized users and grants or denies access accordingly.
In the world of cryptocurrency, tokens are used to represent assets that are stored on a
blockchain. These tokens can be traded and exchanged like traditional currency, and can also be
used to represent ownership of a particular asset or investment. There are many different types
of tokens with different functions and properties, such as utility tokens, security tokens, and
stablecoins.
Overall, tokens are a powerful tool for managing digital resources and providing secure, efficient
access to information and services.

16. Both are
methods of
fundraising
money/capital.
But they have
some
fundamental
differences.
Initial Coin Offering (ICO) Initial Public Offering (IPO)
Definition A fundraising method in which a company
creates and sells its own cryptocurrency or
tokens to investors.
A process of offering shares of a private
company to the public for the first time.
Ownership Ability to buy and sell the company token
to make profit. No stake in the company.
Investor get voting rights and ownership stake.
Investor Base Generally open to anyone. Typically open to institutional investors,
mutual funds, and individual investors who
meet certain requirements.
Regulation Not as heavily regulated as IPO Strictly regulated under national law.
Companies to to meet certain requirements.
Financial
Reporting
Do not have the same reporting obligations.
Transparency can vary from one country to
another.
Publicly traded companies are required to
provide regular financial reporting and
disclosures to regulators and shareholders.
Disclosed audit financial.
Cost Low, better fit for young startup High, for company that are mature and have a
stable business model.
Risk Higher risk, can turn out to be fraudulent. Lower risk, as IPOs are often issued by
established companies with track records.
HOW
ICO
DIFFER
FROM
IPO?

17. NEW ECONOMY AND OLD ECONOMY

18. OLD ECONOMY
The old economy refers to the
traditional economic system before
technology and globalization became
widespread. It involved industries and
practices from the past that relied on
physical resources, manual labor, and
established ways of doing business.

19. NEW ECONOMY
The new economy is the current
economic era shaped by fast
technological progress, digital
changes, and global connections. It is
driven by technology, innovation, and
industries that rely on knowledge and
information.

21. OLD
ECONOMY
NEW
ECONOMY
Digital
Transformation
OLD & NEW
ECONOMY
Physical
Infrastructure
Limited
Technological
Integration
Manufacturing
and Industrial
Focus
Localized
Markets
Knowledge and
Information-Based
Industries
Global
Connectivity
Innovation and
Disruption Flexible and
Knowledge-Based
Jobs

22. OLD ECONOMY NEW ECONOMY
Technological
orientation
Traditional manufacturing, agriculture,
and resource-based industries.
Information technology and digitalization.
Innovation and
disruption
Typically more resistant to change and
innovation, relying on established
practices and industries that have been
around for decades.
Thrives on innovation and disruption. Companies
in the new economy focus on constant adaptation
and embracing change.
Globalization
and connectivity
localized operations and faced greater
barriers to entry in international
markets.
Highly interconnected and globalized due internet
and digital technologies.
Job market and
skill
requirements
Manual labor and had a greater
concentration of jobs in manufacturing
and agriculture.
Knowledge-based work, creativity, and
technological expertise. Eg. Software
development, data analysis, digital marketing, and
online content creation.
Economic
growth drivers
Fueled by factors such as natural
resources, physical capital investments,
and labor-intensive production processes.
The new economy is seen as a driver of economic
growth and productivity. It has the potential to
create high-value jobs, increase efficiency through
automation, and drive innovation

23. HOW FINTECH
CAN AFFECT
ECONOMY AND
COUNTRY?

24. ECONOMIC
GROWTH
For example, the FinTech industry's growth in Malaysia has been
rapid, making it one of the most developed in Southeast Asia.
The government has supported this growth through funding and
creating a favorable business environment.
This support has encouraged innovation and entrepreneurship,
leading to increased economic activity and job creation.

25. EMPLOYMENT
OPPORTUNITIES
Fintech companies require professionals with expertise in
technology, software development, data analytics, cybersecurity,
and other relevant fields.
The demand for professionals with finance and technology skills is
particularly high.
Fintech companies hire skilled individuals to develop, maintain, and
support their platforms and services.

26. For example, Malaysia has introduced regulatory frameworks and
amendments to support the growth of the FinTech industry.
These regulatory developments enable effective monitoring,
regulation, financial stability, and consumer protection.
Adapting regulations keeps pace with technological advancements
and ensures industry growth and stability.
REGULATORY
DEVELOPMENT

27. REGIONAL
COMPETITIVENESS
For example, the growth of Malaysia's FinTech industry positions the
country as a major player in the regional scene.
Malaysia's FinTech market has emerged as a vibrant and robust
industry in Southeast Asia.
The country's digitalization and support from the government,
regulators, and industry players create opportunities for Malaysia to
become a leading FinTech market in the region.

28. For example, FinTech developments in Malaysia contribute to the
country's economic growth.
Online payments and transactions facilitated by FinTech make
financial activities easier.
FinTech companies generate revenue and pay taxes, contributing to
the country's GDP.
INCREASE GDP

29. FinTech industry enhances a country's international reputation and
attracts investment.
For example, Malaysia's FinTech industry is recognized as an
emerging hub in Asia, attracting investors.
Investment influx contributes to economic growth, job creation, and
technological advancement.
INTERNATIONAL REPUTATIONAL
AND INVESTMENT

30. THANK
YOU!