The document discusses several key trends and challenges facing the emerging fintech industry and business schools. It notes that fintech is growing rapidly and being shaped by new technologies like AI, blockchain, and IoT. Major challenges include navigating uncertainty from technological changes, implementing innovations while addressing regulations, and understanding local/global environments. Business schools must determine if they are adequately preparing students for careers in fintech through practical experience, industry-exposed faculty, and finance simulations. The fintech industry and business schools both face responsibilities in ensuring inclusive, sustainable and socially-relevant practices are promoted.

1. How to make strategies for the emerging fin-tech industry –
Challenges for the Business Schools

2. Introduction
• Fintech is the application of emerging and new frontier technologies to the financial world. If you’ve
cashed a check from your phone or sent money to a friend via Venmo, simply you’ve seen fintech in action.
Most of these types of applications build on existing technologies to make money and banking matters
easier, faster and accessible to the wider community.
• But some elements of fintech are starting to use cutting-edge technologies such as blockchain and artificial
intelligence (AI), Machine learning (ML), and very many new digital financial and banking products and
services which the traditional financial industry never heard or think about.
• Fintech—which can be powered by the most basic technologies such as the Internet and mobile apps, as
well as the very advanced ones like blockchain, AI, ML - has the potential to disrupt and revolutionize
financial services.
• The fintech industry is constantly evolving and improving and it is predicted that the fintech space will
multiply and reach $174 billion in 2023.
• The banking industry has recently experienced a massive surge in adopting fintech solutions as users are
becoming more tech-savvy. From embedded finance to SaaS services, there are several tech trends that will
shape the fintech industry in 2023 and beyond.
• Fintech will grow from $380.9 billion in 2022 to $439.15 billion in 2023, then increase to $502.39 in 2024
before a slight decline in 2025. In 2026, it reaches peaked at $645.45 billion and then dropped again until
2030 when it peaked at $813.19 billion!
• Virtual banking, open banking, peer-to-peer lending, and digital currencies are four such FinTech
innovations that have the potential to materially change the way traditional banking is conducted.

3. Trends/Responsibilities of Fin-tech Industry
 Bringing financial services to the unbanked and underbanked communities and regions. Ultimately, the goal of fintech is to make
financial services less expensive and more flexible per transaction and top of that speed. The greatest promise potentially lies in reaching
the so-called unbanked and underbanked.
• When it comes to the “tech” in fintech, we have to think broadly. For many, the first image that comes to mind when hearing the word
fintech is cryptocurrencies, or even AI-driven robo-advisors or chatbots. Yet, fintech is much more than that and expanding to different
technology directions.
• Successful innovation requires thinking beyond technology itself. It’s easy to get hung up on integrating the latest existing technologies.
In fact, most successful fintech products today aren’t built on cutting-edge technologies. Instead, they have discovered how to leverage and
amplify the advantages of existing technologies.
• And successful innovation requires substance, not show. The rapid pace of change in society today—be it social, technological, or
both—has created what appears to be an entrepreneur’s paradise, as demonstrated by the proliferation of many fintech startups posing
threats to existing banks. The next move tech companies such as Amazon and Google will enter this industry aggressively leaving
traditional bankers nowhere to move.
• The challenges ahead: implementation and regulation. The promise and excitement of new technologies like blockchain and AI are
huge, and it’s easy to get excited. But realism is important too. For the most part, fintech have thus far escaped the heavy hand of
regulation. In contrast, traditional banks, particularly those serving retail customers, face huge compliance regulations and “know-your-
customer” requirements. Therefore “reg-tech” is now important for this sector.
• New lessons. The fast-evolving fintech markets provide valuable lessons and insight not only to those who are thinking of working or
starting a company in this exciting and dynamic industry but also to those who are considering how to adopt technological change into their
business and business schools that provide manpower for this industry. Possibly financial engineering or tech and quantitative finance
combination degrees may be the demand at various levels in the fintech industry.
 Finance industry responsibility. The finance industry must understand local, regional, national, and international eco-environment and
their frequent changes with technological progress.
 The role of Business Schools. Are Business Schools capable in Teach the Craft of Getting Things Done in the finance industry in line with
tech development?
 Industry managers’ responsibility. How can managers navigate the uncertainty stemming from fintech, and make timely decisions to
adopt the right technologies to stay in business?

4. Another Important Trends in Fintech Industry
• The first trend that will undoubtedly shape fintech's future is AI and ML technologies. AI and ML can revolutionize banking, payments,
investments, risk management, and more. AI is a broad term used to describe machines with the ability to perceive their environment and
take actions that maximize their chance of success. ML is an application of AI that uses algorithms to learn from data and identify patterns
within it.
• In the fintech industry, embedded finance has been gaining traction recently and is poised to become the dominant trend in 2023. The term
"embedded finance" describes a broad category of financial services and products that may be used within a certain framework or platform.
Users can better manage their finances without switching between several apps or websites when these services are embedded inside an
existing app or platform.
• SaaS (software as a service) is another hot trend to watch out for in 2023. It is said that the SaaS sector is advancing in the right direction
and will hit the $623 billion milestone in 2023 at a compound annual growth rate of 18%. With SaaS services, companies can access and pay
for software applications hosted in the cloud without installing them on their servers or computers.
• Open banking is a financial technology that allows customers to securely share their financial information with third parties, offering them
more control and flexibility over their finances. It offers convenience for customers and opportunities for businesses to access new markets,
create innovative products and services and increase efficiency through data exchange.
• IoT enables physical devices connected to the internet to collect data, analyze it and then act on it without human intervention. The
implications for fintech are vast as IoT has made banking more secure, efficient and convenient. Banks can use sensors embedded into their
products to monitor customer activities and automate responses based on preset preferences or behaviors—such as fraud detection
algorithms or automatic payments triggered by changes in customer spending patterns.
• As technology continues to evolve rapidly, blockchain is one of the most exciting trends in fintech. Blockchain is a digital ledger that
records and verifies different types of transactions. It allows individuals, organizations and machines to securely transfer digital assets
without relying on any central authority or third-party intermediary. This decentralization means blockchain technology can be used for
various financial applications, such as payments, transfers and trading.
• Fintech will continue to be a driving force of the future in the finance industry. By 2023-2024, we can expect greater use of blockchain, AI,
ML and IoT in financial transactions.
• Automation and integration will grow more sophisticated. As a result, consumers will have access to more tailored services that better suit
their individual needs. As technological innovation continues to shape finance, companies must stay ahead of the curve or risk being left
behind.

5. Major challenges and opportunities for the fintech industry in the digital era
Data growing
in volume and
complexity
4
Cyber threats and data
privacy compliance/
Emerging regulatory
frameworks
Difficulty predicting
the future amidst
constant change
Doing more
with less
Knowing who
to partner with
and how
Interdisciplinary
data for fintech
research
“Free information”/
open science/
open sources/data
Availability of
frontier and
emerging new
technologies
Globalization &
regionalization
Spotting
emerging
fintech
research trends

6. Technological change and inequality through the ages
Due to technological progress, especially in the ICT era, inequality is widening
between developed and developing countries’ in fintech industry.

7. Fintech industry must know the importance of emerging and new frontier technologies
• The “frontier technologies” are a group of new technologies that take advantage of digitalization and connectivity
which enable them to combine to multiply their impacts.
• Such famous 11 technologies are artificial intelligence (AI) with Machine Learning (ML), the Internet of things
(IoT), big data, blockchain, 5G, 3D Printing, robotics, drones, gene editing, nanotechnology, and solar
photovoltaic (Solar PV).
All these frontier technologies will create an immense impact on management and business education around the
world.
USA, China, and
European
countries are
leading this
technology
development and
its usage for the
finance industry.
Countries in the
Indian sub-
continent where?

8. Possibility of using frontier technologies in Finance industry
According to
UNCTAD’s latest tech
reports, all these
indicators (Pub/Pate)
of new technologies
more than doubled
during the last four
years.
Furthermore, it
further widens the
technology gap
between developed
and emerging
economies.
In larger countries,
inside the country
this gap is obvious.
The fin-tech industry
is no exception to this
reality of the
widening gap.

9. The finance industry must know the life cycle of innovation
Discover
Uncover potential
opportunities of
all stakeholders in
the industry.
Discover
Protect
Take the right risks
with IPR. Protect
Commercialize
Bring stronger brands to
market with
appropriate affordable
technologies.
Commercialize
9

10. Analytics matter for the
finance industry in the
digital era. Industry and
Business Schools must
understand future
depends on data-driven
decisions taken via
machines. Research
journeys throughout the
research lifecycle must be
measurable.
Plan a
strategy
1
0
Obtain
funding
Conduct
research
Publish
findings
Assess
results
Promote
output
Finance Research
planning and
discovery
solutions
Finance Research
evaluation and
commercialization
solutions
Make sure to keep available
connected data and solutions for
researchers, librarians, and
university leaders in your school
with respect to finance industry.

11. Indian data on Finance/Fintech related degree programs
India has over 6000 business schools and possibly less than 10% are public and all other are private. But
to serve a billion + population, a vacuum exists to start many new (good IIMs) Business Schools.
BUT
• Only 19 business schools from India are AACSB accredited which offers internationally recognized
finance-related degrees.
• Only 09 business schools are both AACSB and EMBA accredited which offers internationally
recognized full fledge finance-related degrees.
• Only 02 business schools (IIM Calcutta and IIM Indore) are AACSB, EMBA, and EFMD accredited;
triple-accredited is the best place to learn fintech.
• I guess all Indian business schools dream one day to be with IITs, IIMS, and ISB standards.
• The best two business schools in India are IIM Bangalore and Ahmadabad (?).I guess they are very
strong in the fintech area.
• What is the application rejection rate (another indicator of quality?) at IIMs? Is it 99.98%?
• The critical question is, can all the best Indian finance brains captured by the IIMs be likewise all the
best Indian technical brains captured by the Indian IITs?
• But in many countries for local students and possibly faculty, ranking or accreditation may not that
much matter but for foreigners, it is a matter of concern. Possibly a matter of academic maturity?

12. Can Business Schools Teach the Craft of Getting Things Done in fin tech
industry?
• No one doubts business schools are experts at teaching finance theory. But what about
teaching real-world finance basics with tech flavors? In short, can students be taught
the execution part of finance with techs in the practical world?
• How do you create a manager who can manage, expand and start new fintech
businesses? Is it teaching pedagogy cases, coaching, local and international exposures,
industry-experienced teachers, and finally many finance simulations software, etc?
• There is no substitute for experience therefore class can be substituted with older and
more seasoned finance veterans (volunteers, retired CEOs, etc.) into the classroom as
mentors and coaches using semester project modules requiring implementing strategic
concepts important to the class material.
• Are business schools overemphasizing research at the expense of practical experience
in the classroom? Are they preparing graduates in useful ways for careers in the
fintech industry?
• Still many established business schools welcome Ph.D./DBA candidates for the
faculty positions with high-end publications rather than fintech industry experience
(?).

13. Transformation in-line with changing eco-environment is badly need to survive for
all Business Schools
• Many people find comfort in the durability of the universities from the 15th century.
Especially in public sector setups.
• Out of the sixty-six institutions from the fifteenth century that still exist today,
sixty-two are universities.
• But that durability may provide false security without non-adaptation to changing
eco-environment and technology progress in the industry.
• The business school’s journey into the turbulent waters of the knowledge age will
be difficult.
• Business schools that specialize in finance in the developing/emerging parts of the
world may suffer more badly with this technology divide to move to the high-end
fintech industry.
• Especially in international ranking and accreditation games also Business schools
in the developing/emerging parts of the world may suffer more badly because unable
to satisfy the required indicators and complexity of these exercises with unaffordable
costs.

14. Concluding remarks – FinTech posed challenges ahead for business schools.
• Climate change and the responsibilities of the business schools.
• Business ethics and the responsibilities of the business schools.
• Increasing an unequal income distribution and the role of business schools.
• Readiness for international rankings and accreditation of degree programs by business schools.
• The real impact of business schools on overall stakeholders in society.
• How can we create happiness in our business schools and link it to productivity?
• How can we find a solution to students' lack of soft skills to work in the fintech industry?
• How can we give students more fintech industry-oriented practical experience?
• How can we create fintech industry-exposed world-class business schools?
• How can we recruit and retain Ph.D./DBA-holding faculty members from the world’s best Universities? At
least from good ranking and accredited places for finance-related training.
• To make businesses sustainable and socially relevant, business school graduates have to demonstrate
competence, leadership, character, and empathy for the needy and tech-savvy mind setups.
• How can we create an inclusive sense of belonging for everybody in the classroom?
• How can we be ready for the hybrid delivery era?
• How can we promote relevant finance industry research in business schools by getting sponsorships from the
fintech industry?
• How can our schools at least be closer to the world-class business schools in developed countries?

15. Final Note
• When dealing with the timely adoption of uncertain technology for the finance industry, managers need
to be careful not to simply look at the economic costs and benefits of adopting that technology. They need
to make sure adoption is compatible with the needs, motives, and expectations of all stakeholders.
• Fintech will not disrupt the financial industry overnight, but when it does, it will reflect a larger and
more complex social debate than its inherent technological or economic merits. See new trends in USA
and Sweden in big cities no cash or no ATM machines and everything in cards based on the internet or
mobiles.
• Fintech may create value for consumers with its cheaper and more convenient financial solutions, but
banks may face the risk of over 40% of their revenues being threatened by new small startups with fin-
tech quick banking solutions. In turn, regulators may be busy finding the right frameworks and
supervisory mechanisms to regulate the booming fintech industry.
• The financial regulators shall make necessary changes to the regulatory framework to ensure that the
regulatory environment facilitates FinTech innovations appropriately, while risks posed by such
innovations are adequately monitored and mitigated.
• FinTech enabling regulatory framework shall need to be continuously evolving to reflect the changes
introduced by the rapidly developing FinTech industry. On the other hand, the supervisory capacity of
banking supervisors needs to be significantly enhanced by moving to more technology-based and
automated supervisory methodologies such as implementing modern supervisory information systems,
developing advanced data analytic capabilities, and introducing artificial intelligence assisted supervisory
technology (SupTech) tools.

16. Top Rated FinTech Products

17. Conceptual Framework for Fintech: Interactions between Markets, Policy, and Development
World Bank (2022) World Bank Group Global Market Survey: Digital Technology and the Future of Finance, Washington
DC 20433

18. A Guiding Framework for Fintech Activity
World Bank (2022) Fintech and the Future of Finance - Overview Paper, Washington DC 20433