FinTech (The Revolution in Financial Systems)

This meticulously crafted on-campus program for senior business executives offers a comprehensive understanding of the technological innovations driving the revolution in financial systems. We are currently witnessing an exhilarating phase in the FinTech revolution, with India emerging as a key player.

The country's approach, encompassing public infrastructure such as UPI and ONDC, alongside global incumbents' private infrastructure, sets it apart. Information and Communications Technology (ICT) is pivotal in today’s financial systems, underscoring the necessity to grasp its fundamental technologies within FinTech. Each advancement in ICT is scrutinized by FinTech professionals for potential enhancements to business operations.

The rapid pace of ICT innovations increasingly challenges the comprehensive assessment of technology's positive versus negative impacts, necessitating a principled approach. This program uniquely equips participants to grasp the core principles of integrating technology into financial processes and instruments.

This foundational knowledge empowers participants to discern and confidently determine the type and scope of technology suitable for integration in their environments, alongside learning risk identification and mitigation strategies.

Pedagogy:

This executive-friendly course will incorporate relevant use cases, some of which will be collaboratively re-worked by the cohort. This approach aims to enhance the cohort's decision-making abilities and provide insights into the rationale behind selecting specific decisions among various options.

In FinTech, it is crucial to grasp not only the advantages and disadvantages of technological choices but also to navigate regulatory and business constraints that shape operations. Participants will actively engage in designing a FinTech workflow, showcasing their comprehensive understanding of the modules covered in this course.

Objectives:

• The financial sector is a primary beneficiary of technological innovations. The rapid advancements in technologies such as blockchain, DLTs, AI/ML, and big data analytics have left everyone grappling to comprehend their integration into financial services.
• For business leaders, it is essential to identify the relevant technology stack that can either streamline business operations and compliance or drive revenue growth.
• This course aims to achieve two main objectives: first, to gain a deep understanding of the technology landscape; and second, to apply these insights to real-world use cases within their respective organizations.
• In the realm of FinTech, it is critical not only to grasp the underlying technologies but also to assess the inherent risks associated with their integration. This knowledge equips decision-makers to make informed choices during the design and implementation phases, effectively mitigating and managing technological risks.
• Participants will delve into the pivotal stages of our modern financial system's evolution and explore the technological breakthroughs that have driven these advancements. This foundational understanding is crucial for navigating existing FinTech offerings and developing successful FinTech applications.
• The course will also analyze recent prominent case studies, elucidating the intricate interplay between technology, finance, and regulatory frameworks. By synthesizing the benefits and drawbacks of current state-of-the-art technologies, this course aims to stimulate informed discussions on the future of the financial system.
• Measurable outcomes: Upon successful completion of this course, participants will:
• Gain a comprehensive understanding of the FinTech ecosystem, encompassing various payment systems.
• Explore the IndiaStack ecosystem and its interfaces to leverage in building their own FinTech applications.
• Acquire insights into regulatory and compliance challenges within the FinTech space, along with strategies to effectively address them.
• Develop the ability to outline the workflow of a typical FinTech application

Coverage:

• Learning Objective A: Gain a comprehensive understanding of key technologies in FinTech. Explore the opportunities and challenges introduced by modern-day data platforms.
• Module 1: Introduction to FinTech
• Overview of the FinTech Landscape
• Exploration of Key Technologies
• Analysis of Key Challenges & Opportunities
• Module 2: Era of Platform Ecosystems
• Differentiation between Public and Private Data Platforms
• Utility of Data Platforms in Financial Services
• Economic Aspects: Privacy as a Currency, User Perceptions, and Controls
• Learning Objective B: Understand the fundamental component of financial systems - the payment system and its operational characteristics. Study payment systems in two distinct forms: 1) Payments via interconnected private rails (Visa, MasterCard, RTGS, SWIFT, etc.), and 2) Payments on DPI (Digital Public Infrastructure like IndiaStack).
• Module 3: Payment Rails
• Core Components of Financial Systems and Functional Requirements of Payment Systems
• Expansion of Financial Services through Neobanks, NBFCs, and Secondary Markets
• Open Banking API (PLAID Use Case)
• Examination of Global Payment Innovations
• Case Study: M-PESA
• Module 4: IndiaStack DPI
• Identity Layer: Aadhaar and eKYC, CKYC
• Payment Layer: UPI and Related Payment Interfaces/Instruments
• Data Layer: Account Aggregators, OCEN, DigiLocker
• Case Study: Namma Yatri & ONDC
• Learning Objective C: Explore the inception of blockchain technology as a global payment rail and its regulatory challenges. Understand how these concepts are evolving as foundations for cross-border asset movement and emerging asset classes.
• Module 5: Digital Assets
• Digital Cash, Blockchains, DLTs, Cryptocurrencies
• DeFi, NFTs, CryptoETFs, Crypto Exchanges
• Programmable Money, CBDCs - Unlocking Potential
• Use Cases for Digital Assets
• Learning Objective D: Examine how AI/ML technologies assist financial service providers in extracting insights from vast data sets and automating business processes using actionable insights.
• Module 6: Analytics & Automation
• AI/ML-Driven User Insights for Operational Improvements
• Fraud Detection through Cross-Source Data Correlation
• RPA (Robotic Process Automation) using DLTs
• Case Study: Leading Bank's Customer Acquisition, Retention, and Service Delivery Experience
• Learning Objective E: Gain a clear understanding of Indian financial regulations, directives, and guidelines applicable to the FinTech sector.
• Module 7: Navigating FinTech Regulations
• Regulatory Concerns, RBI Master Direction on DPSC, EPT Directions, PPI/PAPG Guidelines
• Sector-Specific Licences for TSPs, Regulatory Sandbox & Self-Regulation (Sahamati), Operational Guidelines
• Taxation Issues, PDPA Compliance, DEPA, FIU-IND (FINnet, FINGate)
• AML/CFT (ARIFAC, FPAC)
• Case Study: Paytm Bank's Regulatory Compliance Challenges
• Learning Objective F: Study how global FinTech applications navigate regulatory compliance and apply classroom learning to design a hypothetical FinTech application.
• Module 8: Design Considerations in FinTech Applications
• Overview of Prominent Global FinTech Applications
• Tokenization, Interoperability Initiatives
• Group Assignment: Designing Process Flows for Hypothetical FinTech Applications (e.g., BNPL in E-commerce, Incentive-linked Insurance, Smart Energy with EV, Credit Facilities using UPI Plug-ins)
• Learning Objective G: Explore potential future directions of financial systems - envisioning a global payment rail operating seamlessly across jurisdictions and for various asset classes.
• Module 9: Finternet
• Futuristic Initiatives from the Bank of International Settlements (Working Paper on Finternet)
• Emerging Trends due to FinTech: AgTech, HealthTech
• Towards Unified Ledgers

Target Audience:

• Senior Business Executives
• This course is designed for professionals from an array of backgrounds including:
• This course is suitable for those in management and leadership roles responsible for making decisions about adopting financial technologies. 
• Business owners and entrepreneurs interested in starting a FinTech business will find this course highly beneficial.
• Additionally, the course will be helpful for financial regulators, policy-makers, VC/Private Equity Fund managers who seek a deeper understanding of the fintech landscape and the disruptive technologies reshaping it.