Fintech 3 || Questions and 100% Accurate Answers.
3 key areas of innovation correct answers -Disruptive (linked to various business models)
-Incremental (helps stay competitive in short term)
-Radical (focused on long term impact)
Business transformation issues correct answers -How to recover profitably
-How to develop resilient business models
-How to become operationally efficient and reduce costs while being customer-centered
Technology has the potential to allow the market to correct answers -Remove distinction between goods & services
-Emphasis the organization component
-Mitigate the role of technology
-Pay attention to all the actors involved in production process
-Reallocate more attention to the analysis of competition
Digital transformation implies 4 main categories correct answers -Product innovation
-Process innovation
-Organization innovation
-Business model innovation
Stages in retail bank
Front office
Middle-office
Back-office correct answers Front office: direct link with customers
Not directly customer facing:
Middle-office: enable process by assessing e.g. credit risk
Back-office: enable process by recording & storing info
Rediscovering strategy correct answers Recognizing that a new paradigm exists, where industry evolution is influenced by the actions of consumers as well as consumer communities
(regards concept of co-creation)
Set of factors that act as enables to transformation correct answers -Innovative culture
-Organizational structure & flexibility
-Risk acceptance
-Capital and investments
Various cost reduction strategies of firms correct answers -Regular slim downs
-Multi-channelling
-Out-in and co-sourcing Downside of cost reduction (list 4) correct answers -Will eventually affect quality of products & services
-Will affect innovative strength
-Poorly motivated employees
-Decreasing capability to benefit from new market opportunities
Banks need to take a more consumer-focused perspective correct answers -Ask themselves questions from customer perspective
-Be transparent & fairer
-Work on new charging structures
Fintechs attract more ___ customers correct answers Price senstive
2 main dimensions to consider illustrating the digital transformation taking place among banks correct answers -Incremental changes vs disrupting changes
-Innovation areas of changes
To be a disruptive change correct answers Requires more substantial and consistent changes within the company starting from a cultural change
Scenario analysis correct answers Is a "what-if" analysis technique used to yield various projections for some outcome
-Allows business to respond to alternative situations more quickly & effectively
-Give a prospective picture of possible situations for industry to change
Evolutionary scenarios: bank lead correct answers -Gradual evolution scenarios: Market remains largely unchanged
-Banks domination scenarios: Existing players manage to protect their business model
-Banking reinvented scenarios: Several incumbent banks fail to adopt new technologies and will be overtaken
-Banks as utilities scenarios: "disintermediation", they begin to lose direct contact with customers
Evolutionary scenarios: finech lead correct answers -Big switch scenarios: Banks losing market share to other firms
-Banking ecosystem scenarios: Disruptive entrants gain significant market share
Evolutionary scenarios: finech & banks correct answers Waterbed scenarios: In these scenarios banks are losing transactional revenues or deposit and lending volumes, but increasing charges to
a smaller group of less engaged customers
Technical Note: Evolution of digital banks correct answers Main advantage of digital only banks (list 6 correct answers -Low costs
-Product innovation
3 key areas of innovation correct answers -Disruptive (linked to various business models)
-Incremental (helps stay competitive in short term)
-Radical (focused on long term impact)
Business transformation issues correct answers -How to recover profitably
-How to develop resilient business models
-How to become operationally efficient and reduce costs while being customer-centered
Technology has the potential to allow the market to correct answers -Remove distinction between goods & services
-Emphasis the organization component
-Mitigate the role of technology
-Pay attention to all the actors involved in production process
-Reallocate more attention to the analysis of competition
Digital transformation implies 4 main categories correct answers -Product innovation
-Process innovation
-Organization innovation
-Business model innovation
Stages in retail bank
Front office
Middle-office
Back-office correct answers Front office: direct link with customers
Not directly customer facing:
Middle-office: enable process by assessing e.g. credit risk
Back-office: enable process by recording & storing info
Rediscovering strategy correct answers Recognizing that a new paradigm exists, where industry evolution is influenced by the actions of consumers as well as consumer communities
(regards concept of co-creation)
Set of factors that act as enables to transformation correct answers -Innovative culture
-Organizational structure & flexibility
-Risk acceptance
-Capital and investments
Various cost reduction strategies of firms correct answers -Regular slim downs
-Multi-channelling
-Out-in and co-sourcing Downside of cost reduction (list 4) correct answers -Will eventually affect quality of products & services
-Will affect innovative strength
-Poorly motivated employees
-Decreasing capability to benefit from new market opportunities
Banks need to take a more consumer-focused perspective correct answers -Ask themselves questions from customer perspective
-Be transparent & fairer
-Work on new charging structures
Fintechs attract more ___ customers correct answers Price senstive
2 main dimensions to consider illustrating the digital transformation taking place among banks correct answers -Incremental changes vs disrupting changes
-Innovation areas of changes
To be a disruptive change correct answers Requires more substantial and consistent changes within the company starting from a cultural change
Scenario analysis correct answers Is a "what-if" analysis technique used to yield various projections for some outcome
-Allows business to respond to alternative situations more quickly & effectively
-Give a prospective picture of possible situations for industry to change
Evolutionary scenarios: bank lead correct answers -Gradual evolution scenarios: Market remains largely unchanged
-Banks domination scenarios: Existing players manage to protect their business model
-Banking reinvented scenarios: Several incumbent banks fail to adopt new technologies and will be overtaken
-Banks as utilities scenarios: "disintermediation", they begin to lose direct contact with customers
Evolutionary scenarios: finech lead correct answers -Big switch scenarios: Banks losing market share to other firms
-Banking ecosystem scenarios: Disruptive entrants gain significant market share
Evolutionary scenarios: finech & banks correct answers Waterbed scenarios: In these scenarios banks are losing transactional revenues or deposit and lending volumes, but increasing charges to
a smaller group of less engaged customers
Technical Note: Evolution of digital banks correct answers Main advantage of digital only banks (list 6 correct answers -Low costs
-Product innovation
