COURSE INFORMATION Course Title: FINANCIAL TECHNOLOGY

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
BAF 509	B	3	3	0	0	3	7.5

Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature)	Dr. Albina Hysaj ahysaj@epoka.edu.al
Main Course Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	Dr. Albina Hysaj ahysaj@epoka.edu.al , Tuesday 9:00-11:00
Second Course Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	NA
Language:	English
Compulsory/Elective:	Compulsory
Study program: (the study for which this course is offered)	Master of Science in Banking and Finance
Classroom and Meeting Time:	E-312/ Monday 18:00 AM
Teaching Assistant(s) and Office Hours:	NA
Code of Ethics:	Code of Ethics of EPOKA University Regulation of EPOKA University "On Student Discipline"
Attendance Requirement:	At least 75% required
Course Description:	Financial Technology course gives students the elements of Financial Technology. FinTech is moving financial service industry to a new level. Blockchain, cryptocurrencies (Bitcoin, Ethereum, Dogecoin, etc.), alternative lending techniques, machine learning, Artificial Intelligence, are some of the major topics discussed in this course. The course will develop a broad understanding of these FinTech developments and the impact they have had on the revolutionizing financial industry. This course will also give hands-on and problem-solving experiences that can be useful in FinTech applications and financial innovation.
Course Objectives:	This course aims to introduce students to the principles behind financial technology, the financial products, and the necessary technological infrastructure behind them. The main focus of the course will be on blockchain technology, cryptocurrencies, Bitcoin, Ethereum, and Altcoins, smart contracts, P2P lending, crowdfunding, machine learning, and robo-advising. Another aspect of the course is the political view of these developments and regulatory framework.

BASIC CONCEPTS OF THE COURSE

1	Online banking : The conduct of banking affairs via an internet browser or smartphone application. In many cases, this removes the need to attend bank branches.
2	Peer-to-peer (p2p) lender : A platform that connects savers with borrowers; by disintermediating banks, this should, in theory, secure both higher savings rates and lower borrowing rates.
3	Financial technology (fintech) : The application of technology to finance to make it faster, cheaper, more convenient and more accessible.
4	Cryptocurrency : A blockchain token used as a currency system (eg Bitcoin).
5	Artificial intelligence (AI) : The deployment of computer programs acting with some degree of autonomy so that they meet the Turing Test.
6	Big Data : Quantitative decision-making methodologies that involve large-scale data sets and extensive data management systems.
7	Digitally : Pertaining to activity that has a networked, and usually web-enabled, technological underpinning.
8	Network effect : The idea that a network becomes more useful and/or valuable to its participants as it increases in size (ie ‘connections’).
9	Private key : A unique password that confers access to a single public address on a blockchain.
10	Blockchain: a system in which a record of transactions, especially those made in a cryptocurrency, is maintained across computers that are linked in a peer-to-peer network.

COURSE OUTLINE

Week	Topics
1	Review of Syllabus: Introduction to the Course (This is an introductory lecture presenting students with the general rules, valuation methods, specific requirements, textbook and other learning materials, and the main chapters to be taught in this course).
2	Chapter 1. Networks, APIs and fintech banking platforms: How technology is decentralizing finance. (This chapter is focused on: Harnessing relationships 4, Open Banking 5, Feature: Application programming interfaces (APIs) 6, API-based business models in financial services 7, The economics of platform banking 9, Bank–fintech collaboration 11, Case study: Starling Bank 13, Networked financial services 15, Case study: Harnessing mobile networks for financial inclusion 17) .
3	Chapter 2. Disruption and disintermediation: How financial innovation and cloud computing gave birth to the fintech revolution. (This chapter is focused on: Financial disintermediation 28, Fintech and the financial crisis of 2007–09 29, Regulation as a driver of fintech? 32, Virtualizing IT infrastructure 33, Feature: Cloud computing explained 34, Banking as infrastructure 35, Banking as a Service (BaaS) 36, Disruptive innovation in financial services 37, Case study: TransferWise 39, Convenience as a business model 41, Case study: Wealth Wizards 42).
4	Chapter 3. Behavioural economics and experience design: How to optimize user engagement. (This chapter is focused on: User experience as a competitive advantage 52, The drivers of technology adoption 53, Feature: UI and UX design 54, The principles of user interface design 55, How users make decisions 58, Communities, social norms and culture 60, Engaging customers in the branch 63, Case study: Lloyds Bank 64, The ethics of nudging 65, Case study: Applied nudging 67).
5	Chapter 4. Artificial intelligence and automation in fintech: AI and machine learning in practice. ( This chapter is focused on: A definition of artificial intelligence 77, A brief history of artificial intelligence 78, Big Data vs artificial intelligence 80, Machine learning vs artificial intelligence 81, Feature: Machine learning explained 81, Decision trees and random forests 82, Bayesian classifiers 84, Case study: Bayesian classifiers and car insurance 85, Nearest neighbours 88, Genetic algorithms and genetic programming 90, Neural networks and deep learning 90, Practical and ethical issues regarding AI 92, Case study: Zopa 95).
6	Chapter 5. Bitcoin, blockchain and cryptocurrencies: The applications of distributed ledger technology in finance. (This chapter is focused on: The genesis of Bitcoin 105, A decentralized currency system 106, Bitcoin transactions in practice 108, Authenticating Bitcoin transactions 109, Feature: Hashing and its role in cryptography 110, How the Bitcoin network reconciles differences 112, How the Bitcoin network stays honest 113, Alternative reconciliation mechanisms 115, Why Bitcoin is useful as a cryptocurrency 116, From Bitcoin to blockchain 117, Smart contracts 117, Case study: Generali Group 119, Practical issues regarding blockchain and cryptocurrencies 121, Case study: Facebook and Libra 124).
7	Chapter 6. Digitizing the price mechanism: The impact of automation and social media on financial markets. (This chapter is focused on: Prices as a communication tool 134, Mean estimates 134, Liquidity in financial markets 135, Market efficiency and passive fund management 138, Sentiment mining with natural language processing 141, Feature: Natural language processing 142, Case study: Stocktwits 145, Prediction markets 147, Case study: Augur 152).
8	Review for Midterm Exam
9	Midterm Exam
10	Chapter 7. Financial crime, cybersecurity and risk management: Pitfalls and opportunities in fintech. (This chapter is focused on: Technology risk and opportunity 161, Why care about risk management and financial crime? 163, Security weaknesses in cloud systems 164, Combatting cybercrime with machine learning 166, Anonymization and data security 167, Feature: Securing customer data with tokenization 169, Risk management in a fintech context 170, Forward-looking risk management 172, Case study: RiskGenius 173, Risk management and culture in fintech 175, Case study: Robinhood 178).
11	Chapter 8. Regtech and regulatory compliance: Financial regulation in a fintech context. (This chapter is focused on: Regulation and the global financial crisis 188, Feature: Robotic process automation (RPA) 189, Regulatory risks in fintech business models 190, Fintech similarities to the pre-GFC years 192, Regtech and sandboxes 195, Case study: Digital Regulatory Reporting 196, Data protection in an AI context 198, A code of conduct for artificial intelligence 202, Regulating blockchains and cryptocurrencies 204, Anti-money laundering and cryptocurrencies 205, Cryptocurrencies, ICOs and securities regulation 207, Case study: Global stablecoins (GSCs) 210).
12	Chapter 9. Looking to the future: Optimization, decentralization and personalization. (This chapter is focused on: Optimization and integration 219, Real-time payments and a cashless society 220, Case study: Banking by voice with Alexa 223, The Internet of Things (IoT) 224, Identity and the digital self 226, Case study: ConsenSys’s uPort 228, Decentralized financial institutions? 230, The human touch: The edge in an automated economy 231, Feature: Affective computing 232).
13	Assignment Presentations
14	Assignment Presentations and Review for Final

Prerequisite(s):	NA
Textbook(s):	Financial Technology: Case studies in Fintech Innovation by Niels Pedersen, 2021, Kogan PAGE.
Additional Literature:	The FINTECH Book: The Financial Technology Handbook for Investors, Entrepreneurs and Visionaries, by Susanne Christi, Janos Barberis, 2016, Wiley. Bank 4.0: Banking Everywhere, Never at a Bank, by Brett King, 2018, Wiley.
Laboratory Work:	No
Computer Usage:	Yes
Others:	No

COURSE LEARNING OUTCOMES

1	The students will be able to define advanced concepts, theories, and analytical tools in Financial Technology
2	The students will be able to recognize the role of the regulatory framework and the functioning of the banking system, centralized and decentralized banking, international banking system, and the conduct of monetary policy.
3	The students will be able to identify FinTech impact on the financial services industries.
4	The students will be able to extend their skills and competencies to demonstrate professionalism in the banking and financial services industry or to move on to further study within the discipline.
5	The students will be able to solve the problems of daily life from a broader perspective with an increased awareness of the importance of moral/ethical considerations and professional integrity in the workplace.
6	The students will be able to analyze financial data related to cryptocurrencies and their underlying items such as blockchain.
7	The students will be able to infer their numerical and IT skills as well as knowledge of databases to conduct advanced analysis.
8	The students will be able to elaborate the use of smart contracts and decentralized applications in the banking and financial services industry.
9	The students will be able to construct advanced valuation models to estimate the price of different financial assets.
10	The students will be able to combine research and analysis by application of machine learning and FinTech both individually and as part of a team.

COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES (Blank : no contribution, 1: least contribution ... 5: highest contribution)

No	Program Competencies	Cont.
Master of Science in Banking and Finance Program
1	The students gain the ability to look at the problems of daily life from a broader perspective with an increased awareness of the importance of moral/ethical considerations and professional integrity in the workplace.	2
2	They develop a broader understanding of banking and finance including concepts, theories, and analytical tools that serve both in national and international markets.	4
3	They are able to apply advanced valuation models to estimate the price of different financial assets as well as evaluate multinational business firms.	2
4	They are able to apply different investment techniques and form portfolios that would generate higher returns by decreasing the unsystematic risk level.	2
5	They have advanced knowledge of the regulatory framework and functioning of the banking system, international banking, central banking and the conduct of monetary policy.	4
6	They are able to conduct advanced financial analysis and use the results in the decision-making process of business firms.	5
7	They are able to understand and use advanced economic theories and tools to solve economic problems in banking and financial services industry.	2
8	They have the ability to utilize accounting, financial and economic data as well as other information to solve complex and unstructured business problems by using advanced econometric and statistical models.	4
9	They develop their ability to think critically, do advanced and independent research, analyze, interpret results, draw conclusions, and communicate effectively, both individually and as part of a team.	3
10	They are provided with opportunities to acquire the necessary skills and competencies to move on to further study within the discipline.	4

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Midterm Exam(s)	1	30
Project	1	30
Final Exam	1	30
Attendance		10
	Total Percent:	100%

ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)

Activities	Quantity	Duration(Hours)	Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours)	16	3	48
Hours for off-the-classroom study (Pre-study, practice)	16	3	48
Mid-terms	1	30	30
Assignments	1	31.5	31.5
Final examination	1	30	30
Other			0
Total Work Load:			187.5
Total Work Load/25(h):			7.5
ECTS Credit of the Course:			7.5

CONCLUDING REMARKS BY THE COURSE LECTURER

Organizing open lectures with guest speakers from the industry or visiting fintech companies would be beneficial for this course.