David Kuo Chuen Lee - Foundations For Fintech

Global FintechInstitute - World Scientific Series on Fintech

Print ISSN: 2737-5897

Online ISSN: 2737-5900

Series Editors:David LEE Kuo Chuen (Global Fintech Institute, Singapore & Singapore University of Social Sciences, Singapore)
Joseph LIM (Singapore University of Social Sciences, Singapore)
PHOON Kok Fai (Singapore University of Social Sciences, Singapore)
WANG Yu (Singapore University of Social Sciences, Singapore)

In the digital era, emerging technologies such as artificial intelligence, big data, and blockchain have revolutionized peoples daily lives and brought many opportunities and challenges to industries. With the increasing demand for talents in the fintech realm, this book series serves as a good guide for practitioners who are seeking to understand the basics of fintech and the applications of different technologies. This book series starts with fundamental knowledge in finance, technology, quantitative methods, and financial innovation to lay the foundation for the fundamentals of fintech, and understanding the trending issues related to fintech such as regulation, applications, and global trends. It is a good starting point to the fintech literature and is especially useful for people who aspire to become fintech professionals.

Published:

Vol. 1Foundations for Fintech
edited by David LEE Kuo Chuen, Joseph LIM, PHOON Kok Fai and WANG Yu

Forthcoming:

Finance for Fintech Professionals

David Lee Kuo Chuen (Global Fintech Institute, Singapore & Singapore University of Social Sciences, Singapore), Joseph Lim, Phoon Kok Fai and Wang Yu (Singapore University of Social Sciences, Singapore)

Fintech for Finance Professionals

David Lee Kuo Chuen (Global Fintech Institute, Singapore & Singapore University of Social Sciences, Singapore), Joseph Lim, Phoon Kok Fai and Wang Yu (Singapore University of Social Sciences, Singapore)

Applications and Trends in Fintech I: Governance, AI, and Blockchain Design Thinking

David Lee Kuo Chuen (Global Fintech Institute, Singapore & Singapore University of Social Sciences, Singapore), Joseph Lim, Phoon Kok Fai and Wang Yu (Singapore University of Social Sciences, Singapore)

Applications and Trends in Fintech II: Cloud Computing, Compliance, and Global Fintech Trends

David Lee Kuo Chuen (Global Fintech Institute, Singapore & Singapore University of Social Sciences, Singapore), Joseph Lim, Phoon Kok Fai and Wang Yu (Singapore University of Social Sciences, Singapore)

More information on this series can also be found at https://www.worldscientific.com/series/gfiwssf

Published by

World Scientific Publishing Co. Pte. Ltd.

5 Toh Tuck Link, Singapore 596224

USA office: 27 Warren Street, Suite 401-402, Hackensack, NJ 07601

UK office: 57 Shelton Street, Covent Garden, London WC2H 9HE

and

Global Fintech Institute Ltd.

80 Robinson Road, #08-01, Singapore 068898

Library of Congress Cataloging-in-Publication Data

Names: Lee, David (David Kuo Chuen) editor. | Lim, Joseph, editor. | Phoon, Kok Fai, editor. | Wang, Yu, editor.

Title: Foundations for fintech / editors, David Kuo Chuen Lee, Global Fintech Institute, Singapore Singapore University of Social Sciences, Singapore, Joseph Lim, Singapore University of Social Sciences, Singapore, Kok Fai Phoon, Singapore University of Social Sciences, Singapore, Yu Wang, Singapore University of Social Sciences, Singapore.

Description: Hackensack, NJ : World Scientific, [2022] | Series: Global fintech institute - world scientific series on fintech; vol 1 | Includes bibliographical references.

Identifiers: LCCN 2021038693 | ISBN 9789811238802 (hardcover) | ISBN 9789811239267 (paperback) | ISBN 9789811238819 (ebook) | ISBN 9789811238826 (ebook other)

Subjects: LCSH: Financial services industry--Information technology. | Banks and banking--Technological innovations. | Corporate governance--Moral and ethical aspects. | Artificial intelligence--Economic aspects. | Risk management.

Classification: LCC HG173 .F678 2022 | DDC 332.10285--dc23

LC record available at https://lccn.loc.gov/2021038693

British Library Cataloguing-in-Publication Data

A catalogue record for this book is available from the British Library.

Copyright 2022 by Global Fintech Institute

All rights reserved.

For any available supplementary material, please visit

https://www.worldscientific.com/worldscibooks/10.1142/12330#t=suppl

Desk Editors: Balasubramanian Shanmugam/Yulin Jiang

Typeset by Stallion Press

Email:

Printed in Singapore

The business and economic environment has been and is expected to undergo significant changes. Finance, which is both the head and heart of the flows supporting commerce, is at the forefront of such changes. And technology has enabled sea changes in how transactions are facilitated and expedited, and how financial intermediation is disrupted. Technology has further made funds available to the underserved and allocated those funds better as well as enhanced liquidity in many cases.

This interface between finance and technology requires a group of professionals who understand how finance and key technologies can be applied to facilitate financial services, and in some cases, even to disrupt traditional ways in which such services are provided. Fintech is not merely a combination of finance and technology. While digitalization is about creating new business models with digitization, fintech goes further to serve new customers with new products. To facilitate their learning journey, such professionals who straddle the finance and technology domains and occupy the intersection of both need a framework of important concepts and knowledge of both domains to understand how concepts can be put into practice. The GFI-World Scientific Series in Fintech aims to help the reader develop an understanding of fintech and its applications in an orderly fashion.

Every journey begins with the first step. We have identified key foundation knowledge underlying the science and art of fintech. In the foundation module we start in Part I with a discussion of ethics and governance where compliance with ethical principles and regulation is a necessary requirement for one to be a competent professional. Part I comprises two chapters.

Part II of the foundation module provides an understanding of the key concepts of statistical analysis and discuss them over four chapters: statistical distribution, sampling and estimation, hypothesis testing, and regression analysis.

Part III of the foundation module discusses rudiments of quantitative methods that facilitate understanding of computing and other data analysis applications. This is done over five chapters: Boolean algebra and logic gates, number system, modular arithmetic, matrix operation, and cluster analysis.

In the last two parts, key fundamentals of fintech are discussed at a very rudimentary level, where key definitions are provided, key concepts are explained, and key applications are discussed. This part introduces the basic concepts in the fundamental building blocks of fintech. Some very specific concepts in fintech that are not commonly found in finance are covered. These include the basic building blocks and ideas of decentralization, data privacy protection, peer-to-peer activities, network valuation methods, scalability, interoperability, and technical risk management. In particular, these subjects build the foundation for Level 1 subjects and to apply the concepts to actual cases in Level 2.