BUS 410 CH19 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
What was the total global fintech investment in 2025? - Answers $116 billion
What is the approximate global average adoption rate for fintech services? - Answers 64%
Which two countries have the highest fintech adoption rates at approximately 87%? - Answers China
and India
What is the most frequently used fintech service globally? - Answers Digital payments and money
transfers
How does the Financial Stability Board (FSB) define fintech? - Answers Technology-enabled
innovation in financial services that could result in new business models, applications, processes, or
products with an associated material effect on the provision of financial services.
What was the first electronic system to provide real-time stock quotes to brokers? - Answers
Quotron Systems' Quotron (1960)
Which 2008 whitepaper introduced blockchain-based digital currency? - Answers The Bitcoin
whitepaper by Satoshi Nakamoto
What are neobanks? - Answers Digital-only banks, such as Revolut and N26, which emerged between
2014 and 2016.
What is the purpose of PSD2? - Answers It enables open banking and third-party financial data
access.
What are the primary uses of AI in modern fintech? - Answers Fraud detection, algorithmic trading,
credit scoring, and personalized financial services.
How did the 2008 global financial crisis act as a supply factor for fintech? - Answers It weakened trust
in traditional banks and created opportunities for startups to enter lending, payments, and
investment services.
How did the low-interest-rate environment (2009-2021) influence financial institutions? - Answers It
pushed them to seek efficiency through digital technology.
What digital infrastructure advances reduced the cost of launching financial platforms? - Answers
Cloud computing, open APIs, and distributed systems.
What are the 'three big Cs' that give retail banks a competitive advantage? - Answers Customers,
compliance, and capital.
What are the primary advantages fintechs have over traditional banks? - Answers Lack of legacy IT
systems, agility, innovation mindset, consumer-centric perspective, and freedom from protecting
existing business models.
What is Banking-as-a-Service (BaaS)? - Answers An end-to-end process allowing third parties to
connect with banks' systems via APIs to build banking offerings on the bank's infrastructure.
What are the two main monetization strategies for BaaS? - Answers Charging clients a monthly fee
for platform access or charging a la carte for each service used.
What is open banking? - Answers A system that provides users with a network of financial institution
data using APIs, allowing third parties to build new apps and services.
What are mobile wallets? - Answers Apps on mobile devices that store payment information from
credit or debit cards, such as Apple Pay or Google Pay.
What are Peer-to-Peer (P2P) payments? - Answers Services that allow customers to pay friends and
family directly from their bank account or card via mobile phones, such as PayPal or Venmo.
How are digital currencies defined in the context of fintech? - Answers New payment systems
combined with currencies that are not issued by a central bank.
What is the significance of the 1971 NASDAQ establishment? - Answers It marked a major milestone
in the evolution of electronic financial systems.
What role do APIs play in the relationship between banks and fintechs? - Answers They allow for
secure data sharing and system integration, enabling partnerships and Banking-as-a-Service models.
What has been the focus of central banks between 2022 and 2023? - Answers Accelerating the
development of Central Bank Digital Currencies (CBDCs) and stronger regulation of cryptocurrency
markets.
What is the benefit of the fintech-bank partnership model? - Answers Fintechs leverage the bank's
reputation, while banks leverage the fintech's technology infrastructure.
What is cryptocurrency? - Answers A digital currency using encryption to regulate unit generation
and verify fund transfers, operating independently of a central bank.
What was the total global fintech investment in 2025? - Answers $116 billion
What is the approximate global average adoption rate for fintech services? - Answers 64%
Which two countries have the highest fintech adoption rates at approximately 87%? - Answers China
and India
What is the most frequently used fintech service globally? - Answers Digital payments and money
transfers
How does the Financial Stability Board (FSB) define fintech? - Answers Technology-enabled
innovation in financial services that could result in new business models, applications, processes, or
products with an associated material effect on the provision of financial services.
What was the first electronic system to provide real-time stock quotes to brokers? - Answers
Quotron Systems' Quotron (1960)
Which 2008 whitepaper introduced blockchain-based digital currency? - Answers The Bitcoin
whitepaper by Satoshi Nakamoto
What are neobanks? - Answers Digital-only banks, such as Revolut and N26, which emerged between
2014 and 2016.
What is the purpose of PSD2? - Answers It enables open banking and third-party financial data
access.
What are the primary uses of AI in modern fintech? - Answers Fraud detection, algorithmic trading,
credit scoring, and personalized financial services.
How did the 2008 global financial crisis act as a supply factor for fintech? - Answers It weakened trust
in traditional banks and created opportunities for startups to enter lending, payments, and
investment services.
How did the low-interest-rate environment (2009-2021) influence financial institutions? - Answers It
pushed them to seek efficiency through digital technology.
What digital infrastructure advances reduced the cost of launching financial platforms? - Answers
Cloud computing, open APIs, and distributed systems.
What are the 'three big Cs' that give retail banks a competitive advantage? - Answers Customers,
compliance, and capital.
What are the primary advantages fintechs have over traditional banks? - Answers Lack of legacy IT
systems, agility, innovation mindset, consumer-centric perspective, and freedom from protecting
existing business models.
What is Banking-as-a-Service (BaaS)? - Answers An end-to-end process allowing third parties to
connect with banks' systems via APIs to build banking offerings on the bank's infrastructure.
What are the two main monetization strategies for BaaS? - Answers Charging clients a monthly fee
for platform access or charging a la carte for each service used.
What is open banking? - Answers A system that provides users with a network of financial institution
data using APIs, allowing third parties to build new apps and services.
What are mobile wallets? - Answers Apps on mobile devices that store payment information from
credit or debit cards, such as Apple Pay or Google Pay.
What are Peer-to-Peer (P2P) payments? - Answers Services that allow customers to pay friends and
family directly from their bank account or card via mobile phones, such as PayPal or Venmo.
How are digital currencies defined in the context of fintech? - Answers New payment systems
combined with currencies that are not issued by a central bank.
What is the significance of the 1971 NASDAQ establishment? - Answers It marked a major milestone
in the evolution of electronic financial systems.
What role do APIs play in the relationship between banks and fintechs? - Answers They allow for
secure data sharing and system integration, enabling partnerships and Banking-as-a-Service models.
What has been the focus of central banks between 2022 and 2023? - Answers Accelerating the
development of Central Bank Digital Currencies (CBDCs) and stronger regulation of cryptocurrency
markets.
What is the benefit of the fintech-bank partnership model? - Answers Fintechs leverage the bank's
reputation, while banks leverage the fintech's technology infrastructure.
What is cryptocurrency? - Answers A digital currency using encryption to regulate unit generation
and verify fund transfers, operating independently of a central bank.
