FINTECH K31

April 13, 2020 (Tuesday)

Toledo, N.
Department of Financial Management, De La Salle University
Reminders
• Core topics remaining:

• IoT - today’s discussion

• AI-ML - Dr. Paguirigan will join us again

• Big Data - this thursday, asynchronous lecture

• RegTech

• Deliverables remaining

• 1 Exercise - Blockchain/IoT - April 15, 2021 (Thursday)

• 1 Long Quiz — April 22, 2021 (Thursday)

• 2 Assignments (1 w/ short presentation/recitation)

• Hot Fintech Battles - April 20, 2021 (Tuesday)

• Pechakucha (Your own fintech) - May 25, 2021 (Tuesday)

• 1 Reaction Paper/Essay - individual - May 20, 2021 (Thursday)

• Journal article analysis

• Mini-Case Study

• Group Presentation (major)

• Final Paper (major)

Image source: fintechnews.sg 2
Group Presentation (May 2021)
FinTech business case

Choose 1 FinTech company and post in the group discussion:

- No repetition of FinTech companies

- First-come-first-serve

You will present on topics/issues such as the following but not limited to:

- How the fintech company works including relevance

- Identify the technologies they use and how they utilise it

- Which banks/companies are they working with?

- What improvements should the FinTech company consider?

- How does the fintech company impact the different sub-industries of Finance (Lending, Payments, Wealth Management, etc.)

You will have partner groups: Groups 1 and 3; Groups 2 and 4 (this will be part of class participation):

- Partner groups are required to participate actively during their assigned group’s presentation

- Ask questions, comment on the presentation, and suggest improvements on the assigned groups presentation

3
Guidelines
Presentation

Pre-presentation
• Use respectable sources/references

• It should tackle historical and current landscape of the topic/company/ Introduction (background of the topic/
company)
industry

Body topic 1
• It should be current and relevant (eg. local, regional, global)

Body, topic 2
• Have you accomplished the outline? Body, topic 3
During presentation Body, topic 4 etc.
• Make sure that your presentation is ready. If you will present a video, make Conclusion (opportunities, recommendations,
sure that the “audio” is also shared. Plan for back-ups, just in case, the and future trends)
speaker gets disconnected

• You are given 20 min to present

Post presentation
• Those who are done presenting should:

• Submit a copy of their presentation

• Accomplish the peer evaluation - this will be uploaded in AnimoSpace

• The group presentation is 20% of your grade

4
 Group Presentation
Schedule of Presentation (as of April 13, 2021)

SOME ADJUSTMENTS: Schedule of Presentation Partner Group

- PREPARE A PRE-
RECORDED VIDEO Group 1 : May 4, 2021 Group 4
- REVISED
PRESENTATION
DATES Partner groups are
Group 2 : May 4, 2021 Group 5 required to participate
actively during their

[
assigned group’s
Group 3 : May 4, 2021 Group 6 presentation

Group 4 : May 6, 2021 Group 1

Group 5 : May 6, 2021 Group 2

Group 6 : May 6, 2021 Group 3

5
 GROUPINGS
Group 1 Group 2 Group 3 Group 4 Group 5 Group 6

Mary Khristine Bea Llana Artates,

Juan Alianne Alfonso John Reyes (Leader) Waxx Navales Princess

Angelique De Leah Beatrice

Leon Katherine Batto Audrey See Jan Gavin Go Tagabucba Dabatos, Mary

Gillian
Santino Palacios Carbonilla Shaila Sy Reignard Uy Joaquin Sese Edralin, Dazle

Dane Amil Vera Lacandili Issey Tan Aaron Yaneza Regine Torres Rivera, Isabelle

Tenorio,
Reynalyn
What is Blockchain?

“Blockchain is a shared, immutable ledger for recording

transactions, tracking assets and building trust.”

Image source: fintechnews.sg

Bitcoin and “Satoshi Nakamoto”
• Bitcoin and blockchain are not the same

=
How does blockchain work?

YouTube, What is hashing on the Blockchain

via https://www.youtube.com/watch?v=IGSB9zoSx70

Source: Gupta, 2020

Understanding blockchain
Types of blockchain

• Public blockchain networks - is one that anyone can

join and participate in, such as Bitcoin. Drawbacks
might include substantial computational power
required, little or no privacy for transactions, and
weak security.

• Private blockchain networks - similar to a public

blockchain network, is a decentralized peer-to-peer
network. However, one organization governs the
network, controlling who is allowed to participate,
execute a consensus protocol and maintain the
shared ledger.

• Permissioned blockchain networks - Businesses

who set up a private blockchain will generally set up
a permissioned blockchain network. It is important to
note that public blockchain networks can also be a
permissioned.

• Consortium blockchains - is ideal for business when

all participants need to be permissioned and have a
shared responsibility for the blockchain.

Source: ibm.com
Infographic: 101blockchains.com
Key Concepts of blockchain for business

Image source: Gupta, 2020

Understanding blockchain
Understanding blockchain
Traditional system VS Blockchain

VS
 Infogrpahic 1: block geeks.com
Inforgraphic 2: Abbaspour, 2018
Blockchain and possible applications

Healthcare
Education Logistics

Government
??? Insurance

Agriculture
Management
Image source: tridenstechnology.com
What is it?

When you Google “what is IoT,” many of the answers are

unnecessarily technical . Case in point:
“The Internet of Things (IoT) is a
system of interrelated computing
devices, mechanical and digital
machines, objects, animals or people
that are provided with unique identifiers
and the ability to transfer data over a
network without requiring human-to-
human or human-to-computer
interaction.”

• Google

Image source: medium.com

What is it?

When you Google “what is IoT,” many of the answers are

unnecessarily technical . Case in point:
“The Internet of Things (IoT) is a system of
interrelated computing devices, mechanical
and digital machines, objects, animals or
people that are provided with unique
identifiers and the ability to transfer data
over a network without requiring human-to-
human or human-to-computer interaction.”

• Google

The Internet of Things is actually a pretty

simple concept . It means taking all the
physical places and things in the world
and connecting them to the internet .
• Simple explanation

Image source: medium.com

Why IoT Matters?

• When something is connected to the internet, that means that it can send information or receive
information, or both . This ability to send and/or receive information makes things “smart .”

• To be smart, a thing doesn’t need to have super storage or a super computer inside of it - it just needs
access to it . In the Internet of Things, all the things that are being connected to the internet can be put
into three categories:

1 .  Things that collect information and then send it 


2 .  Things that receive information and then act on it 


3 .  Things that do both

All three (3) of these have enormous benefits that compound on each other

Why IoT Matters?

• Collecting and Sending Information: Sensors could be temperature sensors, motion sensors, moisture
sensors, air quality sensors, light sensors, you name it . These sensors, along with

a connection, allow us to automatically collect information from the environment which, in turn, allows us to
make more intelligent decisions .

• Receiving and Acting on Information: with machines getting information and then acting . Your printer
receives a document and it prints it. The real power of the Internet of Things arises when things can do both
of the above . Things that collect information and send it, but also receive information and act on it .

• Doing Both (This is the “goal of an IoT System”): Example - farming —Sensors can collect info about soil
moisture to tell the farmer how much to water the crops, but you don’t actually need the farmer . Instead,
the irrigation system can automatically turn on as needed based on how much moisture is in the soil . If the
irrigation system receives information about the weather from its internet connection, it can also know when
it’s going to rain and decide not to water the crops today because they’ll be watered by the rain anyways .
And it doesn’t stop there! All this information about the soil moisture, how much the irrigation system is
watering the crops, and how well the crops actually grow can be collected and sent to supercomputers that
run amazing algorithms that can make sense of all this information .
The Power of IoT

distinction between consumer IoT and enterprise IoT

• Consumer IoT refers to things like wearables, smart home devices, etc ., all
of which are marketed directly to consumers .

• Enterprise IoT refers the use of IoT in improving an organization’s existing

systems and processes and enabling organizations to increase operational
efficiency or unlock entirely new value (e .g . by launching new business lines
or products) .
The Power of IoT

distinction between consumer IoT and enterprise IoT

• Consumer IoT refers to things like wearables, smart home devices, etc ., all
of which are marketed directly to consumers .

• Enterprise IoT refers the use of IoT in improving an organization’s existing

systems and processes and enabling organizations to increase operational
efficiency or unlock entirely new value (e .g . by launching new business lines
or products) .
 What is it?

• The IoT brings the power of the internet,

data processing and analytics to the real
world of physical objects. For consumers,
this means interacting with the global
information network without the
intermediary of a keyboard and screen;
many of their everyday objects and
appliances can take instructions from that
network with minimal human intervention.

• In enterprise settings, IoT can bring the

same efficiencies to physical manufacturing
and distribution that the internet has long
delivered for knowledge work. Millions if not
billions of embedded internet-enabled
sensors worldwide are providing an
incredibly rich set of data that companies
can use to gather data about their safety of
their operations, track assets and reduce
manual processes. Researchers can also
use the IoT to gather data about people's
preferences and behavior, though that can
have serious implications for privacy and
security.

Image source: medium.com

The Power of IoT

Increasing efficiency

Process efficiency

Asset Tracking

Energy Efficiency

Inventory Management

Image source: electronicdesign.com

The Power of IoT

Improved Health and Safety

Warnings/Notices

Law Enforcement

Automatic Response

Improving Interface Quality

Image source: electronicdesign.com

The Power of IoT

Better Experience

The Internet of Things will allow our

world to increasingly shape itself to our
needs and our wants, creating a better
experience . Rather than just passively
providing information and reacting to
our inputs, much of the value of IoT will
come from anticipating and addressing
needs automatically .

Image source: electronicdesign.com

How an IoT System Actually Works

1) Sensors/Devices

2) Connectivity

3) Data Processing

4) User Interface

An IoT system consists of sensors/devices which “talk” to the cloud through some kind of connectivity .
Once the data gets to the cloud, software processes it and then might decide to perform an action, such
as sending an alert or automatically adjusting the sensors/devices without the need for the user .

Image source: dataflair.com

Sensors and Devices

• Hardware Capabilities

• Battery Considerations

• Over-the-Air (OTA) Firmware

Updates

IoT applications vary so widely in their

requirements that a comprehensive
exploration of all considerations isn’t within
the scope of our discussion

Image source: robots.net

Sensors and Devices

• Scaling and Operations

• Battery/Power Considerations

• Sensor/Device Association

• Sensor/Device Errors

This is why many IoT deployments fail . Not

because the underlying technology isn’t good
enough, but because the sheer operational
burden makes the return-on-investment not
worth the effort

Image source: robots.net

Sensors and Devices

• Gateways

• Varying Protocols

• Unfiltered Data

• High Latency

• Security
Not all IoT applications will need a gateway, but
they’re an important class of hardware that’s often
a requirement for certain use cases because
they’re needed to provide the connectivity to the
sensors/devices .
Image source: robots.net
Connectivity

• When to Skip Connectivity

• Why Skip? — Latency

• So How Do You Skip —

process the data on a
gateway or on the sensor/
device itself

• fog computing or edge computing (because

you’re bringing the cloud “closer to the
ground” and the computing is taking place
at the edges of the IoT system rather than
the center)
Image source: developer.qualcomm.com
 Connectivity
• Cellular, satellite, WiFi,
BlueTooth, RFID, NFC, Ethernet

• When to Skip Connectivity

• Why Skip? — Latency

• So How Do You Skip —

process the data on a gateway
or on the sensor/ device itself

• fog computing or edge computing (because

you’re bringing the cloud “closer to the
ground” and the computing is taking place
at the edges of the IoT system rather than
the center)

Image source: developer.qualcomm.com

Connectivity

• Every IoT system combines the

four components we’ve outlined
and begun to detail: Sensors/
Devices, Connectivity, Data
Processing, and User Interface

IoT applications can vary greatly,

but many applications need tons of
sensors spread over big areas .
There are many ways for these
sensors/ devices to communicate,
each with varying pros and cons .

Image source: developer.qualcomm.com

Connectivity

• Cellular

• Cellular networks provide the

backbone for much of what
we know and love, allowing
us to access the internet,
send messages, and connect
with friends .

• There will always be a tradeoff

between power consumption,
range, and bandwidth

Image source: developer.qualcomm.com

Connectivity

• Going back to 5G discussion

• Some of these cellular technologies are

currently available, and others are promised
but yet to come .

• This also includes 5G, which will also have

significant implications for IoT applications

IoT covers a broad spectrum of applications .

Sometimes you need high bandwidth, like with
real-time surveillance . For asset tracking, data
throughput is small, but there are inevitably
many handovers as objects move.

Image source: developer.qualcomm.com

Connectivity

• Satellite has excellent

coverage, but with it comes
larger equipment and higher
battery usage than other
connectivity options .

• Has good bandwidth, but can

be expensive at scale

Image source: developer.qualcomm.com

Connectivity

• WiFi

• there are several versions of WiFi including, 802

.11a, 802 .11b, 802 .11g, 802 .11n, and 802 .11ac .

• while WiFi currently isn’t great for many IoT

applications, there are two WiFi standards that
have been developed, or are being developed,
specifically for IoT; WiFi HaLow (802 .11ah) and
HEW (802 .11ax) .

One of the advantages of WiFi is that it’s a proven and

standardized technology that’s already present in many
buildings and public areas .

Image source: developer.qualcomm.com

Connectivity

• Bluetooth

• Bluetooth has since expanded into a broad

variety of applications including Bluetooth
headsets, speakers, printers, video game
controllers, and much more .

• Bluetooth was meant for portable equipment

and related applications therefore excels when
you need to connect two devices with minimal
configuration.

Bluetooth can also provide indoor asset tracking

by using multiple Bluetooth beacons and using
their relative signal strengths to triangulate
position .

Image source: developer.qualcomm.com

Data Processing

• IoT and Cloud

• Activities like storage and data

processing take place in the cloud
rather than on the device itself, this
has had significant implications for
IoT .

• Many IoT systems make use of large

numbers of sensors to collect data
and then make intelligent decisions .

For much of IoT, the head (or rather, the brain) of the system is in the cloud . Sensors/devices collect data and perform
actions, but the processing/ commanding/analytics (aka the “smart” stuff), typically happens in the cloud .
Image source: fingrent.com
Data Processing

• Is the Cloud Necessary for IoT? Not necessarily, The data

processing and commanding could take place locally rather than in
the cloud via an internet connection . Known as “fog computing” or
“edge computing”, this actually makes a lot of sense for some IoT
applications .

• There are substantial benefits to be had using the cloud for many IoT
applications including:

→ Decreased costs, both upfront and infrastructure

→ Pay-as-needed for storage/computing

→ High system scalability and availability

→ Increased lifespan of battery-powered sensors/devices

→ Ability to aggregate large amounts of data

→ Anything with an internet connection can become “smart”

• Legitimate concerns with cloud usage: data ownership, potential

crashes, latency

Image source: fingrent.com

Data Processing

• What is an IoT platform exactly?

• IoT platforms are the support software that

connects everything in an IoT system . An IoT
platform facilitates communication, data flow,
device management, and the functionality of
applications .

• IoT platforms help:

→ Connect hardware;

→ Handle different communication protocols;

→ Provide security and authentication for devices and
users;

→ Collect, visualize, and analyze data; and,


→ Integrate with other web services .

Image source: fingrent.com

Data Processing

• When should organisations use an IoT

Platform?

• IoT platforms exist to help

businesses overcome technical
challenges without the need to figure
it all out in-house .

• Tadeoff : IoT platforms that saves

time may cost more in the long run
depending on how they’re priced and
IoT platforms that are inexpensive up
front will likely cost time

Image source: fingrent.com

Data Processing

• APIs

• Even at just the cloud level there is a need

for systems to communicate and work
together and that’s what Application
Program Interfaces (APIs) make possible .

• This is especially important for programs

because they can be written in different
languages, so APIs provide a means for
different programs to overcome the
“language barrier” .

• APIs reduce complexity

APIs are hugely important to the Internet of Things.

Image source: fingrent.com

User Interface and User Experience in IoT

• User Interface

• Native Apps

• Web Apps

• Hybrid Apps

• User Experience

• user experience is “all aspects of the end-user’s

interaction with the company, its services, and its
products .”

User interfaces do not exist in a vacuum, it is important to consider the experience you want your suers to
have to achieve desired interaction with the system .
Image source: creative-tm.com
How big is it?

• There are more than 50 billion IoT devices as of 2020, and those devices
will generate 4.4 zettabytes of data this year. (A zettabyte is a trillion
gigabytes.) By comparison, in 2013 IoT devices generated a mere 100
billion gigabytes. The amount of money to be made in the IoT market is
similarly staggering; estimates on the value of the market in 2025 range
from $1.6 trillion to $14.4 trillion.

Image source: tridenstechnology.com

IoT for Financial Services
Applications

• Payments gone cashless

• Immediate support and personalisation

• Smart bank branches and ATMs

• Using IoT for optimising “voice” tech

• Improved spending visibility

• Authentication and security

• Fraud detection

• Risk assessment for insurance and loan

• Unlock ATM doors during off-hours

Image source: fintechnews.sg
IoT for Financial services
FinTech

• IoT’s market size in the financial and banking industry

is projected to grow to over USD 2 billion by 2023. 

• The acquisition rate of financial IoT is 64%

worldwide. Bank customers like IoT solutions due to
diminished transaction fees. IoT directly connects a
business with a bank, hence there’s no requirement
to use Visa and MasterCard gateways. Both are
known for high credit card processing fees, ranging
from 1.9% to 2.5% per transaction.

• Connected devices are on the boom as per Statista,

there will be over 75 billion of such by 2025.

• Considering that the data given by the IoT is quite

useful, there is bound to be extensive fostering of the
technology in economic solutions.

Image source: fintechnews.sg

IoT and FinTech
Benefits

• Prompt Customer Assistance

• Indoor Customer Navigating

• On-site Line Management

• Improving Customer Service

• Making Wireless Settlements

• Authentication and Safety

• Boosted Business Efficiency Through

Automation

• Self Check-Out Services

Image source: fintechnews.sg
Image source: fintechnews.sg
IoT and FinTech
FinTech Examples

• kontakt.io

• Armis

• Dynamics

• Metromile

Image source: fintechnews.sg

Image source: tridenstechnology.com
Major sources

Arjunwadkar, P. (2018). FinTech: The Technology Driving Disruption in the Financial Services Industry. CRC Press.

Chishti, S., and Barberis, J. (2016) The FinTech Book: The Financial Technology Handbook fro Investors, Entrepreneurs and
Visionaries. John Wiley & Sons Ltd. LCCN 2016000567| ISBN 9781119218876

25
Exercise :)
How do your chosen FinTechs apply blockchain/IoT?

By now, you should have chosen a FinTech company…

In approx. 500 words (not more than 800), explain how your chosen FinTechs
apply blockchain/IoT. Cite examples.

Submission via AnimoSpace

Deadline: April 15 (Thursday), 4:00 pm

 Group Work! (Under Assignment)
Hot FinTech Battles

In approx. 800 words, provide insights on the following:

Group 1: Is PayPal still the leader? How do the major competitors par?

Group 2: Grab vs Gojek, the super apps of SEA. What happens if a merger happens or the completion tightens?

Group 3: GCash or PayMaya? Who will lead in the next five years?

Group 4: Shopee vs Lazada? Who wins in SEA? And what if Amazon goes full blown?

Group 5: Ayden and Alipay’s partnership. What will be the consequence?

Group 6: eToro vs the competitors. How’s the landscape of the trading platforms?

Submission via AnimoSpace, April 20, 2021 (Tuesday), 4:00 pm. Cite your sources.
Questions/Concerns

AnimoSpace, discussion threads

nissa.toledo@dlsu.edu.ph