ITPEC IP April 2022 Question 90
Which of the following terminologies refers to an initiative to develop unprecedented and innovative services by utilizing IT in the field of finance, such as a service provided by a bank where AI manages depositors’ assets automatically?
Explanation
Fintech — finance plus technology: new financial services built with IT, such as AI managing depositors' assets automatically.
Fintech covers services such as robo-advisers that invest on a customer's behalf with AI, smartphone payments, online lending with AI credit scoring, account aggregation across banks, and crypto assets on blockchain. Start-ups and banks use them to offer financial services that were not possible, or not affordable, before.
Answer (b)
Why not others:
- •(a) FA — factory automation: automating production in a factory with robots, CAD/CAM and production control systems
- •(c) OA — office automation: using computers and office equipment to make office work more efficient
- •(d) Sharing economy — platforms that match individuals lending idle assets or skills to others; not specific to finance
Key rule: Fintech is IT innovation in financial services; FA and OA are the automation of the factory and of the office.
Business Industry · AI-written, may contain errors
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