IPA IP 2021 Question 13
A question IPA Japan published in 令和3年度 ITパスポート試験 公開問題 問13, translated into English. ITPEC is based on the same exams.
Which of the following is the most appropriate example of FinTech?
Explanation
A robo-advisor that proposes investment trusts and manages assets automatically — FinTech means new financial services created with IT such as AI.
FinTech (finance + technology) is the use of IT, such as AI, big data, smartphones and APIs, to create financial services that did not exist before or to change how existing ones are delivered. A robo-advisor uses algorithms to suggest investment products matched to a customer and to manage the customer’s assets automatically, a service that used to need a human adviser. Mobile payment, crowdfunding and online lending are other typical examples.
Answer (c)
Why not others:
- •(a) — switching the core banking system to a backup is a fault-tolerance and business continuity measure, not a new financial service
- •(b) — locking a card after repeated wrong PIN entries is a long-standing security control against unauthorized use
- •(d) — raising and lowering grades and premiums by accident history is the conventional rating scheme of car insurance; selling it over the Internet does not make it a new IT-driven service
Key rule: FinTech = new financial services built on IT (robo-advisors, mobile payment, crowdfunding); availability and security measures of financial systems are not FinTech.
Business Industry · AI-written, may contain errors
This question comes from the past questions IPA Japan publishes, translated into English by ITPEC Practice. ITPEC Practice is an independent study tool and is not affiliated with IPA or ITPEC. See the original paper (PDF) or Report an issue.