Learning Objectives:

  • Analyse the impact of technology and FinTech on banking.

  • Understand ESG and sustainability issues in banking.

  • Identify future trends and challenges facing the banking industry.

8.1 Technology and FinTech

The course covers “technology & the rise of FinTech” as a core topic . The HSE course includes “Financial Markets and Instruments” as a core topic, covering modern financial instruments and their evolution .

Key Themes:

  • Digital Banking: The shift from branch-based to digital-first banking. The UCAS Banking and Finance programme includes “Foundations and Applications of Financial Technology (FinTech)” as a core module .

  • FinTech Innovation: Technology-driven innovation in financial services. The ARU Banking, Finance and FinTech programme includes “Applied Fintech: Data Analytics and Python” as a core module .

  • Open Banking: API-driven data sharing and integration.

  • Cybersecurity: Managing technology risks in banking.

The course notes that “innovations, technologies, taxes and regulation, help to decrease barriers for capital flows” .

8.2 ESG and Sustainable Banking

The course covers “green finance & sustainable banking” as a core topic . The UCAS Banking and Finance degree includes “Corporate Social Responsibility & Ethics” as a core module .

Key Themes:

  • Climate Risk: Physical and transition risks from climate change.

  • Green Finance: Financing environmentally sustainable projects.

  • ESG Integration: Integrating environmental, social, and governance factors into banking decisions.

  • Sustainable Finance: The growth of green bonds, social bonds, and impact investing.

8.3 The Future of Banking

The course requires students to “critically appraise emergent developments impacting global banking” . Key trends include:

  • Regulatory Evolution: Continued evolution of Basel and national regulatory frameworks.

  • Business Model Innovation: Adaptation to changing customer expectations and competition.

  • Globalisation and Geopolitics: Navigating international tensions and trade problems.

  • Sustainability: Meeting societal expectations for responsible banking.

The course notes that “the development of the economic systems are determined by the international capital flows, channeled by banks and other financial intermediaries” .

8.4 The 2007-2009 Financial Crisis

The HSE course requires students to “discuss the main factors and developments of the 2007-2009 financial crisis” . The course notes that “in 2008 these trends culminated in the world financial crisis which illuminated the most weak points in regulation, accounting, risks analysis, and other aspects of banking” .

Key Lessons from the Crisis:

  • The importance of effective risk management.

  • The need for robust capital and liquidity standards.

  • The systemic importance of large financial institutions.

  • The role of regulation in preventing excessive risk-taking

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