Learning Objectives:

  • Identify and explain key innovations in payments, lending, and wealth management.

  • Understand the business models and value propositions of each segment.

  • Critically assess the risks and opportunities in these segments.

5.1 Payments Innovation

The University of South Wales module includes a dedicated week on “Payments Innovation” . Key payment innovations covered in global syllabi include [citation:1,5,10,11]:

  • Instant Payments and A2A Payments: Real-time, account-to-account payments that bypass traditional card networks .

  • Digital Wallets: Mobile-based storage of payment credentials and contactless payment capabilities .

  • BNPL (Buy Now Pay Later): Short-term financing options offered at the point of sale .

  • Digital Payment Systems: Includes electronic payment systems, mobile money, digital wallets, payment gateways, and real-time payment infrastructures .

5.2 Digital Lending

The “FinTech for Consumer Financial Services” module at Warwick University focuses on the “platformization of Finance Services: Payments, P2P Lending, Crowdfunding, Cryptocurrency” . The University of South Wales module covers “Digital Lending and Wealth Management” . Key innovations include:

  • Digital Lending Platforms: Online platforms that connect borrowers and lenders.

  • Alternative Credit Scoring: Using non-traditional data (e.g., mobile phone usage, social media) to assess creditworthiness.

  • Automated Underwriting: Using AI and machine learning to automate loan approvals.

5.3 Wealth Management

The “Digital Lending and Wealth Management” week at the University of South Wales includes key readings on robo-advisors . Robo-advisors are “automated investment platforms that provide financial advice and portfolio management with minimal human intervention” . The SUSS course covers “AI and Robo advisor” as a core topic .

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