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Blockchain Finance Fintech. Innovation

Understanding Decentralized Finance: How DeFi is Changing the Future of Money

Understanding Decentralized Finance demystifies DeFi, locating the integration points between decentralised and centralized finance to help finance professionals unlock valuable opportunities.

DeFi – the next evolution of cryptocurrency – has brought a new wave of investors into the world of finance. As fintechs and financial institutions seek to integrate with DeFi, this book explores its history, its present context, and its future. It explains the world of DeFi by comparing it to the traditional finance sector, highlighting points of similarity, difference and integration.

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Artificial Intelligence Finance Fintech.

How will AI transform Finance and FinTech sectors?

From chatbots and robo-advisors to predictive analytics and algorithmic trading, artificial intelligence (AI) is transforming the finance and FinTech sectors like never before. In recent years, we’ve seen a rapid adoption of AI-powered solutions in various areas of finance, from risk management and portfolio optimization to payment processing and fraud detection. But what does this […]

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Finance Fintech.

What drives ๐ฌ๐ญ๐จ๐œ๐ค ๐ฉ๐ซ๐ข๐œ๐ž๐ฌ up and down?

The diagram below shows how ๐๐ž๐ฆ๐š๐ง๐ ๐š๐ง๐ ๐ฌ๐ฎ๐ฉ๐ฉ๐ฅ๐ฒ make the prices go up or down, using Metaโ€™s stock as an example. All the buy/sell orders are placed into a ๐‚๐‹๐Ž๐ (Centralized Limited Order Book). Green ones are buy orders, and red ones are sell orders. At each price level, there are several orders queued up […]

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Finance Fintech.

What are the 4 models of ๐œ๐ซ๐จ๐ฌ๐ฌ-๐›๐จ๐ซ๐๐ž๐ซ ๐ฉ๐š๐ฒ๐ฆ๐ž๐ง๐ญ๐ฌ?

The diagram below shows the 4 models. โ–ถ๏ธ 1. ๐‚๐จ๐ซ๐ซ๐ž๐ฌ๐ฉ๐จ๐ง๐๐ž๐ง๐ญ ๐›๐š๐ง๐ค๐ข๐ง๐  ๐ฆ๐จ๐๐ž๐ฅ The correspondent bank holds deposits owned by other banks from other countries. This allows banks to access financial services in different jurisdictions. Under some international card schemes (Visa, Mastercard), participating banks typically rely on correspondent banking for settlement. [1] โ–ถ๏ธ 2. ๐ˆ๐ง๐ญ๐ž๐ซ๐ฅ๐ข๐ง๐ค๐ข๐ง๐  ๐ฆ๐จ๐๐ž๐ฅ […]

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Finance Fintech.

Why are stocks settled so slowly (T+2)?

The diagram below shows the overall flow. There are 3 parts: ๐Ÿ”น Trading ๐Ÿ”น Clearing ๐Ÿ”น Settlement โ–ถ๏ธ ๐“๐ซ๐š๐๐ข๐ง๐  Steps 1.1 – 1.3: The stock buyer and seller place orders via brokers or custodian banks. Step 2: The brokers execute the orders in the exchange. โ–ถ๏ธ ๐‚๐ฅ๐ž๐š๐ซ๐ข๐ง๐  Step 3: The exchange sends execution reports to […]

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Finance Fintech.

๐–๐ก๐š๐ญ ๐ข๐ฌ ๐‚๐๐ƒ๐‚ (Central Bank Digital Currency)?

Why is it called ๐ฉ๐ซ๐จ๐ ๐ซ๐š๐ฆ๐ฆ๐š๐›๐ฅ๐ž ๐ฆ๐จ๐ง๐ž๐ฒ? The diagram below shows a typical retail ๐ญ๐ฐ๐จ-๐ญ๐ข๐ž๐ซ CBDC architecture. Tier 1 is the ๐œ๐ž๐ง๐ญ๐ซ๐š๐ฅ ๐›๐š๐ง๐ค, which is in charge of ๐ข๐ฌ๐ฌ๐ฎ๐ข๐ง๐  CBDC. Unlike cash, the issuing doesnโ€™t involve printing out money, rather it is just a digital currencies that exist in the central bankโ€™s system. Tier 2 is […]

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Finance Fintech.

โ€œ๐œ๐ซ๐ž๐๐ข๐ญโ€ card vs โ€œ๐๐ž๐›๐ข๐ญโ€ card

Why is a credit card called a โ€œ๐œ๐ซ๐ž๐๐ข๐ญโ€ card? Why is a debit card called a โ€œ๐๐ž๐›๐ข๐ญโ€ card? ๐Ÿ‘‡ An example of a debit card payment is shown in the diagram below. ๐Ÿ”ธ Each transaction in the business system is transformed into at least two journal lines in the ledger system. This is called ๐๐จ๐ฎ๐›๐ฅ๐ž-๐ž๐ง๐ญ๐ซ๐ฒ […]

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Finance Fintech.

What is Buy Now, Pay Later (BNPL) and how does it work?

What is the revenue model for BNPL providers? The growth of BNPL has been dramatic in recent years. The BNPL provider represents the primary interface between the merchants and the customers for both eCommerce and POS (Point of Sale). The diagram below shows how the process works: Step 0. Bob registers with AfterPay. An approved […]

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Finance Fintech.

What is ๐’๐–๐ˆ๐…๐“? How does SWIFT wire transfer work in ๐œ๐ซ๐จ๐ฌ๐ฌ-๐›๐จ๐ซ๐๐ž๐ซ ๐ฉ๐š๐ฒ๐ฆ๐ž๐ง๐ญ๐ฌ?ย ย ย ย 

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is the main secure ๐ฆ๐ž๐ฌ๐ฌ๐š๐ ๐ข๐ง๐  ๐ฌ๐ฒ๐ฌ๐ญ๐ž๐ฆ that links the worldโ€™s banks. The Belgium-based system is run by its member banks and handles ๐ฆ๐ข๐ฅ๐ฅ๐ข๐จ๐ง๐ฌ ๐จ๐Ÿ ๐ฉ๐š๐ฒ๐ฆ๐ž๐ง๐ญ ๐ฆ๐ž๐ฌ๐ฌ๐š๐ ๐ž๐ฌ per day. The diagram below illustrates how payment messages are transmitted from Bank A (in New York) to Bank B (in […]

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Finance Fintech.

Operational Risk Management : A Complete Guide for Banking and Fintech, 2nd Edition

Identify, assess, and mitigate operational risk with this practical and authoritative guide

In the newly revised second edition ofย Operational Risk Management: A Complete Guide for Banking and Fintech,ย accomplished risk executive and expert Philippa Girling delivers an insightful and practical exploration of operational risk in organizations of all sizes. She offers risk professionals and executives the tools, strategies, and best practices they need to mitigate and overcome ever-present operational risk challenges that impact business in all industries.

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