Financial Regulation in Emerging Markets and the Rise of Fintech Companies

Go to Course: https://www.coursera.org/learn/financial-regulation

Introduction

# Course Review: Financial Regulation in Emerging Markets and the Rise of Fintech Companies In the rapidly evolving landscape of finance, few subjects are as crucial and timely as the intersection of financial regulation and fintech innovation, particularly in emerging markets. Coursera’s course, **"Financial Regulation in Emerging Markets and the Rise of Fintech Companies,"** delves into this compelling topic, offering learners a comprehensive overview of the regulatory challenges and innovations shaping the fintech sector today. ## Course Overview This course is designed for students, professionals, and anyone interested in understanding the relationship between financial regulation and the emergence of fintech companies globally. It contextualizes the rise of fintech in light of significant financial crises—namely, the 1997 Asian crisis and the 2008 global financial crisis—that prompted governments to implement stringent financial regulations aimed at safeguarding stability. In doing so, however, banks and financial institutions have faced challenges in maintaining profitability, paving the way for fintech companies to emerge and thrive. ## Syllabus Breakdown ### **Week 1: Financial Crises** The course kicks off with a thorough examination of financial crises in the late 1990s and early 2000s, setting the stage for understanding the growth of fintech in emerging markets. This week, participants will get acquainted with the basic mechanisms of banking and learn how past crises have shaped the current financial landscape. The insights gathered here will be crucial for grasping the new financial regulations that craft opportunities and challenges for fintech today. ### **Week 2: Post-crisis Regulations** Next, the focus shifts towards understanding the regulatory framework that arose from historical financial collapses, beginning with the Great Depression. This week will detail the vital role of international financial institutions and monetary policy, offering a backdrop that clarifies how existing regulatory structures influence fintech innovations. ### **Week 3: Fintech Regulation in Emerging Markets** This week represents the course's crux, diving into the specific challenges and opportunities presented by fintech in emerging economies. By primarily examining South Africa, China, and Brazil, learners will engage with real-world applications of Initial Coin Offerings (ICOs) and hear firsthand accounts from professionals in the fields of banking and fintech. ### **Week 4: Rise in Fintech Companies** In the final week, the course highlights practical applications of fintech, focusing on peer-to-peer lending and remittances as significant areas of disruption. The discussion will explore how fintech provides innovative solutions for populations often excluded from traditional banking. The course concludes with a compelling assignment that allows learners to apply their knowledge substantively. ## Recommendation I highly recommend this course for anyone looking to deepen their understanding of the fintech landscape within the context of emerging markets. The content is both relevant and insightful, making it suitable for students, finance professionals, and policymakers alike. In addition to its rich theoretical basis, the course leverages case studies and interviews with industry experts, offering learners valuable perspectives and a real-world connection to the material. Not only does this course elucidate the complexities of financial regulation and fintech innovation, but it also empowers participants to think critically about how emerging economies can harness technological advancements to foster inclusion and economic growth. The design promotes active engagement and practical application, making it an ideal resource for those wishing to navigate the ever-changing world of finance. In conclusion, if you're eager to explore the transformative impact of fintech in emerging markets and understand the regulatory challenges that accompany this evolution, **"Financial Regulation in Emerging Markets and the Rise of Fintech Companies"** is an invaluable course that warrants your attention.

Syllabus

Financial Crises

So you’re interested in the opportunities for fintech? I’ll be taking you back to the key events in the financial crises of the late 1990s and early 2000s in order to understand the growth of fintech in emerging markets. We’ll be looking at the basic mechanisms behind banking and what happened when the financial markets crashed. It’s essential for us to become familiar with the new financial regulations and how they create opportunities and constraints for fintech today. Over the four weeks of the course, you will be invited to think about how new financial regulations have spurred the rise of fintech companies in emerging economies.

We dive into details of financial systems this week - looking at how banks function and are regulated. Using the Great Depression as a starting point, I describe what caused the collapse of banks a century ago, to reflect on the impact of the post-depression financial regulations that followed. These regulations included the establishment of international financial institutions that controlled current monetary policies. Being familiar with the current financial regulatory framework and where it comes from provides the basis for understanding the disruptions from the fintech innovations we will be covering next week.

We've now reached the heart of the course - looking at the context of fintech in emerging economies and what makes them different. To begin we will look at Initial Coin Offerings (ICO) which are one of the key mechanisms used fintech companies to finance themselves. We are going to focus particularly on South Africa, China, and Brazil, and I have a number of interviews with people involved in banking, financial regulation and fintech from these countries.

In this last week of the course, we look at applications of fintech in emerging economies. I have selected two widely adopted applications to explore: peer-to-peer lending and remittances. Because of the costs of banking and the exclusion of millions from formal banking systems, entrepreneurs have been exploring innovative mechanisms to finance business by borrowing from peers. Fintech offers a fast and secure mechanism to transfer remittances that are being widely used across the world - and we will look at some examples. I also asked people from the banking sector to describe how large formal financial institutions are considering the impact of blockchain and other new technologies. At the end of this week, you will have a chance to apply what you’ve learnt in a final assignment.