Lending, Crowdfunding, and Modern Investing

Go to Course: https://www.coursera.org/learn/wharton-crowdfunding-marketplace-lending-modern-investing

Introduction

## Course Review: "Lending, Crowdfunding, and Modern Investing" on Coursera In today’s fast-paced financial landscape, understanding the mechanisms of modern investing is not just advantageous—it's essential. Coursera’s course "Lending, Crowdfunding, and Modern Investing," taught by the esteemed Professor David Musto from the Wharton School, offers a comprehensive exploration of the innovative investment strategies that are reshaping how individuals and institutions approach finance. ### Course Overview This course brings together three key components of modern investing: robo-advising, crowdfunding, and marketplace lending. Participants will gain a solid grounding in the theoretical concepts underpinning these areas, especially Modern Portfolio Theory (MPT) and the rapidly developing field of Financial Technology (FinTech). ### Syllabus Breakdown **Module 1: Robo-Advising** The journey begins with an in-depth look at robo-advisers—automated platforms that provide financial planning and investment management. This module carefully examines the core principles of MPT, including Mean Variance Optimization and diversification, arming you with the skills to assess both traditional and robo-advised investment strategies effectively. By the end of this module, you'll appreciate how robo-advisers deliver high-impact advice while minimizing costs. **Module 2: Crowdfunding** As you progress, you'll dive into the realm of crowdfunding—a revolutionary method for raising capital through various online platforms. This module emphasizes the complexities of crowdfunding, the implications of the JOBS Act of 2012, and the nuances of impact investing. Through rigorous analysis, you’ll learn to balance the potential risks and rewards associated with this new investment landscape, developing a robust framework to navigate its challenges effectively. **Module 3: Marketplace Lending** Marketplace lending, particularly peer-to-peer lending, represents another innovative financial avenue explored in this course. This module helps you identify various types of debt within household finances and the transformative role of FinTech companies in improving consumer credit access. Expect to gain a critical understanding of how these platforms refine traditional lending practices, equipping you with analytical tools to leverage financial technology for enhanced fiscal health. **Module 4: Case Studies** Finally, the course culminates in practical applications with an engrossing case study module. You will explore successful fintech companies, guided by insights from industry leaders like David Klein and Jackie Reses. These real-world examples showcase the power of fintech and provide a clearer picture of how emerging technologies can create new market opportunities. ### Recommendation "Lending, Crowdfunding, and Modern Investing" is a must-take course for anyone looking to enhance their investment acumen in the context of modern finance. Whether you are a finance professional, a student, or an investor looking to adapt to recent trends, this course stands out for its clear structure, insightful content, and relevance to today's market dynamics. Professor Musto’s expertise and engaging teaching style enrich the learning experience, making complex concepts accessible and understandable. With its practical insights and progressive approach, this course empowers you to not just understand but also to apply investment theories effectively. ### Final Thoughts Investing is no longer limited to traditional avenues; the landscape is evolving rapidly. By enrolling in this course, you are taking a significant step towards becoming a more informed and strategic investor. The knowledge gained will undoubtedly enable you to navigate the intricacies of modern investing with confidence. So, if you aspire to optimize your investments or simply wish to explore the cutting-edge of finance, look no further than "Lending, Crowdfunding, and Modern Investing" on Coursera!

Syllabus

Module 1: Robo-Advising

What are Robo-advisers and how do they add value to the customers? This module was designed to give you foundational knowledge of Modern Portfolio Theory and Robo-Advising. You’ll identify and analyze the building blocks of robo-advising, and gain a better understanding of how robo-advisers deliver high-impact investment advice at high volume and low costs. Through the framework of Modern Portfolio Theory, you’ll learn key concepts such as Mean Variance Optimization, the importance of diversification, and the foundations of Index Mutual Funds. By the end of this module, you’ll be better able to assess the risks and benefits of traditional investment advising to secure a better return on your investments.

In this module, you’ll examine the promises and challenges of crowdfunding, and look closely at impact Investing. First, you'll explore the risks behind investing through crowdfunding. You’ll also learn about the JOBS Act of 2012 and identify the new approaches to finance innovation caused by the statute. Through calculation of the costs of using crowdfunding for investment, you’ll analyze the value "the wisdom of crowds" and gauge the risks and rewards of impact investing. By the end of this module, you’ll have a framework for thinking of the challenges that crowdfunding presents and how to overcome them effectively while exerting sustainable and meaningful impact.

In this module, you’ll examine peer-to-peer lending and its effect on the consumer credit landscape and marketplace lending. Through identification and understanding of the different types of debt in an average household, you’ll develop the analytical skills to exploit opportunities to use financial technologies to improve your financial health. You’ll also discover the value of peer-to-peer lending platforms and how they offer an alternative method to financing debt. By the end of this module, you’ll gain a better understanding of the current consumer credit landscape and be able to better analyze the methodology behind fintech companies that refinance loans for consumers.

This module was designed to provide you with an opportunity to explore successful fintech companies in action, so you can develop an understanding of how the capabilities of fintech can be form the foundations of new business models. David Klein, CEO of CommonBond, and Jackie Reses, Capital Lead of Square, provide deeper insights into the evolution of fintech, and explain how their organizations effectively utilized fintech's benefits while overcoming its challenges. By the end of this module, you’ll have a better understanding of the practical applications of fintech in an organization and fintech's potential for creating new market opportunities.