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58-550: MSF and M.Fin / MSc programs differ as to career preparation and hence degree focus — with the former centered on financial management and investment management , and the latter on more technical roles (although, see below for further discussion as to this distinction). Both degree types, though, emphasize quantitative topics, and may also offer some non-quantitative elective coursework, such as corporate governance , business ethics and business strategy . Programs generally require one to two years of study, and are often offered as

116-612: A clipped compound of " financial technology ", refers to the application of innovative technologies to products and services in the financial industry. This broad term encompasses a wide array of technological advancements in financial services, including mobile banking , online lending platforms, digital payment systems, robo-advisors , and blockchain -based applications such as cryptocurrencies . Fintech companies include both startups and established technology and financial firms that aim to improve, complement, or replace traditional financial services. The evolution of fintech spans over

174-599: A joint degree — or later pursue an M.Fin degree to gain specialized finance knowledge; some universities offer an advanced certificate in finance appended to the MBA, allowing students to complete coursework beyond the standard finance specialization. Other specialized business Masters , such as the MSM (Finance) and the MCom (Finance) closely correspond to the MSF, similarly. Note that

232-429: A professional certification program . Financial management Financial management is the business function concerned with profitability, expenses, cash and credit. These are often grouped together under the rubric of maximizing the value of the firm for stockholders . The discipline is then tasked with the "efficient acquisition and deployment" of both short- and long-term financial resources , to ensure

290-586: A "quantitative track" (and may be STEM-designated ); while others are specifically technically oriented, or, in some cases, even offer a finance and mathematics dual degree . Also, although the "MSc in Finance" generally corresponds to the M.Fin, many schools offer a range of MSc programs where finance may be combined with accountancy and/or management, and these then correspond to the MSF. MMF programs may, similarly, offer either broad- or specialized finance coverage. Many MSc programs are further specialized, with

348-511: A century, marked by significant technological innovations that have revolutionized the financial industry. While the application of technology to finance has deep historical roots, the term "fintech" emerged in the late 20th century and gained prominence in the 1990s. The earliest documented use of the term dates back to 1967, appearing in an article in The Boston Globe titled "Fin-Tech New Source of Seed Money." This piece reported on

406-447: A formal study of finance theory ; secondly, even where the theory is not studied formally, MSF programs do cover the assumptions underpinning the models studied (at least in overview); thirdly, many financial economics programs include coverage of individual financial instruments, corporate finance and portfolio management, although this treatment is usually less practical. (As regards managerial economics, similar comments apply. The course

464-474: A greater background in Finance or Economics than the MSF. Some programs may require work experience (sometimes at the managerial level), particularly if the candidate lacks a relevant undergraduate degree. Although there is some overlap with an MBA , the finance Masters provides a broader and deeper exposure to finance, but more limited exposure to general management topics. Thus, the program focuses on finance and financial markets , while an MBA, by contrast,

522-431: A mobile card reader in 2009 enabled small businesses to accept credit card payments using smartphones, democratizing access to payment processing and highlighting the transformative potential of mobile technology in the financial services industry. The evolution of mobile payment systems continued with the launch of Google Wallet in 2011 and Apple Pay in 2014, which further popularized mobile payments and demonstrated

580-511: A non- thesis degree. The MSF program, typically, prepares graduates for careers in corporate finance , investment banking and investment management. The core curriculum is thus focused on managerial finance , corporate finance and investment analysis . These topics are usually preceded by more fundamental coursework in economics , ( managerial ) accounting , and "quantitative methods" (usually time value of money and business statistics ). In many programs, these fundamental topics are

638-586: A prerequisite for admission or assumed as known, and if part of the curriculum, students with appropriate background may be exempt from these. The program usually concludes with coursework in advanced topics — where several areas are integrated or applied — such as portfolio management , financial modeling , mergers and acquisitions , real options , and lately Fintech ; in some programs quantitative finance , analytics, and managerial economics may also be offered as advanced courses. The M.Fin / MSc prepares graduates for more technical roles, and thus "focuses on

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696-625: A primary source of income for many fintech businesses, particularly payment processors and cryptocurrency exchanges. These companies typically charge a percentage of each processed transaction. Some companies have expanded this model to include premium fees for services like instant payouts, catering to merchants who require immediate access to funds. Interchange fees represent another significant revenue stream, particularly for firms offering payment cards. Subscription and freemium models allow companies to offer basic services at no cost while charging for advanced features or premium tiers. This approach

754-596: A profound impact on the fintech industry, accelerating the adoption of digital financial services and highlighting the importance of technology in ensuring the resilience and accessibility of financial systems. As lockdowns and social distancing measures forced businesses and consumers to rely more heavily on digital channels, fintech solutions experienced a surge in demand. Mobile-first fintech applications saw unprecedented growth during this period. Many trading platforms reported significant increases in new user accounts, with some seeing millions of new funded accounts added in

812-671: A regulatory gray area. While PFOF allows for commission-free trades, potentially benefiting retail investors, it has faced scrutiny due to concerns about conflicts of interest and best execution practices. As fintech companies seek to disrupt traditional financial services , some have been criticized for prioritizing growth over compliance , security, and consumer protection . In a notable controversy, cryptocurrency exchange FTX collapsed in November 2022, facing accusations of deceptive practices, improper handling of client assets, and insufficient risk controls. FTX founder Sam Bankman-Fried

870-499: A significant leap forward from the traditional open outcry system used in stock exchanges. Two years later, the founding of the SWIFT (Society for Worldwide Interbank Financial Telecommunication) standardized and secured communication between financial institutions globally. SWIFT's messaging system became the global standard for international money and security transfers. The introduction of electronic fund transfer systems, such as

928-589: A significant percentage of the CFA Program "Candidate Body of Knowledge" into their degree programs; and the degree title may reflect this: "Master in Financial Analysis" or similar. In general though, the CFA program is focused on portfolio management and investment analysis , and provides more depth in these areas than the standard Finance Masters, whereas for other areas of finance the CFA coverage

986-504: A startup investment company established by former executives of Computer Control Company , aimed at providing venture capital and industry expertise to startups in the financial technology industry. However, the term didn't gain popularity until the early 1990s when Citicorp Chairman John Reed used it to describe the Financial Services Technology Consortium. This project, initiated by Citigroup ,

1044-452: A wide range of financial services. These include digital banking , mobile payments and digital wallets , peer-to-peer lending platforms, robo-advisors and algorithmic trading , insurtech , blockchain and cryptocurrency , regulatory technology, and crowdfunding platforms. The late 19th century laid the groundwork for early fintech with the development of the telegraph and transatlantic cable systems. These innovations transformed

1102-571: Is a professional who prepares financial plans here. Financial management systems are the software and technology used by organizations to connect, store, and report on assets, income, and expenses. Here, the discipline relies on a range of products, from spreadsheets (invariably as a starting point, and frequently in total ) through commercial EPM and BI tools, often BusinessObjects ( SAP ), OBI EE ( Oracle ), Cognos ( IBM ), and Power BI ( Microsoft ). See Financial modeling § Accounting for discussion. Fintech Fintech ,

1160-405: Is common among digital banks and financial management platforms. In the business-to-business (B2B) sector, usage-based pricing is prevalent, especially for API services. Fintech infrastructure providers often charge based on the volume of API calls or transactions processed, enabling other businesses to access specialized financial services without developing them internally. Interest-based revenue

1218-935: Is crucial for many fintech companies, particularly in the banking and lending sectors. Digital banks and investment platforms typically earn interest on customer deposits and cash balances. Lending platforms often combine interest revenue with loan sales, selling portions of their loan portfolios to other institutions or investors. Data-driven revenue models, while potentially lucrative, have faced increasing scrutiny and regulation. Some firms engage in data monetization, selling aggregated or anonymized user data to third parties. However, this practice has raised privacy concerns and regulatory challenges. A less controversial approach involves leveraging user data for targeted advertising and lead generation, earning revenue through product recommendations and referral fees while providing free services to users. Some revenue models, such as payment for order flow (PFOF) used by certain brokerage firms, occupy

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1276-620: Is in less depth. Likewise, several programs have curricula aligned with the FRM / PRM , or the CAIA (note that the so-called " Indian C.F.A. " is, in fact, a master's degree). A further distinction — as regards all such designations — is that (most) Masters programs include practice on, for example, the Bloomberg Terminal , and in building advanced financial models , while "hands on" training of this sort will not (typically) be included in

1334-504: Is more diverse, covering general aspects of business , such as human resource management and operations management . At the same time, an MBA without a specialization in finance will not have covered many of the topics dealt with in the MSF (breadth), and, often even where there is specialization, those areas that are covered may be in less depth (certainly as regards the M.Fin). MBA candidates will sometimes "dual major" with an MBA/MSF — certain universities also offer this combination as

1392-580: Is on the rise, with active companies reaching 1,263 in 2024, a significant increase from 1,049 in 2022 and 450 in 2020. Nigeria leads the fintech sector, accounting for 28% of all fintech companies on the continent. The fintech industry includes a diverse range of financial services and technologies, categorized into several key areas. Many companies operate across multiple areas or create new niches that blur these distinctions. Fintech companies utilize various revenue models, often combining multiple approaches to diversify income streams. Transaction fees form

1450-417: Is taught to strengthen the theoretical underpin of the degree; however, since the emphasis is application, it is not developed.) At some universities, the more general Master of Applied Economics combines economic theory with selections from finance and data analytics. The Chartered Financial Analyst (CFA) designation is sometimes compared to a Masters in Finance. In fact, several universities have embedded

1508-430: Is the (academic) branch of finance concerned with the managerial application of financial techniques; (ii) Corporate finance is mainly concerned with the longer term capital budgeting, and typically is more relevant to large corporations. Investment management , also related, is the professional asset management of various securities (shares, bonds and other securities/assets). In the context of financial management,

1566-653: The ACH (Automated Clearing House) in the United States , facilitated faster and more efficient money transfers. The ACH network allowed for direct deposits , payroll payments, and electronic bill payments, significantly reducing the need for paper checks. The 1980s and 1990s witnessed significant developments in fintech, with the rise of digital financial services and the early stages of online banking . A major breakthrough came when Michael Bloomberg founded Innovative Market Systems (later Bloomberg L.P. ) and introduced

1624-552: The Bloomberg Terminal . This innovation revolutionized how financial professionals accessed and analyzed market data, providing real-time financial market data, analytics, and news to financial institutions worldwide. Online banking emerged in the early 1980s, with the Bank of Scotland offering the first UK online banking service called Homelink. This service allowed customers to view statements, transfer money, and pay bills using their televisions and telephones . The late 1980s saw

1682-755: The MAppFin and the MFin, with the latter requiring additional semester-time and coursework (and exclusively offering doctoral access). These programs may also differ as to entrance requirements. Programs require a bachelor's degree for admission, but many do not require that the undergraduate major be in finance, economics, or even general business. The usual requirement is a sufficient level of numeracy, often including exposure to probability / statistics and calculus . The M.Fin and MSc will often require more advanced topics such as multivariate calculus , linear algebra and differential equations ; these may also require

1740-494: The MSF advanced topics — such as real options and managerial economics — will thus also be offered, here differing as to a more technical orientation. As regards coverage of quantitative finance as compared to more specialized degrees, see below. Topics (or specializations ) in data science , machine learning and business analytics are becoming common. The MSF-M.Fin distinction is not absolute: some MSF programs, although general in coverage, are "quantitatively rigorous" or offer

1798-475: The MSF, while for the M.Fin / MSc the requirements may be identical. A Master of Financial Economics focuses on theoretical finance, and on developing models and theory. The overlap with the M.Fin / MSc, then, as with the MQF, is often substantial. As regards the MSF, on the other hand, although the two programs do differ in the weight assigned to theory, there is some overlap: firstly, some MSF curricula do include

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1856-534: The MSF-M.Fin spectrum in terms of available specializations and corresponding coursework; it differs in that it is "for and by practitioners" and therefore "blends... finance theory with industry practice", as appropriate to the specialization. Similar to the MSc, programs are sometimes specifically focused on Financial Planning or Banking, for example, as opposed to more general coverage of finance. Some universities offer both

1914-538: The challenges posed by the rapidly changing environment, offering innovative solutions for remote banking, contactless payments, and digital lending. During this period, venture capital valuations for fintech companies soared, driven by low interest rates and a booming stock market . The surge in fintech investments was marked by significant capital inflows, leading to higher valuations and more frequent exits via IPOs and SPACs . Several prominent fintech companies achieved record-breaking valuations, further underscoring

1972-577: The credit card industry. The 1960s and 1970s marked the beginning of the shift from analog to digital finance, with several groundbreaking developments shaping the future of financial technology. In 1967, Barclays introduced the world's first ATM in London , revolutionizing access to cash and basic banking services. Inspired by vending machines , the ATM marked a significant step towards self-service banking. Fintech infrastructure continued to evolve with

2030-756: The degree as a whole focused on, for example, financial management, behavioral finance , Islamic finance , personal finance / financial planning , or wealth management . As mentioned, these degrees may be specifically titled, e.g.: MSc in Investment Management, Master of Financial Planning, MSc Financial Management, Masters in Corporate Finance, and MS in Fintech . ERM and Applied Risk Management degrees may be offered here, while more technical / mathematical programs are usually through an MQF or similar; see below. The MAppFin spans

2088-473: The development of EDI (Electronic Data Interchange) standards, allowing businesses to exchange financial documents electronically and streamlining B2B (business-to-business) transactions. A significant milestone in consumer digital banking came in 1994 when Stanford Federal Credit Union launched the first Internet banking website. This service initially allowed members to check account balances online, with bill pay functionality added in 1997. However, it

2146-491: The early 2000s, gained significant traction in the post-crisis era. This model expanded beyond its initial "rent-a-charter" concept, evolving into more comprehensive partnerships between traditional banks and fintech companies. These collaborations allowed for rapid innovation and market entry, as fintechs leveraged the regulatory compliance and infrastructure of established banks while bringing their own technological expertise and customer-centric approaches. This further accelerated

2204-539: The early months of the pandemic. Similarly, payment and money transfer apps experienced substantial user growth, with some platforms more than doubling their monthly active users over a three-year period, indicating a massive shift towards digital financial services. The events of 2020 also exposed the limitations of traditional financial institutions in meeting the needs of consumers and businesses in times of crisis. fintech companies, with their agile and technology-driven business models, were better positioned to respond to

2262-532: The efficient and effective day-to-day management of funds, and thus overlaps treasury management . It is also involved with long term strategic financial management , focused on i.a. capital structure management, including capital raising, capital budgeting (capital allocation between business units or products), and dividend policy ; these latter, in large corporates, being more the domain of " corporate finance ." Specific tasks: Two areas of finance directly overlap financial management: (i) Managerial finance

2320-612: The establishment of the Inter-bank Computer Bureau in the UK in 1968. This development laid the groundwork for the country's first automated clearing house system, eventually evolving into BACS (Bankers' Automated Clearing Services) to facilitate electronic funds transfers between banks. The world of securities trading was transformed in 1971 with the establishment of NASDAQ , the world's first digital stock exchange . NASDAQ's electronic quotation system represented

2378-439: The fintech landscape continued to evolve, new payment processing companies entered the market, offering developer-friendly APIs that dramatically simplified online payment integration. By lowering the barriers to entry for e-commerce and online financial services, these companies played a crucial role in enabling the growth of new fintech startups and driving innovation in the sector. The partner banking model, which emerged in

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2436-469: The first instances of electronic money movement. The 1950s ushered in a new era of consumer financial services. Diners Club International introduced the first universal credit card in 1950, a pivotal moment that would reshape consumer spending and credit. This innovation paved the way for the launch of American Express cards in 1958 and the BankAmericard (later Visa) in 1959, further expanding

2494-450: The foundation for future digital currencies. The invention of Bitcoin in 2008 by an anonymous creator using the pseudonym Satoshi Nakamoto marked a turning point in the evolution of digital currencies and decentralized finance . Bitcoin's innovative use of blockchain technology sparked a wave of development in the field of cryptocurrencies , opening up new possibilities for secure, transparent, and decentralized financial systems. As

2552-511: The function sits with treasury; usually the management of the various short-term financial legal instruments (contractual duties, obligations, or rights) appropriate to the company's cash- and liquidity management requirements. See Treasury management § Functions . The term "financial management" refers to a company's financial strategy, while personal finance or financial life management refers to an individual's management strategy. A financial planner , or personal financial planner,

2610-589: The growing consumer demand for convenient, secure, and user-friendly payment solutions. This period also saw the rise of peer-to-peer (P2P) payment applications. These platforms revolutionized how individuals transfer money, enabling quick and easy transactions between users. By allowing fast, direct transfers through mobile devices, P2P payment apps significantly reduced the friction in personal financial transactions, making it simpler for people to split bills, share costs, or send money to friends and family. The global COVID-19 pandemic , which began in early 2020, had

2668-586: The growth of numerous fintech companies. The 2008 global financial crisis served as a catalyst for the rapid growth of the fintech industry, as declining trust in traditional financial institutions created opportunities for innovative, technology-driven solutions. The early days of the post-crisis era saw the emergence of digital currencies, with e-Gold serving as a precursor to the development of Bitcoin . While e-Gold, which allowed users to create accounts denominated in grams of gold and enable instant transfers, ultimately faced legal challenges and closure, it laid

2726-437: The growth of the fintech sector, enabling the proliferation of digital-first financial services. The maturation of this model paved the way for the rise of neobanks , which challenged traditional banking paradigms by offering fully digital experiences, redefining customer expectations in the banking sector. The increasing adoption of smartphones drove the development of mobile-first fintech solutions. Square's introduction of

2784-421: The latter Master of Commerce is often theory-centric, placing less emphasis on practice; at the same time, notwithstanding its foundational courses in business, it often shares the same electives as the MFin. As above, some MSF and all M.Fin programs overlap with degrees in financial engineering , computational finance and mathematical finance ; see Master of Quantitative Finance (MQF). Note, however, that

2842-507: The objectives of the enterprise are achieved. Financial managers (FM) are specialized professionals directly reporting to senior management , often the financial director (FD); the function is seen as 'staff' , and not 'line' . Financial management is generally concerned with short term working capital management , focusing on current assets and current liabilities , and managing fluctuations in foreign currency and product cycles, often through hedging . The function also entails

2900-435: The other hand, cover these topics in a substantively mathematical fashion, and the treatment is often identical. The distinction here though, is that these place relatively more emphasis on financial theory than the MQF, and also allow for electives outside of quantitative finance; at the same time, their range of quantitative electives is often smaller. Entrance requirements to the MQF are significantly more mathematical than for

2958-503: The sector's growth and investor confidence. The shift towards digital financial services during this period also accelerated the adoption of blockchain technology and cryptocurrencies. As central banks around the world explored the possibility of issuing digital currencies , the interest in decentralized finance and non-fungible tokens grew, opening up new avenues for innovation in the fintech sector. The fintech landscape in Africa

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3016-409: The theory and practice of finance" with a "strong emphasis on financial economics in addition to financial engineering and computational methods ." The MSF core topics are (often) also covered, although in (substantially) less detail. Elective work includes specific topics in quantitative finance and computational finance , but also in corporate finance , private equity and the like; several of

3074-570: The transmission of financial information across borders, enabling faster and more efficient communication between financial institutions. A significant milestone in electronic money movement came with the establishment of the Fedwire Funds Service by the Federal Reserve Banks in 1918. This early electronic funds transfer system used telegraph lines to facilitate secure transfers between member banks, marking one of

3132-424: The treatment of any common topics — usually financial modeling , derivatives and risk management — will differ as to level of detail and approach. The MSF deals with these topics conceptually, as opposed to technically, and the overlap is therefore slight: although practical, these topics are too technical for a generalist finance degree, and the exposure will be limited to the generalist level. The M.Fin / MSc, on

3190-496: The viability of digital payment solutions and paved the way for numerous subsequent fintech startups. The early 2000s also saw the emergence of innovative business models in the financial services industry. WebBank, established in 1997, began offering a "rent-a-charter" model in 2005, providing the necessary banking infrastructure and regulatory compliance for fintech startups to offer banking services without obtaining their own charters. This model would later prove crucial in enabling

3248-659: Was designed to promote technological cooperation in the financial sector, marking a pivotal moment in the industry's collaborative approach to innovation. The fintech ecosystem includes various types of companies. While startups developing new financial technologies or services are often associated with fintech, the sector also encompasses established technology companies expanding into financial services and traditional financial institutions adopting new technologies. This diverse landscape has led to innovations across multiple financial sectors, including banking , insurance , investment , and payment systems . Fintech applications span

3306-402: Was not until 1999 that the first state-chartered, FDIC -insured institution operating primarily online was established. First Internet Bank, founded by David Becker, marked a new era in online-only banking. The late 1990s and early 2000s marked a significant turning point in the evolution of financial technology, as numerous innovations emerged during the dot-com boom . One notable development

3364-429: Was the rise of online trading platforms, with E-Trade , founded in 1982, leading the charge. In 1992, E-Trade became one of the first financial services companies to offer online trading to consumers, revolutionizing the way individuals interacted with the stock market . Another pivotal moment was the founding of PayPal in 1998. PayPal's success in creating a secure and user-friendly online payment system demonstrated

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