Managing Digital Banking & Fintech (2235.YR.006245.1)

General information

Type:	OPT	Curs:	2	Period:	S semester
ECTS Credits:	3 ECTS

Teaching Staff:

Group	Teacher	Department	Language
Year 2	Xavier Busquets Carretero	Operaciones, Innovación y Data Sciences	ENG

Digital disruption is occurring at every level in the banking industry. New digital
technologies (Platforms, Cloud, Big Data and Artificial Intelligence, Blockchain, mobile
and user experiences) boost new competition (Fintech, Insurtech, new ecosystems) to
heightened customer expectations, hence incumbent banks have become increasingly
vulnerable. Banks must now think in new and innovative ways, or they are facing the risk
to become a mere back-office utility. A number of studies show that different business
models could impact up to 80% of existing bank revenues by 2023. How to establish (1)
a digital agenda, in case of incumbents and/or (2) create value in a fintech? In fact, the
growth of the fintech market has risen on average from 16% in 2015 to 33% in 2017.
Several types of banks have transformed existing business models to become more
relevant to their customers, and access long-term and sustained revenue pools.
However, to address digital disruption and implement a digital transformation agenda
that enables banks to be relevant at all times, with better understanding of customer
experiences, but also understanding new banking ecosystems, new ways to calculate
risks and banking products, creating new banking experiences, and managing a hybrid
workforce integrating people and Artificial Intelligence. Moreover, Global banks need to
manage investments in fintech to provide clients with integrated services. This means
that banks, in order to tackle to digital transformation, require to be re-thought.

OBJECTIVES
Upon completion of this elective, students will be able to
- Understand what is a bank; and the evolving role of digital technologies
- Understand the role of digital platforms and its role of different types of fintech
(payments, lending, capital, risks management, insurance and novo-banks)
- Learn how banks can pursue opportunities and confront challenges in the
complex digital global marketplace
- Develop Case Studies regarding best practices in the field

COMPETENCIES
Participants in this course will develop these competencies:
- New vision of innovative management
- System thinking
- Self-awareness
- Integrated problem-solving
- Team-work

1. Session 1: What is a bank. The role of digital technologies What is a bank? What is money? The bank¿s digital infrastructures and its value Understanding front-office, back-office and risk management Learning about the stakeholders involved

2. Session 2: Global Banking and Opn Understanding the role of digital technology Understanding cultural gaps Understanding compliance and regulation Open banking

3. Session 3: Fintech (1) Payment systems, moneyless and investments Digital platforms and payment systems. The notion of convergence Understanding the moneyless paradigm Investment industry: personal finance management and robo-advisors

4. Session 4: Fintech (2) Capital markets and risk management systems Designing a capital market fintech (design-thinking) Understanding markets and stakeholders Understanding the challenge of growth Understanding risk management

5. Session 5: Blockchain and new digital currencies What is blockchain Blockchain in the finance industry New digital currencies and Initial Coin Offerings (ICOs) Understanding new banking and industrial ecosystems and alliances Towards new institutions

6. Session 6: The role of Cognitive Systems in Banking What is a cognitive system and Big Data Understanding main impact on product development and customer processes Understanding systemic risks

7. Session 7: Digital Transformation (1) Scenarios in uncertainty Understanding the differences between incumbents and fintechs Understanding potential scenarios Understanding business model innovation and the role of digital technology

8. Session 8: Digital Transformation (2) Governance and Digital Journey Designing a digital Journey Understanding structural innovation: differences between architectures and processes Project prioritization Horizon design

9. Session 9: Digital transformation (3): How to invest in a Fintech Assessing the value of a fintech Different methods and tools Understanding components of a valuation

10. Session 10: The future of work and institutions Exploring the future of work in finance industry: the new deal between people and machines Exploring the future of money and banking Exploring the future role of EU institutions

This is a course is structured on 10 session (35 h teaching hours). The approach will be
based on case discussions, design thinking exercises, problem solving methods and
challenge prepation. The sessions are designed to facilitate faculty and students
discussions, forums and collective assignments. The on-site sessions will be face-toface
for ESADE students only, at the Sant Cugat Campus, there will be 10 in total,
distributed between the beginning of January and March (From Thursday January the
26th from 9.30-13.00).
The course will be divided into two modules (1) sessions 1-6 exploring banking, finchech
and new technologies; (2) sessions 7-10 will be process based in order to learn how to
manage digital transformation in banking combining previous lectures, cases and design
thinking workshops.
For Module 1, the worlkload distribution will be among:
o Lectures
o Practical sessions (case discussions, design-thinking and problem
solving) 4
For Module 2, the workload distribution will be among
o Autonomous work
o Team work (Teams will be arranged according to common interests)
o Tutorials and feedback
For module 1 there will be a brief assignment, including quizzes, short essays and
actual tools for self-assessment regarding particular aspects in sustainable
management. The module 2 will be based on a final assignment consisting of building a
digital transformation plan on a selected company or organisation, based on desk
research, publicly available information and qualitative interviews. The team work will be
guided and supervised for reference.
The attendance to on-site sessions has to be at least 80%. Students are expected to
engage actively in class discussions and are required to work on group assignments
during the sessions. Importantly, students are expected to read the course material
beforehand. Preparation has a strong influence on how interactively we can run the
course and we recommend you to allocate sufficient time to the preparatory activities.

Textbooks and other materials for reference
There is no mandatory handbook for this course. We will present an updated set of cases
and readings: compulsory materials and references that will provide a good basis for
covering the different modules. During the course, a set of optional readings will be
provided too.

BIO XAVIER BUSQUETS

Professor Busquets holds a PhD In Management Sciences, Copenhagen Business School,
CBS (2010), Master in Business Administration (MBA), ESADE (1992) and BSc
Telecomunication Engineering. Universidad Politécnica de Cataluña (UPC) (1987), Active
Learning, CPCL, Harvard Business School (2005). Javier Busquets launched (and currently
serves as Director) two new programs in 2011, the Executive Master in Digital Business
(2011-) in cooperation with SCU at Silicon Valley and several custom programs.
He served as Chair of the Department of Management Information Systems (2003-2011)
He has an extensive professional and executive experience in the Information Technology
(IT) and telecommunication industry where he served for 17 years. In 2007 and 2011 he
received an IBM Faculty Award dedicated to a research in Service Science and Innovation
in Banking. He teaches Strategy in Innovation & Emergent Technologies in the Global
Executive MBA in cooperation with Georgetown, specifically in Bangalore (India) Campus;
Executive MBA and MBA Programs.
He also teaches in a number of open & custom programs in Executive Education. He is also
author of several international awarded teaching cases and papers in international
conferences, book chapters; and journals such as Harvard Deusto Business Review,
Communications of ACM, Journal of Information Technology, European Journal of
Information Systems, Innovations (MIT Press) and Decision Support Systems among
others. He participated in the Spanish Case Report for World Economic Forum Report in
2010. He is a board member of the Sicomoro Foundation (studies on complexity) and serves
in the board of two start-ups (crowdfunding and Artificial Intelligence).

BIO ELOY NOIA

Professor Noya holds a Bachelor in Business Administration and MBA (Esade Business
School, 1993) and a Degree in Law (Universitat Oberta de Catalunya, 2006). He has a
Master in International Management (McGill University - Montreal, 1993) and an Executive
Master in Digital Business (Esade Business School, 2012). He has been enrolled in several
executive and management programs in schools such as IDEC-Universitat Pompeu Fabra
and Instituto de Empresa. He has two certifications in finance: EFA-European Financial
Advisor, and CEFA-European Financial Analyst, both obtained in the Instituto de Estudios
Financieros.
He is an academic collaborator and professor at Esade Business School from 2001, lecturing
in subjects like Finance Analysis, Financial Marketing and Digital Business Models. From
2012, he is a professor of the Department of Operations, Innovation and Data Science,
having specialized in Entrepreneurial Finance in early-stage digital projects, and Digital
Capital Markets and Fintech.
Beside the academic activity, Mr Noya's professional career has been developed in the
financial industry. From 1994 to 2012, he held executive positions in several Spanish banks
(Head of Risk at Banco Pastor; Director of International Division, Director of Marketing for
Corporates&SMEs, both at Catalunya Caixa; and Director of Marketing at the real estate
division of Catalunya Banc, being as well a member of its Board of Directors). He was a
member of the SME Council of EFMA (European Financial Management and Marketing
Association) from 2009 until 2012. In 2013 he co-founded a fintech start-up, LoanBook
Capital, which has become the leading peer-to-business lending platform in Spain. He has
been General Manager and Director of Credits and Risk of this firm. He is a regular speaker
in fintech and banking innovation forums and summits. In recent years, he has written
several articles about alternative finance, fintech and scenarios for the future banking
industry at publications such as Harvard Deusto Business Review and the Observatorio de
Divulgación Financiera. He is advisor of several start-ups and companies.

Group	Teacher	Department
Year 2	Xavier Busquets Carretero	Operaciones, Innovación y Data Sciences