Infrastructure of FinTech
What is the basic purpose of FinTech infrastructure?
The purpose is to provide the technological and regulatory foundation that enables digital financial services—such as payments, mobile banking, and digital identity systems—to operate efficiently and securely.
What is a “digital country”?
A digital country is a nation that integrates digital technologies into government services, the economy, education, finance, and daily life to improve efficiency and accessibility.
What is digital transformation?
Digital transformation is the process of using digital technologies to improve business processes, services, and customer experiences.
What is the most well-known cryptocurrency in the world?
Bitcoin (BTC) is the most well-known and widely used cryptocurrency.
Bitcoin (BTC) is the most well-known and widely used cryptocurrency.
Because it heard humans were slow at processing digital transformations!
Which component of FinTech infrastructure ensures secure user identification?
Digital Identity (e-ID) systems, such as biometrics or electronic ID cards, ensure secure and reliable user authentication.
Which country is widely recognised as a global leader in digital governance due to its e-Residency and fully online public services?
Estonia — known for its advanced e-government, digital ID, and e-Residency programme.
How does cloud computing support digital transformation in organisations?
Cloud computing provides scalable storage, flexible computing power, and cost-efficient IT resources, enabling organizations to modernize operations, improve collaboration.
A cryptocurrency is a digital or virtual currency?
Both of them: a cryptocurrency is a digital or virtual currency secured by cryptography, typically operating on decentralized blockchain technology.
Why don’t cryptocurrencies tell secrets?
Because everything on the blockchain is already “public”!
How do cloud computing services support FinTech infrastructure?
Cloud computing provides scalable, flexible, and cost-efficient computing power, enabling FinTech companies to host applications, process large volumes of financial data, and deploy services globally without owning physical servers.
How does Singapore's “Smart Nation Initiative” contribute to making it one of the most advanced digital countries?
Singapore’s Smart Nation initiative integrates IoT, AI, national digital ID (SingPass), cashless payments, and data-driven policymaking, creating a highly connected, efficient, and citizen-centric digital ecosystem.
What is the role of data analytics in driving effective digital transformation?
Data analytics helps organizations identify customer behaviour patterns, optimise internal processes, forecast trends, and measure the impact of digital initiatives.
Why is Bitcoin often considered a “store of value”?
Bitcoin has a limited supply (21 million coins), strong security, decentralization, and resistance to inflation, which makes it comparable to digital gold and a potential long-term store of value.
Why did the blockchain refuse to lie?
Because it doesn’t forget anything!
Evaluate the role of regulatory infrastructure (such as sandboxes and digital banking licenses) in shaping FinTech development.
Regulatory infrastructure provides controlled environments and legal frameworks that allow FinTech innovation while managing risks. Sandboxes enable testing of new technologies under supervision, while digital banking licenses support market entry for new players.
Critically assess how digital countries balance rapid innovation with risks such as cybersecurity threats, digital divide, and personal data protection.
Digital countries must implement strong cybersecurity regulations, data governance laws, and digital literacy programs while promoting innovation.
Why do many digital transformation strategies fail despite strong technological investment?
Many strategies fail due to organisational resistance to change, lack of digital skills, poor leadership alignment, unclear KPIs, legacy IT systems, and the absence of a culture that supports innovation and continuous learning.
Explain the main risks associated with using stablecoins in international financial systems.
Stablecoins pose risks such as regulatory uncertainty, potential systemic contagion if large stablecoins fail, concentration of power in private issuers, and vulnerabilities related to liquidity mismatches and capital flight.
Why did the AI refuse to give the client a loan?
It didn’t have “human emotion” to risk bad decisions!