28.5.1. Challenges

Try these first

1. 1.

   What does FinTech stand for?

   Hint

   Think of the types of technology used in finance.

2. 2.

   Name one challenge that traditional banks face today.

   Hint

   Consider what makes FinTech attractive.

3. 3.

   What is a significant challenge traditional banks face due to FinTech competitors?

   • Lower fees
   • Increased regulation
   • Larger branch networks

   Hint

   Consider cost advantages.

4. 4.

   True or False: Cybersecurity risks are less concerning for traditional banks compared to digital FinTech companies.

   • True
   • False

   Hint

   Think about common vulnerabilities.

5. 5.

   If a new FinTech startup launches a service that heavily automates loan applications, what strategies should a traditional bank implement to counter this innovation?

   Hint

   Consider customer interface improvements.

6. 6.

   What policies could a bank establish to protect against cybersecurity threats?

   Hint

   Think about both preventative and reactive measures.