Title:               FinTech and Sustainable Finance

Instructors:  Gregory James -gregory.james@dmu.ac.uk

Credits (CFU): 2 CFU

Lectures: 16 hours 

Homework: 34 hours

Period Taught:  April 2025

Course Description 

First, the module will examine the latest developments in financial technology, relating such developments to core functions and processes in the sector such as principles of financial intermediation, regulations. Students will critically assess developments such as cryptocurrencies and evaluate the implications of differing technological approaches. In considering the wider implications for society of new technologies (such as privacy concerns) students will develop a critical view of the future prospects for the implementation, benefits and drawbacks of what is often referred to as “Fintech” and associated topics such as Insuretech and Regtech. Second, the module will introduce students to the topic of sustainable finance and its potential contribution to a sustainable economy in the context of climate change and the transition to a low-carbon economy. Specifically, the module will support students in understanding how climate and other environmental risks create potential financial risks in banking and capital markets and analyses the role of financial actors in driving and potentially mitigating these risks. Students will be exposed to both traditional and alternative risk management approaches and investment theory frameworks used to process and quantify these risks, as well as a range of case studies on the role and impact of institutional investors, banks, financial supervisory authorities and governments in aligning financial markets with climate and environmental goals.

Indicative Content

• Introduction to Techs: FinTech, InsurTech, RegTech

• Blockchain and Digital assets: Cryptocurrency, Bitcoin, Ethereum, etc.
  Robot advisors
  Decentralised Finance and financial inclusion
  FinTech regulation
  Global and regional perspectives on FinTech adoption
  The landscape of sustainable finance and the relationship to climate resilience

• Valuation of long run risks and the impact of subjective discount rates
  The public sector investment problem, how to understand return on climate change
  investment
  Green bonds and investment in infrastructure protection. 

• Private sector investment and insurance
  Environmental valuations and investment
  Market mechanisms to address environmental externalities
  Global carbon markets, cap and trade (EU emissions trading, carbon

• offsets/sequestration)
  Adaptation financing (blockchain verification)
  Climate and disaster resilience financing
  Composite indicators (ecological footprints) to guide investment
  
  Learning outcomes

Students will be able to:

Critically evaluate theories on the financial markets and intermediation and relate these to developments in FinTech and analyse the implications for FinTech developments within financial markets intermediation and related processes such as payments services.

Critically analyse current innovations, synthesise perspectives and develop views on potential development paths for FinTech.

Critically appraise the range of approaches in environmental risk modelling at physical asset, company, equity, credit, portfolio, and financial market level as well as the range of financial policy instruments and initiatives and their potential with regard to integrating environmental constraints in financial policy and supervisory framework.