For several last years, society at large faced various challenges, like the COVID-19 pandemic, the situation in Ukraine, elevating inflation, etc. But all these episodes are subordinated to the global fundamental trend of the digital transformation of society. New innovative technologies continue to come into our life as a result of the ongoing developments of technologies, no matter whether COVID-19 happened or not. The encountered challenges may just speed up or slow down this digitalization process, but they cannot stop it.
Extracting value from data is a core of the digitalization process. Computers can go beyond humans' ability of data analysis. Where a human sees just useless random numbers, computers can find patterns, reveal data structures and as a result add value through advanced data processing. Digitalization enables making more efficient decisions, achieving more productive allocation of resources, and introducing new services.
The availability of massive datasets makes finance special in comparison with other industries. Some examples of financial data include market data (aggregated and instrument-specific like prices, volumes, orders, etc.), corporate data (company fundamentals like assets, liabilities, equity, income, expenses, cash flow), payments data (wire transfers, cards transactions, etc.), macroeconomic data (interest rates, FX rates, GDP, inflation). In addition to mentioned structured data published by exchanges companies, governments and other information providers, computers can extract relevant financial data from nonstructured sources like media publications.
Historically financial services are provided by dedicated financial intermediaries. The intermediaries play several important roles and, in particular, they are holders of records that serve as the sole source of data for financial asset ownership. Digital innovations disrupt this paradigm. An alternative solution based on distributed ledger was proposed. Decentralized finance is an emerging financial technology that challenges the current centralized banking system.
Following the trend of digital transformation in finance, the focus of the MSc Financial Services Programme at CIIM has been adjusted to innovative digital finance.
A new core course about FinTech companies was introduced. The course provides an understanding of what is FinTech and how it changes the financial system, and what technologies FinTech companies use to innovate.
The MSc Financial Services Programme ensures customized learning through three tracks:
• FinTech Track
• Financial Services Track
• Banking & Investments Track
Among the elective courses specialised in innovations, the following shall be mentioned:
• Digital Transformation of Businesses & Organizations
• Blockchain and Applications
• Regulation of Innovative Financial Technologies
• Digital Business Tools and Digital Business Development
• Behavioural Finance
• ESG: Environmental, Social & Corporate Governance
More information on how the MSc Financial Services Programme supports the digital transformation of finance in Cyprus by empowering students with in-depth knowledge and business-ready skills related to classical and innovative digital finance can be found at www.ciim.ac.cy.
Andrey Afanasiev
Associate Professor of Finance and Risk Management, and the Director of the MSc in Financial Services at CIIM - Cyprus International Institute of Management.
