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BANK 1005 · Digital Banking, AI, and Financial Technology

Led by Digital Banking & AI Simulacrum

4 modules 4 units Banking & Finance Updated 6 days ago

Digital banking and AI from the digital evolution of banking through products and models, technology risk, and regulation in the digital age.

The Digital Evolutio…1Digital Systems, Pro…2Technology Risk in A…3Regulation and Profe…4
  1. Module 1

    The Digital Evolution of Banking

    Led by Digital Banking & AI Simulacrum

    The question

    Banking has been digital for decades — but the pace and nature of digital transformation have changed fundamentally. Legacy systems (built in the 1970s-90s) coexist with cloud-native platforms; incumbent banks compete with digital-only challengers; and the line between banking and technology continues to blur. This unit examines the scope and trajectory of digital transformation in banking.

    Outcome

    The student can describe the evolution of digital banking systems, distinguish between types of digital banking institutions, assess the strategic imp

    Sub-units

    1. ○ 1.1 Describe legacy and de novo systems used to support typical banking functions.
    2. ○ 1.2 Explain the strategic considerations in assessing which technologies to adopt.
    3. ○ 1.3 Describe the different types of institutions (banks and non-banks) that digital and AI transformation has affected.
    4. ○ 1.4 Explain the key impacts of digital systems on banks.
    5. ○ 1.5 Explain the key impacts of digital banking for bank customers.
    6. ○ 1.6 Describe key trends in digital evolution. • Evolution and revolution of digital and AI technologies within banking • Tech solutions for existing bank functions • Strategic aspects of which technologies to adopt, including some simple frameworks and
  2. Module 2

    Digital Systems, Products, and Models in Banking

    Led by Digital Banking & AI Simulacrum

    The question

    Digital technology has transformed every layer of banking — payments, lending, investment, customer onboarding, compliance, and the back office. This unit examines the specific digital products and delivery models operating in banking markets today, from mobile payments and open banking to blockchain, cryptocurrencies, and the impact of digital systems on sustainability.

    Outcome

    The student can describe a range of digital banking products and delivery models, explain how digital systems impact banking operations and sustainabi

    Sub-units

    1. ○ 2.1 Explain the various digital payment services, and the mechanisms that allow them to exist.
    2. ○ 2.2 Describe how digital systems impact on sustainability and the environment.
    3. ○ 2.3 Analyse how digital systems impact the operational and market infrastructure of traditional banking.
    4. ○ 2.4 Explain how banks use digital systems across their operations.
    5. ○ 2.5 Describe Blockchain, cryptocurrencies and crypto assets. • Payment services (including multi-currency), and Electronic Money Institutions (EMIs) • Digital products and services and the environment • Disintermediation / non-bank lending • Blockchain
  3. Module 3

    Technology Risk in AI and Digital Banking

    Led by Digital Banking & AI Simulacrum

    The question

    Every digital opportunity carries a digital risk. Cybersecurity threats, data privacy breaches, algorithmic bias, operational resilience failures, and the erosion of customer trust are the dark side of digital transformation. This unit examines the technology-specific risks that banks face when adopting AI and digital systems, and how these risks are managed.

    Outcome

    The student can identify and assess the key technology risks in AI and digital banking, explain the cybersecurity threat landscape for banks, evaluate

    Sub-units

    1. ○ 3.1 Explain the risks specific to adopting and using new technologies in banking, including machine learning and AI.
    2. ○ 3.2 Describe key threats to cyber-security for banks and consumers.
    3. ○ 3.3 Describe the impact of AI and digital banking on trust formation and customer satisfaction.
    4. ○ 3.4 Explain how Artificial Intelligence can aid decision-making and risk management.
    5. ○ 3.5 Explain the development of brand propositions in digital banking and their impact on trust and customer satisfaction. • Operation of chatbots and other technology-enabled systems in bank-customer interactions • Machine learning in analysing risk fac
  4. Module 4

    Regulation and Professional Standards in Digital Banking

    Led by Digital Banking & AI Simulacrum

    The question

    Digital banking is not unregulated banking. Regulators worldwide are grappling with how to oversee AI-driven decisions, protect consumer data, ensure operational resilience, and maintain financial stability in an increasingly digital financial system. This unit examines the regulatory landscape for digital and AI banking, and the professional standards expected of banking practitioners in the digital age.

    Outcome

    The student can describe the regulatory framework for digital and AI banking, explain data protection requirements, assess operational resilience expe

    Sub-units

    1. ○ 4.1 Explain the regulatory provisions designed to allow new digital banks to come to the market.
    2. ○ 4.2 Explain the key regulatory provisions relating to AI and digital banking.
    3. ○ 4.3 Explain the regulation of cryptocurrencies.
    4. ○ 4.4 Assess the professional and ethical considerations involved in AI and digital banking. • Open banking • PSD II • Regulatory sandbox • RegTech relevance • Regulation of cryptocurrency • Ethical issues, e.g., agency, accountability and responsibility.