Lecture 8: Flipped — Fintech Business Models
Neobanks, embedded finance, BNPL · group presentations · token allocation
Prof. Dr. Andre Guettler
Director of the Institute
Helmholtzstraße 22, Room 205
andre.guettler@uni-ulm.de
+49 731 50 31 030
Helmholtzstraße 22, Room 205
andre.guettler@uni-ulm.de
+49 731 50 31 030
Oliver Padmaperuma
Doctoral Candidate
Helmholtzstraße 22, Room 203
oliver.padmaperuma@uni-ulm.de
+49 731 50 31 036
Helmholtzstraße 22, Room 203
oliver.padmaperuma@uni-ulm.de
+49 731 50 31 036
8.1 Course objectives
- 8.1 Course objectives
- 8.2 Recap: Fintech Business Models
- 8.3 Session agenda
- 8.5 Token allocation
- 8.6 Lecturer reflection
- 8.7 Wrap-up & next steps
- Welcome to
- Course Objective
- Course at a glance (1/3)
- Course at a glance (2/3)
- Course at a glance (3/3)
- Assignments / Exams
Welcome to Emerging Technology & Finance
- This is a flipped-classroom Bachelor course: every regular lecture (odd weeks) is followed by a flipped session (even weeks) where all groups present on the same topic. There is no exam to register for — sign up on the course Moodle page by 15 October 2026 so you receive announcements and the token-allocation quiz links.
- Form a group of 4 by the end of Week 1 (Moodle sign-up sheet). Stragglers will be allocated by the lecturers.
- Grading is 100% cumulative across the 6 flipped sessions: each session = 50% peer-allocated tokens + 50% lecturer evaluation. Each group gets 20 fresh tokens every flipped week to allocate to other groups via a Moodle quiz within 5 minutes of the session ending.
- Submission per session: upload your slide PDF to Moodle before each flipped session starts. Ask questions during or right after each session — that is the preferred channel.
- Admin / studies / exam-eligibility questions go to the registrar’s office (Studiensekretariat) at studiensekretariat@uni-ulm.de.
- Course-content questions outside class: email oliver.padmaperuma@uni-ulm.de, CC andre.guettler@uni-ulm.de.
- We also recommend the student advisory service.
Course Objective
Scope
We will:
- Survey six emerging-technology modules at the cutting edge of finance: agentic AI · blockchain & DeFi · fintech business models · RegTech & cybersecurity · CBDCs
- Pair every regular lecture with a flipped session in which every group presents their angle on the topic
- Train critical evaluation, presentation, and peer-judgment skills via a transparent token-based peer-grading mechanic
- Place the technologies in a real-world business and regulatory context (PSD2/3, MiCA, EU AI Act, post-quantum standards)
We will NOT:
- Build production-grade fintech systems or trade live capital
- Cover deep technical implementations (we treat code as supplement, not core)
- Run a separate written exam or final-pitch competition — the cumulative flipped-session grade is the entire grade
Approach
Flipped-classroom alternation (12 weeks)
- Odd weeks (W1, W3, W5, W7, W9, W11): regular lecture introducing the topic
- Even weeks (W2, W4, W6, W8, W10, W12): flipped session — all groups present and allocate tokens
- Groups of 4, formed by end of Week 1
Token mechanic (the grading vehicle)
- 20 tokens per group per flipped session
- Each group allocates them to other groups, weighing insight · originality · clarity · critical depth
- Cumulative across 6 sessions = 50% of final grade · lecturer evaluation = 50%
Course at a glance (1/3)
Foundations of Digital Disruption in Financial Services
Week 1
22.10.2026
What is ‘emerging tech in finance’, how did we get here, where is it going
- Three waves of digital disruption in finance
- Today’s actors: incumbents, challengers, Big Tech, infrastructure
- Regulatory backdrop: PSD2, MiCA, EU AI Act
- Why now: structural drivers
- What this course will cover
Flipped — Digital Disruption in Financial Services
Week 2
29.10.2026
Group presentations · token allocation · discussion
- Recap of the foundations lecture
- Group presentations on digital disruption
- Token allocation & next steps
Agentic AI & LLMs in Finance
Week 3
05.11.2026
From LLMs to agents · applications · failure modes · EU AI Act
- LLMs in finance: architecture, training, capabilities
- Agentic AI: from answers to actions
- Applications: RAG, robo-advisors, AML, trading agents
- Failure modes: hallucination, drift, prompt injection
- Governance: EU AI Act and high-risk obligations
Flipped — Agentic AI & LLMs in Finance
Week 4
12.11.2026
Group presentations · token allocation · discussion
- Recap of the agentic AI lecture
- Group presentations on real LLM and agent deployments
- Token allocation & next steps
Blockchain, Crypto, DeFi & Tokenisation
Week 5
19.11.2026
From distributed ledgers to MiCA-regulated markets
- Blockchain primer: ledgers, consensus, smart contracts
- Crypto markets: BTC, ETH, stablecoins
- DeFi primitives: AMMs, lending, derivatives
- Tokenisation of real-world assets
- MiCA framework and EU enforcement
Course at a glance (2/3)
Flipped — Blockchain, Crypto, DeFi & Tokenisation
Week 6
26.11.2026
Group presentations · token allocation · discussion
- Recap of the blockchain & DeFi lecture
- Group presentations on real protocols and deployments
- Token allocation & next steps
Fintech Business Models
Week 7
03.12.2026
Neobanks, embedded finance, BNPL, Open Banking, Big Tech in finance
- Neobanks: N26, Revolut, Monzo, Chime
- Embedded finance & BaaS
- BNPL: Klarna, Affirm, regulatory pushback
- Open Banking & PSD2 outcomes
- Big Tech in finance
Flipped — Fintech Business Models
Week 8
10.12.2026
Neobanks, embedded finance, BNPL · group presentations · token allocation
- Recap of the fintech business-models lecture
- Group presentations on real companies and unit economics
- Token allocation & next steps
RegTech, Cybersecurity & Privacy-Preserving Compute
Week 9
17.12.2026
Industrialising compliance · cyber-threat landscape · ZKPs, MPC, federated learning · post-quantum
- RegTech overview: industrialising compliance
- KYC/AML automation in production
- Cybersecurity threats in finance
- Privacy-preserving compute: ZKPs, MPC, federated learning
- Post-quantum cryptography & the migration
Flipped — RegTech, Cybersecurity & Privacy-Preserving Compute
Week 10
07.01.2027
Group presentations · token allocation · discussion
- Recap of the RegTech & security lecture
- Group presentations on vendors, incidents, and emerging tech
- Token allocation & next steps
Course at a glance (3/3)
CBDCs & the Future of Money
Week 11
14.01.2027
Wholesale vs retail design · Digital Euro · e-CNY · programmable money
- What’s a CBDC: wholesale vs retail
- The Digital Euro state of play
- China’s e-CNY and small-country implementations
- Programmable money: feature, threat, or both
- Stablecoins as private money: tension with CBDCs
Flipped — CBDCs & the Future of Money
Week 12
21.01.2027
Final session · group presentations · token allocation · course wrap-up
- Recap of the CBDCs lecture
- Group presentations on real CBDC projects
- Token allocation, final standings, and course retrospective
Assignments / Exams
Flipped-Classroom Presentation Series 100% of your grade
Six in-class group presentations across six emerging-tech topics, graded cumulatively. Each session: 50% peer-allocated tokens + 50% lecturer evaluation.
Group of up to 4.
Submit by emailing oliver.padmaperuma@uni-ulm.de, CC andre.guettler@uni-ulm.de. Subject pattern: Emerging Technology & Finance_assignment-1-flipped-classroom-presentations_surname1_surname2_…
21 January 2027
8.2 Recap: Fintech Business Models
- 8.1 Course objectives
- 8.2 Recap: Fintech Business Models
- 8.3 Session agenda
- 8.5 Token allocation
- 8.6 Lecturer reflection
- 8.7 Wrap-up & next steps
- What we covered last week
- Open questions to dig into today
What we covered last week
- Neobanks — N26, Revolut, Monzo, Chime. Customer-acquisition cost vs lifetime value; the long road to profitability (Vives 2017).
- Embedded finance & BaaS — Stripe, Marqeta, Solaris, Adyen. Banking infrastructure as an API.
- BNPL — Klarna, Affirm, Block Afterpay. Subprime credit in fintech clothing, or genuine innovation?
- Open Banking & PSD2 — what data-sharing mandates actually delivered, who built on top (European Parliament and Council 2015).
- Big Tech in finance — Apple Card, Google Pay, Amazon Lending — defensive moats or offensive land-grabs? (Frost et al. 2019).
- Fintech lending — what the literature finds about FinTech vs bank credit supply (Berg, Fuster, and Puri 2022).
Open questions to dig into today
- Neobanks: profitable yet — or perpetually one funding round away?
- BNPL: real consumer innovation, or repackaged subprime lending?
- PSD2 was meant to spark Open Banking competition. Has it actually?
- Why has no European Big-Tech-style super-app emerged (vs. Alipay, WeChat, Grab)?
8.3 Session agenda
- 8.1 Course objectives
- 8.2 Recap: Fintech Business Models
- 8.3 Session agenda
- 8.5 Token allocation
- 8.6 Lecturer reflection
- 8.7 Wrap-up & next steps
- Today’s flow
- Group presentation order
- What groups present today
- Group 1 — Neobank unit economics
- Group 2 — BNPL provider
- Group 3 — Embedded finance / BaaS
- Group 4 — Big Tech in finance
- Group 5 — Super-app outside Europe
- Group 6 — Open Banking outcomes
Today’s flow
- 14:00 — Welcome & recap (5 min)
- 14:05 — Group presentations (6 min + 2 min Q&A each)
- 15:00 — Lecturer reflection (10 min)
- 15:10 — Token allocation (5 min on Moodle)
- 15:15 — Wrap-up & prep for next regular lecture (5 min)
Group presentation order
- Angle: A specific neobank’s unit economics (N26 · Revolut · Monzo · Chime)
- Slot: 14:05–14:13
- Angle: A BNPL provider (Klarna · Affirm · Afterpay) — model and regulatory pushback
- Slot: 14:13–14:21
- Angle: An embedded finance / BaaS story (Stripe · Marqeta · Solaris · Adyen)
- Slot: 14:21–14:29
- Angle: Big Tech in finance (Apple Card · Google Pay · Amazon Lending)
- Slot: 14:29–14:37
- Angle: A super-app outside Europe (Alipay · WeChat Pay · M-Pesa · Grab)
- Slot: 14:37–14:45
- Angle: Open Banking outcomes — what PSD2 actually delivered, who won
- Slot: 14:45–14:53
What groups present today
Presentation brief
6 min + 2 min Q&A. Each presentation must include:
- One specific company / product / regulation.
- Unit economics — CAC, LTV, take-rate, NIM, default rate — whichever applies. Bring numbers.
- Critical view — what could break this model? Who is already trying to break it?
- 1–2 discussion prompts.
8.4 Group presentations
Group 1 — Neobank unit economics
- Pick one. Bring: revenue per user, CAC, retention curve, the latest reported operating profit (or loss).
- The strongest version compares the neobank’s metric directly to an incumbent bank’s.
Group 2 — BNPL provider
- Pick one. Bring: take-rate from merchants, default rate among users, the regulatory action(s) since 2023.
- The strongest version answers “is this profitable on a fully-loaded credit-loss basis?”
Group 3 — Embedded finance / BaaS
- Pick one. Bring: how it makes money (transaction fees, licensing, float), who the customers are (other fintechs, retailers, gig platforms), and the regulatory pushback (e.g. BaFin & Solaris).
- The strongest version explains why a non-finance company would buy financial primitives as APIs.
Group 4 — Big Tech in finance
- Pick one. Bring: what financial service it provides, who the underlying bank is, and the strategic role (defensive moat protecting the core product vs offensive land-grab).
- The strongest version answers “why hasn’t this disrupted incumbents yet?”
Group 5 — Super-app outside Europe
- Pick one. Bring: financial-services penetration, regulatory environment, and the cultural / infrastructure preconditions that made it possible.
- The strongest version names what would have to change in Europe for a similar super-app to emerge.
Group 6 — Open Banking outcomes
- Bring: API call volumes (UK CMA data, EU comparable), names of consequential third-party providers (Plaid, TrueLayer, Tink), and the honest answer to “did PSD2 actually create competition?”
- The strongest version separates regulatory intent from measured outcome.
8.5 Token allocation
- 8.1 Course objectives
- 8.2 Recap: Fintech Business Models
- 8.3 Session agenda
- 8.5 Token allocation
- 8.6 Lecturer reflection
- 8.7 Wrap-up & next steps
- How tokens work
- Allocation rubric
- Tonight’s leaderboard
How tokens work
- 20 fresh tokens per group per session.
- Other groups only — no self-allocation. Total = 20.
- Moodle quiz opens for 5 minutes after the last presentation.
Allocation rubric
- Insight — taught you something new?
- Originality — fresh angle?
- Clarity — followable?
- Critical depth — honest appraisal?
Tonight’s leaderboard
| Group | Tokens this week | Cumulative |
|---|---|---|
| Group 1 | — | — |
| Group 2 | — | — |
| Group 3 | — | — |
| Group 4 | — | — |
| Group 5 | — | — |
| Group 6 | — | — |
- We’re now past the halfway mark — 4 sessions remain. Final standings start to shape from here.
8.6 Lecturer reflection
- 8.1 Course objectives
- 8.2 Recap: Fintech Business Models
- 8.3 Session agenda
- 8.5 Token allocation
- 8.6 Lecturer reflection
- 8.7 Wrap-up & next steps
- Standout insights & common gaps
- Concepts to revisit next regular lecture
Standout insights & common gaps
- Standouts (live-fill): groups that combined a real unit-economics number with a sharp regulatory observation.
- Common gaps (live-fill): typically — (a) headline user counts without revenue per user; (b) press-release valuations as evidence; (c) assumed regulators are static when they are decisively reshaping BNPL and BaaS.
Concepts to revisit next regular lecture
- Every business model we discussed today operates inside a compliance perimeter — KYC, AML, data protection, operational resilience. Lecture 9 zooms into that perimeter.
- The interesting governance question that emerged tonight: as fintech volumes grow, how much of the regulatory burden can / should be automated?
8.7 Wrap-up & next steps
- 8.1 Course objectives
- 8.2 Recap: Fintech Business Models
- 8.3 Session agenda
- 8.5 Token allocation
- 8.6 Lecturer reflection
- 8.7 Wrap-up & next steps
- Course at a glance (1/3)
- Course at a glance (2/3)
- Course at a glance (3/3)
- Prepare for next regular lecture
- See you next time
- References
Course at a glance (1/3)
Foundations of Digital Disruption in Financial Services
Week 1
22.10.2026
What is ‘emerging tech in finance’, how did we get here, where is it going
- Three waves of digital disruption in finance
- Today’s actors: incumbents, challengers, Big Tech, infrastructure
- Regulatory backdrop: PSD2, MiCA, EU AI Act
- Why now: structural drivers
- What this course will cover
Flipped — Digital Disruption in Financial Services
Week 2
29.10.2026
Group presentations · token allocation · discussion
- Recap of the foundations lecture
- Group presentations on digital disruption
- Token allocation & next steps
Agentic AI & LLMs in Finance
Week 3
05.11.2026
From LLMs to agents · applications · failure modes · EU AI Act
- LLMs in finance: architecture, training, capabilities
- Agentic AI: from answers to actions
- Applications: RAG, robo-advisors, AML, trading agents
- Failure modes: hallucination, drift, prompt injection
- Governance: EU AI Act and high-risk obligations
Flipped — Agentic AI & LLMs in Finance
Week 4
12.11.2026
Group presentations · token allocation · discussion
- Recap of the agentic AI lecture
- Group presentations on real LLM and agent deployments
- Token allocation & next steps
Blockchain, Crypto, DeFi & Tokenisation
Week 5
19.11.2026
From distributed ledgers to MiCA-regulated markets
- Blockchain primer: ledgers, consensus, smart contracts
- Crypto markets: BTC, ETH, stablecoins
- DeFi primitives: AMMs, lending, derivatives
- Tokenisation of real-world assets
- MiCA framework and EU enforcement
Course at a glance (2/3)
Flipped — Blockchain, Crypto, DeFi & Tokenisation
Week 6
26.11.2026
Group presentations · token allocation · discussion
- Recap of the blockchain & DeFi lecture
- Group presentations on real protocols and deployments
- Token allocation & next steps
Fintech Business Models
Week 7
03.12.2026
Neobanks, embedded finance, BNPL, Open Banking, Big Tech in finance
- Neobanks: N26, Revolut, Monzo, Chime
- Embedded finance & BaaS
- BNPL: Klarna, Affirm, regulatory pushback
- Open Banking & PSD2 outcomes
- Big Tech in finance
Flipped — Fintech Business Models
Week 8
10.12.2026
Neobanks, embedded finance, BNPL · group presentations · token allocation
- Recap of the fintech business-models lecture
- Group presentations on real companies and unit economics
- Token allocation & next steps
RegTech, Cybersecurity & Privacy-Preserving Compute
Week 9
17.12.2026
Industrialising compliance · cyber-threat landscape · ZKPs, MPC, federated learning · post-quantum
- RegTech overview: industrialising compliance
- KYC/AML automation in production
- Cybersecurity threats in finance
- Privacy-preserving compute: ZKPs, MPC, federated learning
- Post-quantum cryptography & the migration
Flipped — RegTech, Cybersecurity & Privacy-Preserving Compute
Week 10
07.01.2027
Group presentations · token allocation · discussion
- Recap of the RegTech & security lecture
- Group presentations on vendors, incidents, and emerging tech
- Token allocation & next steps
Course at a glance (3/3)
CBDCs & the Future of Money
Week 11
14.01.2027
Wholesale vs retail design · Digital Euro · e-CNY · programmable money
- What’s a CBDC: wholesale vs retail
- The Digital Euro state of play
- China’s e-CNY and small-country implementations
- Programmable money: feature, threat, or both
- Stablecoins as private money: tension with CBDCs
Flipped — CBDCs & the Future of Money
Week 12
21.01.2027
Final session · group presentations · token allocation · course wrap-up
- Recap of the CBDCs lecture
- Group presentations on real CBDC projects
- Token allocation, final standings, and course retrospective
Prepare for next regular lecture
- Skim Arner, Barberis, and Buckley (2017) (the “FinTech, RegTech” framing piece).
- Find one major cyber incident in finance from 2024–26 and read its postmortem.
- Group discussion Sunday: pick a Week-10 angle on RegTech, Cybersecurity, or Privacy-Preserving Compute.
See you next time
Reminder
- Token allocation: Moodle quiz open now — 5 minutes.
- Slide PDFs archived under Week 8.
- Lecture 9 (next Thursday, 17 December): RegTech, Cybersecurity & Privacy-Preserving Compute — the compliance perimeter and what’s emerging beyond it.
- After Lecture 9: Christmas break. Flipped session resumes 7 January 2027.
References
Arner, Douglas W., János Barberis, and Ross P. Buckley. 2017. “FinTech, RegTech, and the Reconceptualization of Financial Regulation.” Northwestern Journal of International Law & Business 37 (3): 371–413.
Berg, Tobias, Andreas Fuster, and Manju Puri. 2022. “FinTech Lending.” Annual Review of Financial Economics 14: 187–207. https://doi.org/10.1146/annurev-financial-101521-112042.
European Parliament and Council. 2015. “Directive (EU) 2015/2366 on Payment Services in the Internal Market (PSD2).” Official Journal of the European Union, L 337/35. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32015L2366.
Frost, Jon, Leonardo Gambacorta, Yi Huang, Hyun Song Shin, and Pablo Zbinden. 2019. “BigTech and the Changing Structure of Financial Intermediation.” BIS Working Paper 779. Bank for International Settlements. https://www.bis.org/publ/work779.htm.
Vives, Xavier. 2017. “The Impact of FinTech on Banking.” European Economy: Banks, Regulation, and the Real Sector, no. 2: 97–105.
Institute of Strategic Management and Finance · Ulm University