Financial Services in the Twenty-First Century: The Present System and Future Developments in Fintech and Financial Innovation

Contents
List of Figures
Part I: Financial Services: Public Framework and Relationship to Capital and Income
	1: Introduction
		Introduction
		Bibliography
	2: Essential History and Fundamental Purposes
		Introduction
			The United Nations
			The International Court of Justice
			The Bank of International Settlements
		The Bretton Woods System and Institutions
			The International Monetary Fund
			The World Bank
			The World Trade Organization
		Conclusion
		Questions for Students
		Bibliography
	3: The Financial System
		Introduction
		Mapping the UK Financial System
		Conclusion
		Questions
		Bibliography
	4: Capital in the Twenty-First Century
		Introduction
		Role of Financial Sector in Income Inequality
		Conclusion
		Questions
		Appendix
			Income Inequality in the US
		Bibliography
Part II: The Conventional Paradigm: Questioned
	5: The Conventional Narrative: Deconstructed
		Introduction
		The Flawed “Principal Conclusion”: Exceptions
			Porter’s Competitive Advantage of Nations
			Microfinance
			Venture Capital
			Non-finance Factors of Economic Growth
			Overview and Data
		Misuse of the Financial System
		Conclusion
		Questions
		Appendix
		Bibliography
	6: Commercial Banks Create Money Out of Nothing
		Introduction
			Restraints on Money Creation
			Seigniorage or Making Money from Money
		Conclusion
		Questions
		Bibliography
	7: Money
		Introduction
			The Sovereign Definition
			The Metallic Definition
			The Trust Definition
			The Fiat Definition
			The Electronic Definition
			The Digital Definition
			“Money as Energy Model”
			The Rise of Digital Money: A Consolidated Construct and Taxonomy
		Conclusion
		Questions
		Bibliography
Part III: Technologies Influencing Financial Services
	8: The Genesis Files
		Introduction
		David Chaum
			The “Non-private” Digital Signature Scheme
			The Solution: “Blind Signatures” and “DigiCash”
			The Mechanics of eCash
		Adam Back
		Nick Szabo
		Wei Dai’s B-Money
		Conclusion
		Questions
		Bibliography
	9: Cryptography
		Introduction
			Historical Symmetric Ciphers
			The Caesar Cipher
			Modular Arithmetic: An Essential Detour
		Modern Cryptography
			Symmetric Key Encryption
			Lester Hill
			Claude E. Shannon
			Horst Feistel
		Architecture of Modern Cryptography
			Symmetric Cryptography
			Problem: Lack of Secure Key Exchange
			The Diffie-Hellman-Merkle Key Exchange Scheme
			Public Key Cryptography: Asymmetric Key
		Digital Signatures
		Hashes
		Global System for Mobile
		Conclusion
		Questions
		Bibliography
	10: FinTech
		Introduction
			Financial Instability: The Norm
			Financial Services: An Elitist Club
			Payment Networks: A Study in Malfunction
			Lending: The Universe of Multiple Monopolies
			Mobile Phone Technology
		Causes of FinTech Expansion
		Definition
		First Principles
		Framework
		Changing Financial Systems Architecture
			Case Study in International Payments: TransferWise
			Case Study: Starling Bank
			Case Study: P2P Lending
		Case Study: Ripple6
		Structural Changes in the Financial Services Industry
		Revenue Migration
		Structural Changes in the Financial Services Industry
		Conclusion
		Questions
		Use Case
			Payment Systems
		Bibliography
	11: Distributed Ledger Technology
		Introduction
		The Cambridge Report
			Essential Terminology
			The Cambridge Framework
			Actors Within the DLT System
			Layer Interdependence
			What Is Decentralisation?
		Use Case: Bitcoin
			Satoshi Nakamoto’s Problem and Solution
		Application of Cambridge Report DLT Framework to Bitcoin
			The Protocol Layer
			The Network Layer
			The Application Layer
		Mechanics of the Bitcoin Network
			The Coin
		Architecture of the Bitcoin Blockchain
			Mining Difficulty
			Bitcoin Network: Vulnerability
		Ethereum
			Ethereum’s Proof of Work
			Ethereum 2.0 (Serenity)
			Hyperledger
		Use Case: Bank Loan
		Use Case: Supply Chain Management
		Conclusion
		Exercises 1: Merkle Trees
		Exercise 2: Use Case for Hyperledger and/or Blockchain
		Bibliography
	12: Artificial Intelligence
		Introduction
		Machine Learning
		Supervised Learning
		Semi-supervised Learning
		Unsupervised Learning
		Reinforcement Learning
		Deep Learning
		Natural Language Processing
		Applying AI to Markets: Algorithmic Trading
		The Efficient Markets Hypothesis
		Behavioural Finance: Flaw in the Efficient Market Hypothesis Theory
		Automated Trading Strategies
		Origin of Rules Trading
		Introduction to Modelling: Algorithmic Trading
		A Valid Model
		Chatbots
		Conclusion
		Appendix
			Fundamental Analysis
			Technical Analysis
		Questions
		Bibliography
			Useful Links
			Popular Mechanics
			Machine Learning (Towards Data Science)
Part IV: The Future of Financial Services
	13: BRICS
		Introduction
		G7
		G20
		BRICS Inter Se
		Conclusion
		Questions
		Appendix
		Bibliography
	14: Modern Monetary Policy
		Introduction
		The “Six” Pernicious Myths
		The Real Crises and How They Are Managed
			Conventional Monetary Policy
			Causes of Inflation: Two Models
		Modern Monetary Policy: Explained
		Conclusion
		Questions
		Bibliography
	15: Impact of FinTech: A Prediction
		Introduction
		The Dream Vision
		The Reality
		FinTech’s Landscape
			Select FinTech Banks: Lack of Universality
		The Future Bank: Planet Mars
		Conclusion
		Questions
		Bibliography
	16: Conclusion
		Introduction
		Bibliography
Index