2022 Michigan Ross FinTech Report

2022 IMPACT REPORT Michigan Ross FinTech Initiative

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he constantly evolving world of the modern financial sector is an exciting and still-emerging component of business education. At the University of Michigan, our attention to financial technology is anchored by the Michigan Ross FinTech Initiative, launched in 2019 thanks to generous and visionary funding from PEAK6.

The Initiative’s success is traced back to our multi-pronged approach that combines online and in-person fintech courses, faculty research into important issues at the intersection of finance and technology, and our outreach to alumni and industry leaders who demonstrate the practical impact of the Initiative.

The Michigan Ross FinTech Initiative has made significant progress since its inception three years ago, and we are proud to be among the top business schools committed to bridging the gap between traditional business education and the growing number of skills employers are now seeking. Please read on to learn about recent impacts and upcoming activities of the Initiative in three core areas: • Education • Student Engagement & Co-Curricular Activities • Research & Industry/Policy Outreach

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EDUCATION

reparing the workforce of today and tomorrow for the growing world of fintech through education is at the heart of the FinTech Initiative. At Michigan Ross, that heart is beating amazingly strong: Classroom numbers are growing in both the online and inperson formats.

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Online Classes: Our online fintech courses, offered via the Coursera and FutureLearn platforms, currently include the following classes: The Future of Payment Technologies; Blockchain and Cryptocurrency Explained; Raising Capital: Credit Tech, Coin Offerings, and Crowdfunding; and Innovations in Investment Technology: Artificial Intelligence.

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STUDENT ENGAGEMENT & CO-CURRICULAR ACTIVITIES

inding ways of incorporating fintech education into engaging learning opportunities outside of the classroom has been a keystone of the Initiative. As you can see in this report, participation is growing in this realm, with expanding opportunities planned in the coming months.

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FinTech Challenge: The third annual FinTech Challenge, held in February 2022, featured a record participation of 230 students — including a mix of undergraduate and graduate students from Ross, the College of Engineering, and the School of Information. Nearly 50 interdisciplinary teams worked to create cryptocurrency-based ventures with both technical and financial considerations in mind.

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Speaker Conference: Among the new events planned for the 2022-23 Academic Year is a speaker conference, which will be held as part of the FinTech Challenge schedule of events.

The conference will feature speakers from a broad spectrum of industries in the FinTech space, with topics including trends and career opportunities.

New Events for Fall of 2023: The FinTech Initiative is planning a series of events, including panels and workshops, as part of the broader Business + Tech “Tech Literary Download” event.

Growth in our online fintech enrollment has exceeded expectations since being launched in January 2020. Our initial 2021 goal was to have an enrollment of 30,000 students. After beginning with a May 2020 enrollment of 11,800, word of our fintech offerings spread — and quickly. A few months later, our September 2021 enrollment hit nearly 83,000. In February 2022, more than 93,000 students were taking our courses, and by August 2022, enrollment ballooned to 120,095. This impressive number consists of 86,335 classes on Coursera (mostly U.S. students) and 33,760 on FutureLearn (mostly European students).

These numbers put us in exclusive company with top businessschool peers. And quality is matching quantity. Student ratings are excellent, with scores coming back at 4.7 out of 5. Michigan Ross will continue to explore the possibility of adding new fintech courses to its portfolio to meet ongoing student demand.

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Residential Classes: Our residential, in-person classes are also brimming with students eager to learn more about fintech. The following are current classes and their respective enrollment and waiting-list figures: •

Blockchain, Cryptocurrencies, & Other Technology Innovations • Undergraduate (FIN 428 / TO 428): Two sessions offered. 145 students enrolled; around 150 on waiting list • MBA (FIN 638 / TO 638): One session offered; 52 students enrolled; around 55 on waiting list

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Artificial Intelligence & Machine Learning in Investment Strategies - Undergraduate (FIN 427): 60 students enrolled

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Big Data in Finance - Undergraduate (FIN 342): 39 students enrolled; nine on waiting list

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Collaboration with student clubs: Fostering student engagement through multiple clubs consisting of students from across campus who are interested in fintech is a vital aspect of the Michigan Ross FinTech Initiative.

• • Michigan FinTech Club: This undergraduate student club founded in 2017 connects students interested in fintech from multiple schools and majors across campus (Ross, College of Engineering, School of Information and others).

The club has more than 300 active participants on campus and more than 1,000 registered members.

• MBA FinTech Club: This club, founded in 2018, has more than 200 registered members (current students and alumni), and partners with the other fintech clubs to bring the best fintech learning and career opportunities to MBAs. Fall 2022 events include lectures such as “Industry Verticals: Power Democratization & Next Gen UX in Finance” and “Designing Digital Payments for Disruption.”

• • Crypto Club at Ross: This new MBA club aims to educate Ross MBA students on blockchain technology and the latest trends, projects, and companies disrupting the world.

Although only recently established, the club already has 122 registered members, 98 active participants, and five officers.

Lecture Series: Over the past couple of years, we organized a webinar-lecture series on several fintech topics. These webinars drew large audiences ranging from 100 to 300 registered participants each.

FinTech Research at Ross: Several Ross faculty members and doctoral students are conducting academic research on multiple fintech subjects, such as: cryptocurrencies; central bank digital currency; fintech in payments; and crowdfunding. The school has been hosting seminars through which external researchers talk about fintech to Ross faculty and PhD students, with recent topics including robo-advising, the effect of fintech on discrimination in lending, and iBuyers. We also started a reading group through which finance PhD students read academic research on fintech topics and discuss research ideas among themselves and with faculty members. All of this exemplifies a proactive commitment to enhancing and expanding thought leadership on fintech subject matter at Ross.

Academic-Practitioner-Policy Conference: Scheduled for April 21, 2023, this event will present fintech academic research in an accessible way to practitioners and policymakers, featuring a discussion by a roundtable of academics, practitioners and policymakers. The conference will focus around four academic papers, and each paper’s presentation will be followed by a discussion about the broad topic it touches upon. The topics to be discussed will include: 1) the interaction and competition between banks and fintechs; 2) open banking; fintech startup activity; 3) the ability of fintech to reduce disparities in access to financing; and 4) firms’ disclosure practices in the era of AI investors. Students will be in the audience taking notes and then distributing a summary report from the conference.

MAP projects in FinTech: During the 2021-2022 Academic Year, teams worked on six projects dealing with fintech. These projects were sponsored by the following companies: PEAK6; Rocket Companies; VCREDIT; Fetch Rewards; AXA XL; and Accion Opportunity Fund. Through these projects, Ross was able to apply our fintech research expertise to help companies implement effective fintech practices and solutions.

RESEARCH & INDUSTRY/POLICY OUTREACH

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ur academic research on fintech topics can be hugely beneficial to industry and policy. But positive impacts from this academic research can only happen when we make a proactive effort to reach out to industry practitioners and policy makers. That’s why we are leveraging our vast network of connections throughout the fintech industry and the University of Michigan to collaborate on fintech initiatives. Our students are also a critical part of our industry outreach work, with MAP projects often helping companies pursue powerful fintech solutions. Here are three prime examples of our industry and policy outreach and collaboration:

As we hope you can see, the Michigan Ross FinTech Initiative is a robust, results-driven effort to make Michigan Ross a proven leader in this increasingly important area. We are grateful to PEAK6 for its generous support in helping Ross shape the future of fintech education, research, and impact.