Furthering research through the lens of economics and finance
Convenience is the cornerstone of fintech. From playing a live game on your phone to sending money to a friend within seconds, fintech solutions have revolutionised how quickly and securely we can make transactions. Consumers no longer need to visit a bank or wait in line; fintech provides access to powerful technology that streamlines all financial processes and puts the power of personal finance firmly into our hands — helping us build wealth and live life with more conveniences than ever before.
International Monetary Fund (IMF) Economic Research Assistant Khyati Chauhan, who graduated from the SMU Master of Science in Financial Economics (MSFE) programme in 2021, has certainly grasped the importance of the current fintech zeitgeist.
“I think fintech interests not just me, but everyone,” says Khyati, an Indian national who now develops course materials for the IMF’s Singapore Regional Training Institute (STI).
“I come from a country where fintech is still in its nascence. Hence, people still rely on traditional ways of doing things, which are inefficient and unproductive.
Come to Singapore and, suddenly, everything digital – we don’t believe in cash anymore, at least the young don’t. We mostly do everything online and there is a sense of security despite a gazillion scams going on and data privacy issues.”
The availability of digital financial services has revolutionised how we manage our finances, providing convenience and flexibility that were unimaginable a few decades ago. With bank account applications, insurance policies, loans and purchases all taking mere hours to complete, consumers feel more secure and empowered.
Growing knowledge across domains
With fintech experiencing such accelerated growth, financial economics is a powerful tool to gain insights into the world of technology, enabling us to make informed decisions related to monetary choices, business decisions and investments.
The SMU MSFE Programme — the first multidisciplinary Master’s offered by SMU — is an incredible opportunity for ambitious students from around the world to navigate the complexities of the modern financial world. This ground-breaking programme, combining econometrics and finance, is designed to produce professionals equipped with the capabilities to tackle today’s business challenges with confidence because it bridges the gap between theory and practice.
“When I looked at the amalgamation of finance and economics in the MSFE course, it struck me that I could study two disciplines at once,” recalls Khyati.
“I knew these would be interconnected and I would be able to understand the finance world through the eyes of an economic enthusiast. I would have the chance to apply economics in finance, which I did, through multiple projects and group discussions.”
For example, economic principles such as supply and demand or opportunity cost help analyse the overall potential of financial technology applications like mobile banking, automated investment advisors, and cryptocurrency. With a deeper understanding of financial economics in hand, we can capitalise on the potential growth and advancement of financial technology in both personal finances and the global economy.
Applying knowledge beyond the classroom
The prevalence of new fintech technologies has dominated recent discussions, as the collective momentum behind its implementation continues to gather pace. With both the World Trade Organisation and the World Bank placing a premium on digitalisation and financial technology, alongside their associated educational initiatives, we can now expect to witness major paradigm shifts regarding increased use in everyday life.
As noted by Khyati, it is projected that by 2030, the fintech sector is set to surge ahead at an annual growth of 17.2 per cent, thus providing ample scope for further disruption. Given that the industry was valued last year at over US$110 billion, it is only natural that such advancements will provide wide-ranging benefits for all involved stakeholders.
“MSFE has contributed highly to my current role as I do not feel alienated when faced with technical terms at work,” explains Khyati.
“On a day-to-day basis, I apply the concepts that I learnt during the programme and it made me more resilient in taking up new challenges and problems. The subjects provided hands-on programming which has been extremely helpful at work, such as the usage of EViews and R during the second semester, which helps me understand big data and analysis.”
EViews is a software package used for statistical analysis, forecasting, and econometric modelling, while R is a programming language used for data analysis and statistical computing.
Through her course of work, Khyati develops real-life case studies using macroeconomic data for the IMF’s regional training centre in Asia-Pacific. The STI focuses on providing government officials with training in macroeconomic and financial management, and related legal and statistical issues. She therefore supports the economists in STI with their research and any data analysis help that they might need.
As she notes: “Fintech has been one of most innovative and important breakthroughs for business organisations. For almost all financial services companies, fintech has offered more consumers and a broader consumer base. Some features like online helpdesks and chat robots have brought businesses and consumers closer. They have become more accessible and transparent gaining the greater trust of their audience.”
The financial industry has become more complex over the last decade, producing many new challenges and opportunities. Financial professionals have to understand new economic policies and regulations, as well as new financial products. There are now advanced tools of economic theory, financial econometrics, and computational methods available to study the manifold problems faced by the financial industry.
And through its stimulation of strategic problem solving and intuitive decision making, the MSFE programme nurtures graduates ready to excel in a highly competitive industry that demands accuracy and strategies that are constantly updated.
Furthermore, Singapore is a key geographic location for global leaders of tomorrow due to its status as an economic and financial hub. Situated at the crossroads of Asia, Singapore is a major centre for trade, shipping, and finance.
“Singapore’s education system is world-famous,” states Khyati.
“Singapore is a dream for many, myself included, mainly because how efficient the city-state is. It was ranked among the safest countries for several years, which was another cherry on the cake.
More than anything, it was the faculty members’ profile at SMU that led me to believe that my career would have a kick start. The opportunities that I’ve had during the MSFE program and the interactions I’ve had with the professors is something I will cherish my whole life.”
Last updated on 15 Feb 2023 .
