Postgraduate Courses
MFIT
Financial Technology
- MFIT 5001AI for FinTech[2-0-0:2]BackgroundLinear Algebra, Multivariable Calculus, Probability and StatisticsDescriptionThis course covers the basic theory of artificial intelligence and machine learning, and their applications to FinTech. Topics include natural language understanding and sentiment analysis using various deep learning architectures. The course also covers basic natural language processing methods for applications such as event and anomaly detection, fraud and fake news detection. The course will also relate sentiment and affect analysis to stock market trading, market monitoring, and to compliance and regulatory-related adverse events.Intended Learning Outcomes
On successful completion of the course, students will be able to:
- 1.Describe and explain basic concepts of Machine Learning and Natural Language Processing (NLP).
- 2.Implement Machine Learning and NLP algorithm in the FinTech domain.
- 3.Analyze different financial related problems and their possible solutions.
- 4.Explain how and when an NLP solution (e.g. Sentiment Analysis) can be used in the FinTech industry.
- MFIT 5002Blockchain[2-0-0:2]Exclusion(s)MSBD 5017DescriptionThis course introduces basic concepts and technologies of blockchain from engineering perspectives, such as Bitcoin architecture, consensus protocol of Bitcoin, proof of work, Ethereum, Hyperledger and smart contracts, as well as the blockchain applications. The course also covers the limitations and possible improvements of the blockchain system.Intended Learning Outcomes
On successful completion of the course, students will be able to:
- 1.Explain Bitcoin concepts.
- 2.Define consensus protocols of Bitcoins.
- 3.Compose smart contracts on Ethereum.
- 4.Develop decentralized applications (DAPP).
- MFIT 5003Data Analysis[2-0-0:2]DescriptionThis course covers the basic and advanced statistical approaches to data analysis and shows how to use these techniques to analyze a financial data with a statistical package, such as Python and R. The key topics are reading and describing data, categorical data, time series data, correlation, nonparametric comparisons, ANOVA, multiple regression, general linear models and quantile regression models.Intended Learning Outcomes
On successful completion of the course, students will be able to:
- 1.Explain the core ideas on financial data analysis by using statistical models.
- 2.Apply rigorous, analytic, highly numerate approaches to analyze and solve problems in daily life and at work with Python and R, especially in finance.
- 3.Carry out objective analysis and prediction of quantitative information in finance with independent judgment.
- 4.Communicate effectively about statistical results obtained from R and Python to both lay and expert audiences utilizing appropriate information and suitable technology.
- MFIT 5004Financial Data Mining[2-0-0:2]Exclusion(s)CSIT 5210, MSBD 5002DescriptionIn this course, students will first learn basic concepts and techniques about data mining, including data preprocessing, data cleaning, clustering, classification and outlier detection. Then, students will learn how to apply these techniques to financial data, such as sentiment analysis and social networking mining.Intended Learning Outcomes
On successful completion of the course, students will be able to:
- 1.Define data preprocessing.
- 2.Explain clustering, classification and frequent pattern mining.
- 3.Describe outlier and anomaly detection.
- 4.Apply sentiment analysis and community detection.
- MFIT 5005Foundations of FinTech[2-0-0:2]DescriptionThis course aims to provide a foundational introduction to financial technologies. More specifically, this course will cover various important financial technologies and innovations, including investment and financing technologies such as P2P lending and crowdfunding, payment technologies such as mobile payments, wealth management technologies such as robo-advisors, blockchain technologies such as cryptocurrencies, and other technologies such as InsurTech and RegTech.Intended Learning Outcomes
On successful completion of the course, students will be able to:
- 1.Describe the principles of P2P lending and crowdfunding.
- 2.Explain the principles of wealth management technologies.
- 3.Define the foundational theories of blockchain technologies.
- 4.Identify the functions of InsurTech and RegTech.
- 5.Analyze advantages and limitations of financial technologies qualitatively and/or quantitatively.
- 6.Apply finance or economics to the analysis financial technologies.
- MFIT 5006Mathematical Foundation of FinTech[2-0-0:2]DescriptionThis course teaches mathematical and quantitative skills as a technical preparation for development of financial technology. The topics covered in this include multivariate calculus, linear algebra, optimization, numerical computation, elementary number theory for cryptography, probability, statistics and other topics, with applications to finance.Intended Learning Outcomes
On successful completion of the course, students will be able to:
- 1.Recognize a wide variety of statistical models.
- 2.Identify a wide variety of optimization algorithms.
- 3.Develop skills on evaluation of models and optimization algorithms.
- 4.Differentiate strength and weakness for difference models and algorithms.
- 5.Implement at least one programming language, e.g., Python, R or MATLAB.
- MFIT 5008Decision Analytics for FinTech[3-0-0:3]DescriptionThis course aims to introduce decision analytics instruments and their applications in FinTech. Main topics covered in this course include basic probability and statistics, predictive analytics, prescriptive analytics such as linear programming integer programming, dynamic programming and sequential decision making, stochastic models, quality control, Monte Carlo simulation, game theory, and their applications in various areas of FinTech.Intended Learning Outcomes
On successful completion of the course, students will be able to:
- 1.Define basic theories of probability and statistics.
- 2.Apply prescriptive analytics to modeling and analysis.
- 3.Apply predictive analytics to modeling and analysis.
- 4.Analyze real problems via quality control and game theory.
- 5.Conduct Monte Carlo simulation to solve real problems.
- 6.Explain the applications of decision analytics to various FinTech-related problems.
- MFIT 5009Optimization in FinTech[3-0-0:3]DescriptionThis course introduces the basic theory of convex optimization and illustrates its practical employment in a wide range of FinTech applications. Techniques and applications of nonconvex optimization are also considered. Examples of the problems considered include Markowitz portfolio optimization and its many variations (e.g., maximum Sharpe ratio portfolio, risk-parity portfolio, robust portfolio, sparse portfolio), data fusion, machine learning for classification/estimation, imputation of missing data, big data analysis, outlier detection, data clustering, and deep learning.Intended Learning Outcomes
On successful completion of the course, students will be able to:
- 1.Design a portfolio based on optimization.
- 2.Clean data (outlier detection and imputation of missing data).
- 3.Perform data fusion from different sources via optimization.
- 4.Analyze high-dimensional data via clustering and low-rank fitting methods.
- 5.Employ deep learning methods in a financial context.
- MFIT 5010Statistical Machine Learning[3-0-0:3]Exclusion(s)MATH 5470, MSDM 5054DescriptionThis course provides students with an extensive exposure to the elements of statistical machine learning in supervised and unsupervised learning with real world datasets. Topics include basic models in regression and classification, resampling methods, model selection/assessment, and some standard techniques in unsupervised learning such as clustering and dimensionally reduction.Intended Learning Outcomes
On successful completion of the course, students will be able to:
- 1.Recognize a wide variety of learning algorithms.
- 2.Execute the application of algorithms to data.
- 3.Develop the skill to perform evaluation of learning algorithms.
- 4.Differentiate strength and weakness for different algorithms.
- 5.Implement well at least one programming language.
- MFIT 5011Statistical Methods in Finance[3-0-0:3]DescriptionThis course addresses fundamental topics in statistics and their applications to financial models. The statistical methods include descriptive and exploratory statistical analysis, statistical inference, linear and non-linear regression, principal components and factor models. Financial applications include statistical analysis of portfolio theory, CAPM and multifactor pricing models and financial time series analysis.Intended Learning Outcomes
On successful completion of the course, students will be able to:
- 1.List and apply basic statistical tools.
- 2.Implement the statistical analysis procedures through R.
- 3.Differentiate basic financial models.
- 4.Execute statistical analysis of financial data.
- MFIT 5012FinTech Enrichment Workshops[0 credit]Previous Course Code(s)SBMT 6020ADescriptionThe course aims to broaden MSc(FinTech) students’ horizon and develop students’ essential knowledge and skills related to financial technology through participating in a series of enrichment activities. Different speakers, practitioners, or FinTech professionals may be invited to conduct the workshops or engagement activities. Students are required to attend at least six enrichment activities recognized by the program in order to pass this course. Graded PP, P or F.Intended Learning Outcomes
On successful completion of the course, students will be able to:
- 1.Identify the updated development and the current market trend in different sectors of Financial Technology industry.
- 2.Apply the knowledge and practical skills attained from the enrichment activities in the real business world.
- MFIT 5013Capstone FinTech Cases and Analysis[2-0-0:2]Previous Course Code(s)MFIT 6000ADescriptionThis course aims to expose students to various “FinTech” and “TechFin” management issues in both financial services and technology companies from 2016 to present. Whether it is about resolving technology issues at financial services companies or addressing financial or regulatory issues confronting technology firms, this course will put students in the manager’s or protagonist’s role in gathering and analyzing information before ultimately making decisions. We begin with case studies at traditional financial firms before evolving to more non-traditional firms. The financial or regulatory issues challenging technology companies, and the emerging categories of digital assets like crypto currencies in the context of alternative strategy in investment management will also be investigated and studied.Intended Learning Outcomes
On successful completion of the course, students will be able to:
- 1.Compare the difference between technology strategy in financial institutions vs. financial services offered by technology companies.
- 2.Identify core competencies of successful and unsuccessful FinTech companies.
- 3.Identify and analyze risk factors in FinTech industry, such as regulatory, scientific / technological and human factors.
- 4.Apply case study concepts to real-life professional environment and career development.
- MFIT 5014Derivatives Instruments and Structured Products[3-0-0:3]Previous Course Code(s)MFIT 6000BDescriptionThis course is designed to provide a comprehensive view on derivatives market and a good training on financial engineering. The whole process of financial engineering will be introduced from payoff design / packaging / distribution to pricing / pricing / hedging / funding. The popular and representative structures across the asset classes (Equity, Funds, FX, Interest Rate, Credit and Commodities) will be presented with discussions on the investment rationale, basic modelling, pricing and hedging techniques. The customized index business based on factors, portfolio theory and other trading models are also introduced with up-to-date industry practices.Intended Learning Outcomes
On successful completion of the course, students will be able to:
- 1.Acquire a comprehensive view on derivatives market, popular structured products, and a good training on financial engineering.
- 2.Develop proficiency in structured products across the asset classes (Equity, Funds, FX, Interest Rate, Credit and Commodities) for the investment rationale, basic modelling, pricing and hedging.
- 3.Apply financial engineering techniques in the whole process for derivative products, from payoff design / packaging / distribution to pricing / hedging / funding.
- 4.Build customized index business based on factors, portfolio theory and other trading models with up-todate industry practices.
- MFIT 6000Special Topics[1-3 credit(s)]DescriptionSelected topics in financial technology of current interest in emerging areas. May be repeated for credit if different topics are covered.Intended Learning Outcomes
On successful completion of the course, students will be able to:
- 1.Identify the updated development in the emerging areas of financial technology and apply the knowledge accordingly.
- 2.Analyze the major problems in a specific topic in financial technology and evaluate possible solutions.
