Vargas, Cecille S.

3FM5

I. FINTECH (Mr. Ramon Vicente De Vera II)

Fintech is a portmanteau of financial technology that describes an emerging

financial services sector in the 21st century. Originally, the term applied to technology
applied to the back-end of established consumer and trade financial institutions. Since
the end of the first decade of the 21st century, the term has expanded to include any
technological innovation in the financial sector, including innovations in financial
literacy and education, retail banking, investment and even crypto-currencies
like bitcoin. The term financial technology can apply to any innovation in how people
transact business, from the invention of digital money to double-entry bookkeeping.
Since the internet revolution and the mobile internet revolution, however, financial
technology has grown explosively, and fintech, which originally referred to computer
technology applied to the back office of banks or trading firms, now describes a broad
variety of technological interventions into personal and commercial finance. According
to EY's Fintech Adoption Index, one-third of consumers utilize at least two or more
fintech services and those consumers are also increasingly aware of fintech as a part
of their daily lives.

FinTech is all about innovation, disruption and transformation, and will

undoubtedly impact and shape the way financial institutions around the world
operate. New technologies, like machine learning/artificial intelligence, predictive
behavioral analytics and data-driven marketing, will take the guesswork and habit out
of financial decisions. "Learning" apps will not only learn the habits of users, often
hidden to themselves, but will engage users in learning games to make their
automatic, unconscious spending and saving decisions better. If one word can
describe how many fintech innovations have affected traditional trading, banking,
financial advice and products, it's 'disruption,' as financial products and services that
were once the realm of branches, salesmen and desktops move toward mobile
devices or simply democratize away from large, entrenched institutions.
II. ECONOMIC OUTLOOK (Mr. Zeno Ronald Abenoja)

The Bangko Sentral ng Pilipinas (BSP) expects the Philippine economy to

withstand potential shocks for 2018 and beyond, laying down foundations for
continued economic growth. While the coming year is likely to bring continued
challenges for the Philippines, BSP are well-placed to deal with these challenges. The
country's firm growth momentum and manageable inflation environment provide
ample space to respond appropriately to evolving domestic and global conditions.

The Philippines' gross domestic product (GDP) growth expanded to 6.9%

in the 3rd quarter of 2017, from the revised 6.7% in the 2nd quarter last year. This
brought the average economic growth to 6.7% in the 1st 3 quarters of 2017.
Meanwhile, inflation averaged 3.2% in the 1st 11 months of 2017, after it eased to
3.3% in November from a 3-year high of 3.5% in October. The central bank has set
an inflation target of 2% to 4% between 2017 and 2020.

In terms of the implementation of Republic Act No. 10963 or the Tax Reform
for Acceleration and Inclusion (TRAIN) law, the conomic growth of at least 7% is
"doable" this year. The 1st package of the tax reform program should be
complemented by the planned rice tariffication and aggressive infrastructure buildup.
Low inflation is an indication that the country's macroeconomic fundamentals remain
strong. Solid fundamentals backed by TRAIN 1 implementation, rice sector reform and
the 'Build, Build, Build' policy will push the country's growth to 7 to 8% this year and
sustain manageable inflation.

A tax redistributes purchasing power from the general public or specific

sectors in favor of spending that is preferred by economic policy. This could be in the
form of investment in infrastructure or of activities that satisfy certain public demands
that are in the nature of consumption. It creates new economic directions that raise
and redistributes output in the economy. In short, the increase in revenues brings in
more consumption and investment expenditures that the government favors as part
of the development program. The tax reform adds additional capacity that strengthens
the financing of important projects.
III. CFA PROGRAM (Ms. Bautista)

It's pretty easy to bump into someone in the financial profession who is
really excited about entering the Chartered Financial Analyst (CFA) program.
Sometimes they know what they are getting into, sometimes they don't. They may
have no idea how much time it takes or exactly how having the charter may help or
hurt them. Make no mistake about it – earning the CFA charter is a grueling process,
so if the thought has crossed your mind that it might be worthwhile to begin the
process, you had better check your preconceived ideas at the door and make sure
your dream is not just a passing fancy. Before you commit, consider what it takes to
earn the charter, how it will benefit you and your career, the negatives of going through
the process and whether the pros outweigh the cons. In this article, we'll help take you
through that decision process.

It will help you decide whether to pursue the charter. First, there is the
educational benefit; you will learn a great deal and add a great credential to your CV.
Then, there is the boost to your reputation. People in the business know the time and
dedication it takes to earn the charter. When they see that you have earned it, they
will likely believe you have ability, dedication, ethical grounding and the hard,
transferable analytical skills necessary to do the job in question.

There also may be financial benefits. You may see your salary increase
after you've earned the charter or you may surpass other applicants who don't have
the charter when competing for a new job. The operative word here is "may." Career
success depends on a number of factors, including hard work and skill. Luck,
dedication, political savvy and character have just as much to do with one's success
in the investment profession as educational background; so don't view the charter as
your golden ticket to financial paradise. There are a number of financial fields in which
having the charter is a substantial plus. The obvious is investment management. As
the investment industry continues to become more competitive (fewer positions) and
more commoditized, it will become almost imperative for any credible investment
manager to earn the charter.
IV. CISI CERTIFICATION (Mr. Guile)

The Certificate in Corporate Finance develops the essential foundation

knowledge required to work in the corporate finance sector. The syllabus explores
corporate finance legislation, regulation and techniques and provides you with an
understanding of how corporate finance transactions are developed to meet client
needs. It is suitable for practitioners working in corporate finance and related areas,
such as venture capital, who need to demonstrate a sound understanding of both the
regulatory and technical aspects of the subject. There are no entry requirements and
the exam is open to all levels. The Chartered Institute for Securities and Investment
(CISI) Level 3 Certificate in Investments are benchmark exams designed to meet the
requirements of individuals working in the securities and derivatives markets who
need to obtain Financial Conduct Authority (FCA) Approved Person status. Each year
more than 5,000 candidates take the Certificate in Securities and more than 2,000
candidates take the Certificate in Derivatives.

Fundamentals of Financial Services is an important first step in developing

the essential basic knowledge required for working in financial services. It is ideally
suited to new or junior employees working in the industry or school candidates
considering a career in finance. The Chartered Institute for Securities and
Investments is considered to be the leading professional body, globally, for securities,
investment, wealth and financial planning professionals. Founded in the year 1992 by
the London Stock Exchange, today, it has taken up the role of a global community,
spanning around 116 countries and boasting of about 40,000 members. It was
conferred the title of ‘Chartered Institute of Securities and Investment’ in the year 2009
when it was granted a Royal Charter. Apart from this, the CISI body organizes a
number of formal mixers, like forums, events, and other social media activities, which
involve and encourage their members to build an array of networks and connections,
with similar professionals from across the country. Any professional who is affiliated
by the designations of CISI can meet up and keep abreast with the current happenings
in the financial markets, while at the same time can also discuss them, with the top
level delegates from across the world at any given point.
V. PHILIPPINE BITCOIN (Mr. Cuneta)

Bitcoin trading in the Philippines has more than doubled since 2015 and
that this would only continue to get bigger. Currently there are only two virtual currency
exchanges here and that looks like it will change and soon. As bitcoin becomes more
popular I can only imagine we are going to hear more and more about it from everyone
on the spectrum – those who have made quite a bit and are pro bitcoin and those who
may not completely understand it and instead focus on the risks involved.

The concept of the financial institution is brilliant. China understand that they
(and Asia) were pushing the economy in many parts of the world and wanted to give
countries in the region an alternative lending institute to the World Bank – International
Monetary Fund and the European Union. This would give businesses more options
and in the end also make rates much more competitive and fair. The move made total
sense for a region that was one of the largest economies in the world – and still
growing. Finance Secretary Carlos Dominguez III said that the Asia-Pacific region has
emerged as a global economic power. In fact, he put it quite eloquently – “the
economic balance of power has shifted and Asia is now expected to lead global
growth. We cannot simply be content to track the development experience of the
West. We have to rethink our strategies for growth.”

However, bitcoin is not without its own caveat of course. It’s largely
unregulated and therefore there is a danger of extreme peaks and valleys. It’s also
not tangible. In the end, you can earn a lot but you can also lose a lot. That being said,
as is the case with any investment, you should never put in more than you can stand
to lose at any given time. Should you earn from it then that should just be icing.

While bitcoin was mainly popular in the United States and Europe, it has
recently begun growing in popularity in the Philippines too. In fact, 12 more virtual
currency exchanges are applying for registration with the Bangko Sentral ng Pilipinas
at the moment since bitcoin transactions have more than doubled in the past year. It
looks like the market is growing – and growing quickly. Everyone wants a piece of the
pie.
VI. GLOBAL BITCOIN (Mr. Kaddoura)

The Bitcoin landscape is a rapidly-changing environment in which it is as

easy to lose money, as it is to make it. The key difference between those who multiply
their investment and those whose lose it, is the key information that Bitcoin Global
Investment provides. As new exchanges, merchant processing companies and new
and ambitious Bitcoin startups appear on the landscape and are affected by new -and
sometimes confusing- regulations, inexperienced investors may unintentionally break
the law if their investment is not properly executed. BGI assists both small and
sophisticated investors by providing them with the information they need, whenever
they choose to invest in Bitcoin.

There has been increased regulatory pressure on Bitcoin and the entire
cryptocurrency market recently, which has been felt across the board. The confusion
that began in Korea caused a major dip, and even the retraction of those
statements helped the market grow. Within these regulatory moves, from individual
national countries, there are often powerful moves seen across the entire global
cryptocurrency market. However, they are never really big enough to bring it under full
control. These are case-by-case regulations, and these instances are not strong
enough on their own for the free running cryptomarket to be constrained by. “Effective
regulation of virtual currencies would therefore only be achievable through the
greatest possible international cooperation because the regulatory power of nation
states is obviously limited,” Wuermeling said.

The issue is that there are two very different views to regulating Bitcoin, and
these views can differ from country to country. Japan is one of the strongest
supporters of the digital currency market, giving Bitcoin currency status last year.
However, just across the Sea of Japan, on the mainland, China has been the lead
actor in the war against Bitcoin. First there was the ICO ban, then the ban on
exchanges, and now there is more bad news for those who even deal in exchange-
like services. It is hard to find an agreeable position on digital currencies for nations
with so many torn between different ends of the scale. This is one of the reasons why
regulation is so difficult.
SOURCES:

FINTECH

PWC. Fintech. Retrieved from https://www.pwc.com/gx/en/industries/financial-

services/fintech-survey.html

Investopedia. Fintech Definition. Retrieved from

https://www.investopedia.com/terms/f/fintech.asp

ECONOMIC OUTLOOK

Rappler (January, 2018). Philippines ready to face potential shocks in 2018 –

BSP. Retrieved from https://www.rappler.com/business/192913-bangko-sentral-
pilipinas-philippine-economy-2018-outlook

CFA PROGRAM

William Artzberger (May, 2017). So, You Want to Earn Your CFA?. Retrieved
from https://www.investopedia.com/articles/professionaleducation/07/cfa-charter.asp

CISI CERTIFICATION

Imarticus (January, 2017). The Benefits of a CISI Certification. Retrieved from

https://imarticus.org/the-benefits-of-a-cisi-certification-with-imarticus-learning/

PHILIPPINE BITCOIN

Tony Katigbak (December, 2017). Bitcoin in the Philippines. Retrieved from

http://beta.philstar.com/opinion/2017/12/17/1769465/bitcoin-phl

GLOBAL BITCOIN

Darryn Pollock (January, 2018). Is Global Front on Bitcoin Regulation Possible?.

Retrieved from https://cointelegraph.com/news/is-global-front-on-bitcoin-regulation-
possible