QUESTION 1
		Fintech to help drive economic revival The financial services industry rapidly transformed in 2020 as Covid-19 accelerated the growth of fintech and the adoption of digital banking services. Industry observers say the progress of digital adoption, typically carried out over five years, took place in a short space of 10 months during this period. Today, fintech is becoming a central part of the countrys financial services sector. Going forward, even more digital financial services, mostly provided by fintech, can be expected in the post-pandemic new normal as the business community moves to meet growing demand from digital natives and smartphone users in Malaysia and its regional neighbours. Initiatives and programmes by the government and regulatory bodies, implemented in 2020, are also rapidly accelerating an ecosystem of innovation a prerequisite if the country is to become a leading digital economy by 2030. According to the Fintech Malaysia Report 2021, RM460 million worth of mobile banking transactions were conducted in 2020, a 125% jump compared to 2019. The usage of e-wallets also reached new highs, with three million new mobile banking service subscribers in 2020, while 400,000 new businesses registered for QR code payment acceptance, a jump of 164% from the preceding year. Rapid adoption of digital finance can also be seen across other fintech segments such as alternative financing and cryptocurrency trading. This pace of adoption is expected to pick up when Bank Negara Malaysia grants five digital banking licences in the first quarter of 2022. As many as 40 parties are reported to have registered their interest in applying for this licence The Edge Markets, 31 August 2021.
		QUESTION 1
	a.	Based on the above article, Covid 19 has accelerated the growth of fintech and had a positive impact on the financial industry. Discuss FIVE (5) benefits of fintech in the financial services sector. (10 marks)
	b)	Many prominent fintech companies face various issues and challenges. Explain any FIVE (5) challenges faces by fintech industry. (10 marks) (Total 20 marks)