As Florida’s Premier Engineering and Technology University, UCF aims to prepare students for emerging and evolving industries. With its location in Orlando, the university aligns academic offerings with sectors that are on a rise in the region and across the state, such as UCF’s fintech interdisciplinary program offered through College of Business and College of Engineering and Computer Science. Orlando is among the top ten fastest-growing tech hubs in the U.S., with a projected tech industry job growth of 27% by 2030. Among the most steadily strengthening markets is fintech, as Florida is home to the third-largest cluster of insurance and banking companies in the U.S.
The traditional financial system is evolving from the days of simple paper notes and metal coins backed by gold. Fintech, or financial technology, refers to computer programs and other technologies used to support or enable banking and financial services. Advancements in technology have led to cost-effective and streamlined financial programs, such as cryptocurrency on blockchains, which are shared digital ledgers.
In 2019, UCF launched the fintech program which now features undergraduate certificates and a minor in fintech, a master of science in financial technology, bachelor’s in finance, and online programs in fintech and data analytics. The university also offers the first master’s degree in fintech in Florida. The need for this education and talent development for fintech roles is paramount. In addition to Orlando’s overall projected tech industry job growth in 2030, financial analysts job growth is expected to grow 12.2%, blockchain developers will rise 32% and cyber defense analysts will increase 33% by the same year.
The master’s program graduates 60 to 70 highly qualified students each year. Most of them are currently working for major financial institutions, corporations and consulting companies in Central Florida and beyond. The work done by UCF will have a lasting impact on the financial sector for decades to come, and the university is well-positioned to navigate the shifting trends of an ever-evolving field.
Fintech Studies in a Changing Landscape
UCF’s future fintech involvement in this area includes developing an artificial intelligence (AI) lab within the finance department. Researchers participating in the program are looking at having blockchain nodes within the department, allowing them to download and access blockchain data, such as Bitcoin prices and activity on the transaction network. It would enable students to more easily learn about fintech and access up-to-date cryptocurrency information as they conduct research.
Associate Professor of Finance Cuneyt Akcora says at the beginning of Bitcoin — the first established cryptocurrency — in 2009, the transaction network data was unstable, which caused researchers to examine Bitcoin and its underlying engine, the blockchain. As interest in blockchain technology grew in 2015, it evolved, leading to the development of stablecoins and online exchanges. Cross-chain lending provided a way to obtain money from blockchains with less interest than typical banks. He says that as technology continues to evolve, banks will continue to adopt cryptocurrency, thus the importance of preparing students for future careers.
“If I’m right, in a few years we will see all major banks and financial institutions have blockchain offices,” Akcora says. “If we can teach our students how to analyze this data, how to be good analysts, for example, scientists that can run code to identify a few things, I think students will find very good jobs.”
Led by finance professor and fintech program director Christo Pirinsky, the program will conduct research on credit analysis projects that predict personal defaults or characteristics.
Pirinsky says the program is already conducting AI-related research on financial intuitions and credit bureaus such as Experian. Faculty and students are examining the access that AI and open-source technology have to personal data, as well as the potential problems that may arise when AI has access to this data.
“How do you draw the line?” he says. “How far do you go [with] data privacy? How far should [companies be allowed to] go in using personal data that you generate?”
The Experts and Expertise Behind the Program
Before coming to UCF, Pirinsky worked with the Securities and Exchange Commission in Washington, D.C., to examine the interplay between technology, IT-related work and finance.
Pirinsky has published research and conducted extensive data-related studies in finance, utilizing data analytics to gain insights into various subjects including behavioral economics, corporate finance and investments.The exploration of new technologies like AI and production processes by firms is recognized as a key factor shaping the accumulation of knowledge, early-stage innovation and economic development. However, Pirinsky says exploration has been an elusive concept because it is difficult to measure.
In his recent study, A Language-Based Approach to Measuring Creative Exploration, co-authored with UCF associate professors of finance Vladimir Gatchev and Buvaneshwaran Venugopal, Pirinsky proposed a new method to measure financial firms’ exploratory activities based on textual analysis of their annual reports. The approach is based on the idea that as firms experiment with new courses of action, they need to use new vocabulary to describe their activities.
For example, Pirinsky says that 15-20 years ago the word “cloud” had a different meaning. Firms discussing clouds were primarily in the agricultural sector until innovative software was developed, leading to cloud computing. By simply observing which firms were the first to use the word “cloud” in a new context, one could identify who was behind this major innovation.
Understanding the Blockchain
Before joining UCF in 2023, Akcora began researching fintech in 2017 as he examined Bitcoin price prediction. He shifted to studying blockchains, such as Ripple and Iota, and investigated network anomalies that could be identified as hacking attempts. Through the research, he identified undisclosed ransomware payments on the Bitcoin blockchain.
This multi-year research has now led to Akcora developing a framework that embeds all blockchain addresses, enabling people to search, query and analyze them. Akcora says he hopes to develop a website where a person can view their address and see what has happened on the market regarding cryptocurrency price changes and their implications.
Other studies Akcora has worked on, such as his research paper Bitcoin Risk Modeling with Blockchain Graphs, examined how certain sub-graphs called chainlets showed predictive influence on Bitcoin prices and volatility. The research findings showed there would be activity in the blockchain transaction network that would affect the price days later. Specific transaction activity indicates that people are investing in or selling Bitcoins.
As the fintech field continues to evolve, Pirinsky and Akcora aim to advance research and talent development for the industry, which Akcora notes is an essential effort since UCF is one of few universities that offers degrees in the area.
