Design of a strategic plan for the creation of an online education and advisory platform focused on personal finance

Bachelor’s Degree Final Thesis Title Design of a strategic plan for the creation of an online education and advisory platform focused on personal finance MEMORANDUM Author: Alex Aguilera Núñez Director: José Luis Eguía Gómez Date: June 2023 Escola Tècnica Superior d’Enginyeria Industrial de Barcelona Memorandum June 26, 2023 pg. 2 Memorandum June 26, 2023 pg. 3 Summary The thesis explores the development of strategic plan to design a platform aimed at addressing the problem of financial illiteracy. The primary objective of the thesis was to design an online platform that provides educational resources and advisory services to combat financial illiteracy. To achieve this goal, thorough research has been conducted on the industry, delving into its current state, trends, and challenges. Understanding the industry landscape has served as a foundation for formulating an effective strategic plan. The study also focuses on understanding the potential end users of the platform. Through in-depth analysis, this thesis aims to gain insights into their needs, preferences, and behaviours. This understanding played a crucial role in shaping the platform's features, usability, and user experience. Additionally, the thesis examines existing competitors in the market. By conducting a comprehensive competitor analysis, it has been tried to identify the strengths and weaknesses of established players in the industry. This analysis facilitated the development of a unique value proposition for the proposed platform. A significant aspect of the thesis involved exploring design alternatives for the platform. This project discusses different approaches, considering factors such as user interface design, technical infrastructure, and scalability. A crucial point of consideration is the debate between opensource and proprietary software, weighing the advantages and disadvantages of each approach. Lastly, financial projections are also included in the thesis to assess the platform's potential viability. This has been done by conducting a detailed financial analysis, forecasting revenue streams, cost structures, and potential growth trajectories. These projections aim to provide valuable insights into the platform's economic sustainability and future prospects. Based on the comprehensive research and analysis, the thesis concludes that the development of an online education and advisory platform focused on personal finance is a complex endeavour. The industry requires deep expertise and knowledge to effectively address financial illiteracy. Additionally, the thesis recommends the next steps to be the transition from conceptualization to implementation by building the platform. It is emphasized the importance of reinforcing the team with key profiles to ensure the platform's long-term sustainability. Memorandum June 26, 2023 pg. 4 Memorandum June 26, 2023 pg. 5 Table of contents Summary .............................................................................................................................................. 3 Table of contents ............................................................................................................................... 5 Glossary ............................................................................................................................................... 7 Preface .................................................................................................................................................. 9 1. Introduction ............................................................................................................................... 10 1.1. Context ................................................................................................................................. 10 1.2. Objectives ............................................................................................................................ 11 1.3. Project Scope ...................................................................................................................... 12 2. State of the Art (SoA) .............................................................................................................. 14 2.1. Macro and Microeconomic Analysis in Spain ................................................................ 14 2.2. Educational Content ........................................................................................................... 15 2.2.1. Current State ............................................................................................................... 15 2.2.2. Where do we want to head? ..................................................................................... 19 2.3. Funding Options ................................................................................................................. 21 2.3.1. Private Funding ........................................................................................................... 21 2.3.2. Public Funding ............................................................................................................ 22 2.4. Artificial Intelligence (AI) and its power for education and investing .......................... 24 2.4.1. Use Cases ................................................................................................................... 24 2.4.2. Limitations and legal aspects ................................................................................... 28 2.4.3. Corporate and Social Responsibilities .................................................................... 30 3. Methodology, timeline and resources ................................................................................ 32 4. Competition Study ................................................................................................................... 35 4.1. Main Competitors ............................................................................................................... 35 4.2. Worthy Mentions ................................................................................................................. 42 5. Final User Study ....................................................................................................................... 44 5.1. Target ................................................................................................................................... 44 5.2. Validation ............................................................................................................................. 44 6. Design Alternatives ................................................................................................................. 47 6.1. Possible Alternatives ......................................................................................................... 47 6.2. Technology Stacks ............................................................................................................. 53 6.2.1. Key Concepts .............................................................................................................. 53 6.2.2. Open-Source vs. Proprietary Software ................................................................... 56 6.2.3. Defined Stack .............................................................................................................. 61 6.3. Selected Alternative ........................................................................................................... 63 Memorandum June 26, 2023 pg. 6 7. Financial projections ............................................................................................................... 65 7.1. Overview .............................................................................................................................. 65 7.2. Revenue model ................................................................................................................... 68 7.3. Assumptions ........................................................................................................................ 69 7.4. Funding ................................................................................................................................ 71 8. Environmental and Social Impact Assessment ............................................................... 73 8.1. Environmental Impact ........................................................................................................ 73 8.2. Social Impact ....................................................................................................................... 75 9. Validation and Implementation ............................................................................................. 76 10. Conclusions ........................................................................................................................... 79 11. Future Developments .......................................................................................................... 83 Bibliography ...................................................................................................................................... 85 Memorandum June 26, 2023 pg. 7 Glossary BOE: The BOE is the official Spanish national gazette dedicated to the publication of laws, provisions and acts of compulsory insertion. CAGR: The compound annual growth rate (CAGR) is the rate of return (RoR) that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each period of the investment’s life span. CARRIED INTEREST: Carried interest, or carry, in finance, is a share of the profits of an investment paid to the investment manager specifically in alternative investments (private equity and hedge funds). CONVERTIBLE LOAN AGREEMENT: A convertible loan agreement is a loan agreement that can be converted into a predetermined number of equity shares later. CFO: CFO stands for Chief Financial Officer. A Chief Financial Officer is a senior executive responsible for managing the financial actions of a company. CNMV: The CNMV is an independent regulatory body responsible for the supervision and inspection of the securities markets in Spain, as well as those activities related to these markets. COST OF GOODS SOLD (COGS): The cost of goods sold (COGS) is the sum of all direct costs associated with making a product. It appears on an income statement and typically includes money mainly spent on raw materials and labour. CTO: A chief technology officer (CTO) is the executive in charge of an organization's technological needs as well as its research and development (R&D) EAF: EAF stands for “Empresa de asesoramiento financiero”. An EAF is a financial advisory firm that requires authorisation and registration with the Comisión Nacional del Mercado de Valores ("CNMV"), being under its supervision and requiring its members to have accredited experience and expertise to ensure greater protection for clients. EBITDA: EBITDA, or earnings before interest, taxes, depreciation, and amortization, is an alternate measure of profitability to net income. By stripping out the non-cash depreciation and amortization expense as well as taxes and debt costs dependent on the capital structure, EBITDA attempts to represent cash profit generated by the company’s operations. GDP: GDP measures the monetary value of final goods and services - that is, those that are bought by the final use - produced in a country in a given period of time (say a quarter or a year). Equivalent to PIB (Producto Interior Bruto) in Spain. Go-to-market (GTM): A go-to-market (GTM) strategy is a plan that details how an organization can engage with customers to convince them to buy their product or service and to gain a competitive advantage. KPI: A KPI is a specific, measurable, and quantifiable performance metric used to track progress over time towards a particular objective or goal. OECD: The OECD is a unique forum where the governments of 37 democracies with market-based economies collaborate to develop policy standards to promote sustainable economic growth. PRE-MONEY VALUATION: A pre-money valuation refers to the value of a company before it goes public or receives other investments such as external funding or financing. PROFIT & LOSS STATEMENT (P&L): Profit and loss (P&L) statement refers to a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a quarter or fiscal year. Memorandum June 26, 2023 pg. 8 SaaS: SaaS stands for Software as a Service. It is a software distribution model where applications are hosted by a service provider and made available to customers over the internet. SEC: The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market manipulation. SEED EQUITY ROUND: Seed equity round refers to the equity accumulated during the earliest stage of funding. Usually, seed rounds come from family members and angel investors, which dilute the founder's ownership percentage by an average of 15 percent. START-UP: A START-UP is young company founded to develop a unique product or service, bring it to market and make it irresistible and irreplaceable for customers. VENTURE CAPITAL: Venture capital (VC) is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. Memorandum June 26, 2023 pg. 9 Preface Origin and motivation of the project Financial education is a very important topic in today's society, but unfortunately, most people lack the necessary training to make smart financial decisions. This problem is due, in large part, to the lack of financial education that is taught in schools and universities. Financial education is an essential skill that enables people to make informed decisions about their money and their financial future. However, many students and adults do not receive adequate education on this subject at school or in their daily lives. As a result, many people find themselves struggling with debt, poor financial decisions, and a lack of saving capacity for the future. As we will see further on, there are other countries or societies which are considerably more advanced in this matter, but having lived and, therefore, having been educated in Spain, I have personally found myself at the end of my university career with a complete lack of knowledge in personal finance. And by that I do not mean having extensive knowledge in finance, but instead knowing the basics, such as how a loan works, knowing how to budget my monthly expenses or having some notions on the principals of investing. It is for this reason that I want to investigate and do a deep dive in this topic with the main aim of trying to find a solution to this problem. Additionally, throughout the course of this project, I would like to give emphasis to technology as it is a cornerstone factor for the potential success of the solution. During the last 20 years, the progress we have seen in the technological industry has been immense, and we currently have in hand cutting edge technology which will help us in developing an innovative and disrupting solution. In summary, the lack of financial education is a problem that affects many people and can have serious financial consequences in the long term. Thus, I want to do extensive research about the current situation and see whether there is something I can do in order to improve the situation. If I am able to carry on the appropriate research and find a fiting solution, this could turn out to be a very motivating project and have a huge impact on many people's lives. Memorandum June 26, 2023 pg. 16 Nowadays, one of the main ways in which financial education is promoted in Spain is through the financial sector. As seen in the BOE (Boletín Oficial del Estado), on March 15, 2019, the Law 5/2019, regulating the promotion of long-term savings and pension plans, was approved by the Spanish government. (Gobierno de España, 2019) This law aims to promote long-term savings and encourage citizens to plan for their retirement. As part of this effort, the law includes provisions related to financial education, such as the obligation for financial institutions to provide information and education to their customers, and to ensure that their employees and customers are adequately trained in financial matters. The law also establishes the creation of a national strategy for financial education, which will coordinate the efforts of different institutions and organizations to promote financial literacy among the general population. To be more precise, this law obliges Spanish regulated financial institutions to provide clear and transparent information about the products and services they offer, including fees, interest rates, and other important terms and conditions which may apply. However, this law has been harshly criticized because, since the financial institutions themselves are the ones who theoretically provide this content, the information transmitted is usually subject to their own interests, which in many cases makes the information irrelevant to the end consumer. Another important way in which financial education is promoted in Spain is through the education system. Since 2014, the Spanish Ministry of Education has required all schools to include financial education as part of their curriculum. This means that all students, during their primary and secondary education are taught the basics of budgeting, saving, investing, and managing debt. This is an important step towards promoting financial literacy among the next generation of Spanish citizens. In this sense, we must recognise that this is a great initiative that has been promoted at the state level and it is to be welcomed, since, as we have been saying, receiving financial education from the time we are young is something that should be indispensable. However, the main problem with this model is that it is often said that the age at which this training is received is usually a little too early. At the end of the day, when you are between 10 and 15 years old, you are most likely living at home with your parents and do not have to worry about anything to do with finances. Not only that, but at that age there will be more important things for a child to learn. Moreover, once that knowledge becomes necessary and meaningful, say from the age of 18 onwards, it is likely that you will have little or no recollection of what you studied five years ago. Memorandum June 26, 2023 pg. 17 Back in 2008, when the financial crisis started, in order to promote financial education, the Bank of Spain alongside the CNMV (Comisión Nacional de Mercados y Valores), created a website called "Finanzas para todos" (Finance for Everyone). (CNMV, Banco de España, 2008) This website offers free online courses and educational resources to help individuals improve their financial literacy. The courses cover a range of topics, from basic budgeting to more advanced topics like investing and retirement planning. Surprisingly, the extent and quality of information included in this website is considerable and it has been a great public approach to improving the state of financial education amongst the Spanish population. Nonetheless, yet again, the outcome of this project is considered to be very poor. This is mainly due to two problems. The first is the lack of publicity and promotion of the existence of this platform. Most of the population does not know that this tool exists and is in operation, which has resulted in virtually no use by the population. The second could be divided into two sections, which together lead us to the aforementioned problem. On the one hand, there is the lack of engagement that this type of content generates in the end user, basically due to its density and technicality. On the other hand, the fact that it is a type of education that is not compulsory makes it very difficult for the mass of the population to be willing to take it, as it really takes a lot of initiative to start taking these courses without anyone directly indicating, recommending or forcing you to do so. Finally, for a change of perspective, let's take a look at a study published in the "Swiss Journal of Economics and Statistic" on the state of financial literacy and financial education globally. In 2019, in an article published by Annamaria Lusardi, who is a University Professor of Economics and Accountancy at the George Washington University School, the director of the Italian Financial Education Committee and holds a Ph.D. in Economics from Princeton University, in the Swiss Journal of Economics and Statistics, (Lusardi, 2019), Lusardi described the evidence and implications of the need for financial education. The biggest KPI (Key Performance Indicator) she uses to demonstrate the existence of financial illiteracy is a trigger called “The big three”. The big three refers to three concepts, which are believed to be universal, applying to every context and economic environment. Three such concepts are (1) numeracy as it relates to the capacity to do interest rate calculations and understand interest compounding; (2) understanding of inflation; and (3) understanding of risk diversification. Translating these concepts into easily measured financial literacy metrics is difficult, but Lusardi and Mitchell designed Memorandum June 26, 2023 pg. 18 a standard set of questions around these concepts and implemented them in numerous surveys in the USA and around the world. The results were the following: Table 1. Source: Lusardi (2019). Financial literacy and the need for financial education: evidence and implications. Looking at the results shown in the table, although there are many different ways of analysing them, such as studying the differences by country and what these differences are due to, in this case what we will do is simply look at the column where it says, "All 3 correct". This column shows the percentage of the people surveyed who got all 3 questions right. As you can see, these results are dreadful. Only in two cases, Germany and Switzerland, did they manage to get above 50% correct. And this is no coincidence, since, as you know, these are two of the wealthiest and most prosperous countries in the world today, a fact that is clearly reflected in their financial knowledge. On the other hand, we have to consider that the questions asked in these surveys were extremely basic, and asked about issues that should be known to any ordinary citizen. In this particular case, although Spain was not included in this study, we can relate the results obtained in other nearby countries, such as Italy or France, to make a Memorandum June 26, 2023 pg. 19 comparison between the two. For these countries, the aforementioned percentage is between 25-30%, which demonstrates the poor financial culture that may exist in Spain. 2.2.2. Where do we want to head? In the past and nowadays, financial education has been often associated with dry, technical materials that are dense and difficult to understand. However, as more individuals are responsible for managing their own finances, from budgeting and saving to investing and planning for retirement, there has been a growing demand for financial education that is both accessible and engaging. In the future, we believe that financial education will become much more dynamic and interactive, with a focus on creating content that is less dense and easier to understand, and this is the trend which I have been able to observe in global leading educational institutions. To achieve this, I plan to look at some of our competitors, such as Balio or Miccapital, and learn from their approaches. These companies have successfully created educational materials that are both informative and engaging, using a range of multimedia tools to help simplify complex financial concepts. We believe that by incorporating similar elements into our own educational materials, we can create a more engaging and effective learning experience for our clients. Furthermore, we recognize that financial education needs to be accessible to everyone, regardless of their background or level of financial knowledge. As such, we will work to create materials that are tailored to different audiences, with a focus on providing clear, concise explanations of financial concepts that are easy to understand. By taking a more inclusive approach to financial education, we can help ensure that everyone has the knowledge and tools they need to make informed financial decisions and achieve their financial goals. This ideology and way of thinking was not invented by me but is rather supported and demonstrated by professionals with years of experience in the sector. If we go back to Annamaria Lusardi's article that I introduced in the previous chapter, some of the statements she makes in point (4) "The way forward for financial literacy and what works" are the following: - “To be effective, financial literacy initiatives need to be large and scalable. Online community platforms provide unique opportunities to deliver financial education to large and often diverse segments of the population.” - “Many countries have seen efforts in recent years to implement and provide financial education in schools, colleges, and workplaces. However, the Memorandum June 26, 2023 pg. 20 continuously low levels of financial literacy across the world indicate that a piece of the puzzle is missing.” - “In addition to the potential for large-scale implementation, the main components of any financial literacy program should be tailored content, targeted at specific audiences.” - “It is also important to note the delivery method of these programs. For instance, video formats have a significantly higher impact on financial behavior than simple narratives, and instruction is most effective when it is kept brief and relevant.” - “Given the rising cost of education and student loan debt and the need of young people to start contributing as early as possible to retirement accounts, the importance of financial education in school cannot be overstated. It is important to reduce the costs of acquiring financial literacy, if we want to promote higher financial literacy both among individuals and among society.” These statements demonstrate that, indeed, the alternative I am putting forward makes sense and is reasoned and backed by a personality with a proven track record in the education sector. On the other hand, following along the line of trying to demonstrate this philosophy and way of thinking, I wanted to mention a very successful case of a company that adopted this same ideology to teach mathematics. The company I am referring to is Innovamat (Innovamat, S.L., 2023). Innovamat is an educational START-UP whose aim is to promote a competent, personalised and practical learning of mathematics. It is aimed at children between the ages of 3 and 16 and prioritises the understanding of content and the development of mathematical skills linked to problem solving, encouraging the learning of this discipline through experimentation, conversation and individualised practice. In this sense, Innovamat offers sequenced learning trajectories, resources, training and support to the educational community, with the help of experts in mathematics didactics. Innovamat was founded in 2017 by Andreu Dotti, Marc Sábada (both UPC Students) and Àlex Espinet. To date, they have helped more than 350,000 students and are currently present in more than 1,800 schools in countries such as Spain, Mexico, Colombia and Italy. In 2022, Innovamant had €11.2M in revenue and raised €20M in a funding round, with leading VC (Venture Capital) investors such as Kibo Ventures, Bonsai Partners and King Capital. In 2023, they are expecting to grow 40% YoY and open new countries such as the USA. (Dotti, 2023) Memorandum June 26, 2023 pg. 21 This example, although not directly related to the finance vertical, demonstrates that the option of disrupting a market and a way of teaching is more than real, and that the opportunity that currently exists in this sector is gigantic. Overall, we believe that the future of financial education lies in creating dynamic, accessible materials that engage learners and provide them with the knowledge and skills they need to succeed. By looking to our competitors and adopting new approaches to financial education, we can help empower individuals to take control of their finances and achieve financial stability and success. 2.3. Funding Options If we want to create a strong project which can eventually lead to solution that generates impact, having access to the appropriate funding will be crucial, as it will provide us with the necessary financial resources for a business or organization to operate, grow and achieve our goals. Without funding, it could be difficult to develop new products, hire talented employees, market effectively, and scale the business. In addition, having access to funding could help us in weathering unforeseen challenges or economic downturns, allowing us to stay afloat and continue operating. Funding can also signal to investors, customers, and partners that a business is viable and has the potential for success. This can help build credibility and attract additional investment, which can fuel further growth. When it comes to funding a startup in Spain, particularly in Catalonia, there are various funding options available, both in the private and public sectors. According to Upbizor (UPBIZOR, S.L.U, 2022), which is a leading company in Catalonia and Spain in its industry which offers consulting services for startups about public and private financing, tax incentives, financial and business consultancy and management and legal services, here are some of the most common funding options for Spanish (Catalan) startups. 2.3.1. Private Funding 1. FFF Round: The FFF round is short for Friends, Family and Fools round. It’s kind of a joke, but it actually has a basis in reality and is a term frequently used in the startup industry. This basically consists in convincing your friends and family to invest in your idea or concept. This type of round will usually take place in the very Memorandum June 26, 2023 pg. 22 early stages of a startup’s fundraising life cycle. And without it, most startups that we know as corporations today would have never made it. At this stage, FFF rounds usually are between €10-50k. 2. Angel Investors: Angel investors are high-net-worth individuals who invest their personal funds into startups in exchange for equity or convertible debt. They may also provide mentorship and guidance to the startup founders. Angel investors usually target companies which are in a very early stage, where the most common invested amounts per angel will range between €5-50k. 3. Venture Capital: Venture capitalists are professional investors who manage funds from institutional investors and family offices. They typically invest in startups with high growth potential in exchange for equity. Within the venture capital industry, you will find very different approaches to investing, where some funds will invest in very early-stage companies (€100k investment) and others will target later stage companies (€5M+ investment). Of course, within this broad range we will find all kinds of investors who position themselves in the middle. The final picture we will find is that there really are investors for all types of companies. Something to bear in mind, however, is that when dealing with professional investors, the bureaucracy and processes will be longer and more complicated, as they must make sure that everything is in order and there are not any possible legal liabilities. 4. Crowdfunding: Crowdfunding platforms allow startups to raise funds from a large number of individuals in exchange for rewards, equity or debt. This option can be a good way to raise awareness and validate a product or idea. In addition, you can allow people with less disposable income to invest in you project, which could be an attractive alternative to some audiences. 5. Bank Loans: Startups can also obtain funding from banks in the form of loans, which need to be repaid with interest. Banks may require collateral or personal guarantees from the founders, which may be a difficult requirement to accomplish if the company founders are young individuals. In the very early stage, this is the less suitable funding opting due to the risk involved. 2.3.2. Public Funding 1. ENISA: Enisa stands for “Empresa Nacional de Innovación, S.A.” and is a Spanish public institution dependent on the Ministry of Industry, Energy and Tourism that actively participates in the development of innovative and economically viable projects and offers loans that help start-ups to leverage capital increases. Enisa Memorandum June 26, 2023 pg. 23 loans are suitable for super early-stage startups and can provide funding from €25k up to €1.5M. 2. Neotec (CDTI): The Neotec aid lines are promoted by the CDTI for the start-up of new business projects that require the use of technologies or knowledge that are developed from research activity and in which the business strategy is based on the development of technology. The NEOTEC grant consists of a subsidy of up to 70% of the bankable budget with a minimum amount of €175k and a maximum of €250k. As it is a grant, it is a type of aid that does not need to be repaid. It should also be noted that this aid opens and closes for a short period of time, usually one or two months, starting in May. For this reason, the conditions of the aid tend to vary with each call for applications. 3. ICO: ICO stands for “Instituto de Crédito Oficial” and is a public bank that provides funding to Spanish startups through loans, guarantees, and capital investment. This type of credit lines, although backed by the public entity, must be processed by the banking institutions attached to the Official Credit Institute (ICO). These are responsible for processing, granting and analysis. At present there are seven ICO financing lines: four national, i.e. to finance investment and activities related to activity in Spain; and the international ones, to finance the internationalisation of your company or to finance export activity. ICO loans are suitable for more advanced companies and can provide funding up to €25M. 4. CDTI: CDTI stands for “Centro para el Desarrollo Tecnológico Industrial” and is a public entity that channels applications for aid and support for Spanish companies' R&D&I projects at national and international level. They are generally partially responsible grants, i.e., with a loan part and a grant part (no need to repay part of the loan). Eligible funding amounts go from €175k up to €2M. 5. ICF: ICF stands for “Institut Català de Finances” and is a public financial institution owned by the Generalitat de Catalunya whose objective is to promote and facilitate access to financing for Catalonia's business sector. It aims to contribute to the growth of the Catalan economy by acting as a complement to the private financial sector. Eligible funding amounts go from €25k up to €2,5M. 6. Acció: ACCIÓ is the public agency for the competitiveness of Catalan companies, attached to the Department of Business and Labor of the Generalitat de Catalunya. Its objective is to promote the competitiveness and growth of the Catalan business sector, through the promotion of innovation, business internationalization and the attraction of investments. Eligible funding amounts are up to €75k. Memorandum June 26, 2023 pg. 24 7. European Union Grants: Spanish startups can apply for grants from the European Union for innovative projects or research. It is important to note that private funding options often provide more flexible terms but may come with higher risks and expectations for growth. Public funding options, on the other hand, may require more paperwork and have stricter requirements, but offer more stable funding sources. In summary, Spanish startups have various funding options available, both in the private and public sectors. Depending on the startup's needs, growth potential, and stage of development, different funding sources can be combined to create a funding mix that best fits the startup's goals and financial needs. 2.4. Artificial Intelligence (AI) and its power for education and investing 2.4.1. Use Cases Artificial intelligence (AI) has been a buzzword in recent years, and its adoption is widespread in many industries, including finance and investing. AI has revolutionized the way financial institutions operate, from automating mundane tasks to providing data-driven insights to make informed decisions. The following are some of the ways in which AI is currently being used in trading and investing: 1. Algorithmic Trading Algorithmic trading, also known as "algo trading," uses machine learning algorithms to analyse vast amounts of data and execute trades automatically. Algo trading systems can analyse market data in real-time, identify patterns and trends, and execute trades based on predefined rules. This technology enables traders to make informed decisions quickly and accurately, reducing the risk of human error and increasing profitability. 2. Portfolio Optimization AI algorithms can analyse portfolio data, including asset allocation, risk tolerance, and investment goals, to optimize portfolio performance. Machine learning algorithms can analyse historical data and market trends to identify investment opportunities and adjust Memorandum June 26, 2023 pg. 25 portfolio strategies accordingly. This technology enables investors to achieve their investment goals while minimizing risk and maximizing returns. 3. Sentiment Analysis Sentiment analysis involves analysing social media, news, and other sources of data to determine the sentiment of the market. Machine learning algorithms can analyse large volumes of data to identify market trends and investor sentiment. This technology can help traders make informed decisions and predict market movements based on investor sentiment. 4. Prediction Models AI algorithms can analyse historical data and market trends to build prediction models that forecast market movements. These models can take into account various factors, such as economic data, news events, and technical analysis, to provide accurate predictions of future market movements. This technology can help traders make informed decisions and optimize their investment strategies. 5. High-Frequency Trading High-frequency trading (HFT) is a type of algorithmic trading that involves executing trades at high speeds. HFT uses machine learning algorithms to analyse market data and execute trades automatically at lightning-fast speeds. This technology enables traders to capitalize on market movements quickly and efficiently. Others use-case examples can be found in companies such as Miccapital, where they have developed an AI software algorithm to help them recommend their clients financial instruments and products from their own banks. This is a quite interesting approach to AI implementation in the finance industry, yet we do not have much more information about the technology which is behind it. Nonetheless, in the recent years, one of the most frequent use-case of Artificial Intelligence in the finance industry has been for financial market predictions. After having thoroughly read through a scientific article published in the Hindawi Publishing Corporation (Sharma, et al., 2020), I have been able to develop some context. Complex economic relations and models and high-frequency events in ever-evolving markets make propagating linear relations amongst economic and financial variables outdated. For estimating complex nonlinear relations and predicting stock market returns, computer science and econometric analysis go hand in hand. Advancements in computing Memorandum June 26, 2023 pg. 32 3. Methodology, timeline and resources Developing a thesis requires a well-defined methodology, a clear timeline, and the utilization of various resources. In this chapter I will explore how I should approach each of these aspects in a comprehensive and creative manner. Methodology plays a crucial role in the thesis development process. To ensure a systematic and organized approach, I will follow a structured methodology that begins with a thorough examination of the state of the art in our field. By immersing myself in the current research landscape, I will try to gain valuable insights into the existing knowledge and identify areas where this thesis can make a meaningful contribution. This initial exploration will serve as the foundation for the subsequent sections of the thesis, which will involve a more detailed and in-depth study. In this thesis, I have set it to be essential to emphasize the conceptualization and design of my project. This focus will allow me to showcase your ability to think critically, propose innovative solutions, and address real-world challenges. Next, by providing a concise description of the target user, I will be able to align m research with their needs and demonstrate the practical implications of my work. Turning to the timeline, I have been set a commendable goal of completing this thesis by the end of June, enabling me to defend it in July. This timeline requires effective planning and diligent execution. To visually represent this timeline and track progress, I have employed a Gantt diagram. This dynamic tool has enabled me to outline key milestones, allocate specific timeframes to each task, and have a clear overview of the project's progression. Memorandum June 26, 2023 pg. 33 Table 4: Project plan divided by weeks Table 5: Gantt Diagram Now, let's delve into the diverse resources available during this thesis development journey. The internet is an invaluable asset, granting me access to a vast array of resources at my fingertips as online platforms provide a wealth of scientific articles, journals, databases, and other scholarly materials which may be relevant to my research. These digital resources are updated regularly, ensuring that I stay abreast of the latest findings and breakthroughs in the studied field. In addition to online sources, scientific articles, and journals, I will also be tapping into the expertise of my job colleagues and industry professionals, who will significantly enhance my thesis. Engaging with these individuals will allow me to tap into a wealth of practical knowledge, gain fresh perspectives, and receive valuable feedback on all of my ideas. In addition, their insights can inspire new avenues of exploration and guide me towards additional resources or relevant contacts. Furthermore, in this era of advancing technology, leveraging AI-powered tools such as ChatGPT can prove immensely beneficial. By interacting with ChatGPT, I may be able to harness the capabilities of language models to generate ideas, seek clarification on specific concepts, and receive suggestions for further research. However, it is essential to exercise critical thinking and verify the information generated by AI models to ensure accuracy and reliability. Memorandum June 26, 2023 pg. 34 In summary, by employing this comprehensive methodology, adhering to my timeline, and making the most of the resources at my disposal, I will develop a robust and impactful thesis. This approach will enable me to contribute as meaningfully as possible to my field of study, showcase my intellectual prowess, and ultimately set the stage for a successful defense of this research. The journey of thesis development is as rewarding as the destination itself so I will embrace the process, stay curious, and let my creativity flourish. Memorandum June 26, 2023 pg. 35 4. Competition Study In this chapter I will look further to studying the current landscape of our competitors, to know what there is offered in the market and how can I make my product or solution different and better than the rest. We will start by identifying who our main competitors are. This could include both direct and indirect competitors. I will then analyse their strengths and weaknesses: This could include their product/service offerings, pricing strategy, marketing approach, customer base, and other factors that contribute to their success or challenges. Moreover, we will try to give focus to the following key points, which should be the pilar of any complete market competition study. 1. Evaluate their market share: Determine how much of the market your competitors currently hold, and how this may impact your own business. 2. Study their marketing and branding strategies: Look at how your competitors are promoting themselves and their products/services, including their advertising, social media presence, and overall branding. 3. Assess their customer base: Understand who their target customers are and how they are reaching and retaining them. 4. Review their financials: Look at their financial statements, including revenue, profit margins, and other relevant metrics. 5. Determine their potential threats and opportunities: Identify any potential threats or opportunities that may arise from your competitors' activities or market trends. 4.1. Main Competitors After having done a thorough research on the market we want to attack, we have been able to identify the following most relevant competitors in Spain: 1. Balio Balio is an e-learning platform that was founded in Barcelona in 2019. All the education they offer is focused on finance and investment and they currently have approximately 40 programmes. These courses are classified into 6 large groups, which are: Cryptocurrencies, Real Estate, Personal Finance, Investment, Income Growth and Entrepreneurship. Each of these courses has between 25 and 40 lessons, with an average duration of between 2:30 and 4 hours. All courses are Memorandum June 26, 2023 pg. 36 priced at €49.90 and include access to the full content as well as a range of downloadables such as pdf or excel files. To date, Balio has raised €876K in funding from external professional investors in a Seed Equity Round, which has helped them in becoming market leaders. (Balio Fintech, S.L., 2023) Key aspects: - Their content is of high quality, easy to understand and well structured. - The way in which the courses are delivered, in an online video format, makes it an easily accessible and enjoyable source of education. - They currently have more than 4000 active students and more than 30 teachers. - 84% of its students are between 19 and 26 years old. - The content strategy they use for their social networks is exceptional. They have used levers such as the creation of a podcast to increase their reach. 2. The Startup CFO The Startup CFO was born in Madrid in 2019 and was originally conceived to be specialists in providing financial and strategic support for fast-growing companies. They core business consists in 4 business lines: External CFO, consulting, financing and bookkeeping. The idea was to provide externalized financial services for recently born companies. Eventually, and that is our area of interest, they created educational courses targeted to young professionals or individuals who would like to enter the world of startups and finance. Unlike the solution offered by Balio, we could say that The Startup CFO focuses its courses on a more educated audience. The content of its courses is much more technical and is focused on learning how to manage the finances of a startup, complex investment strategies, or understanding how structured finance products work. Their courses last approximately 12 weeks, with 6h/week of classes. Classes are online but live, and courses are priced at around €1,500. To date, The Startup CFO has raised €175k of funding from external investors in a Convertible Loan Agreement (CLA). (Startup Finance, S.L., 2023) Key Aspects: - Their content is of high quality, easy to understand and well structured, yet with a more technical and advanced approach. Memorandum June 26, 2023 pg. 37 - The way in which the courses are delivered, in an online video format, makes it an easily accessible and enjoyable source of education. - The intake for each course is about 30 students, since the follow-up by teachers is much more exhaustive. - Classes are no pre-recorded, they are live-streamed. - Marketing and communication on social media is quite poor. The strategy is much more conservative. - Their students are aged between 24-35 years old. - Aimed at a public with a higher purchasing power. To identify the next set of competitors, it is important that we understand the mission of the platform we want to create. To give a very quick summary, what we are looking for is an all-in-one solution. That is, a platform that, on the one hand, offers training, but also has financial advisory services. That is why we have decided to study in depth each and every one of the financial advisory companies regulated by the CNMV in Spain. With this we want to understand the current state of the financial advisory industry and see how we want to position ourselves. (Annex A) 3. Financial Advisory Firms Graphs 1 & 2: % of Eaf’s with Webpage and Education services In these first two graphs we have information regarding their websites and the education offered. Starting with the graph on the left, we can see how, although it is true that 78% of the Eaf's analysed have a website, most of them have very oldfashioned designs, they seem to be from another 'era'. On the other hand, we see that 91% of the Eaf's do not offer training or education services, which we consider 78% 22% WEB PAGE Yes No 9% 91% EDUCATION Yes No Memorandum June 26, 2023 pg. 38 to be a fundamental pillar on which to work, a fact that leaves us with practically non-existent competition in this section. Graphs 3 & 4: % of Eaf’s with Fees and minimum investment clearly displayed Continuing with fees and minimum capital requirements, we observe that 46% of the Eaf’s do not specify the commissions they charge for their services, which is surprising as this is theoretically obligatory according to the regulations imposed by the CNMV. Likewise, 89% of the Eaf’s do not show the minimum capital required for their advisory, a fact that conveys a notable lack of transparency in this sector and in which we also wish to differentiate ourselves. Graphs 5 & 6: % of Eaf’s with Social Networks. Social Network distribution by type. Let's now look at social media, which is crucial in a fully digitalised 21st century, being one of the most important tools, if not the most important, to market your brand and products. In this case, the figures speak for themselves. 52% of the Eaf's do not even have social networks of any kind. Moreover, of the 48% that do, 83% of 54% 46% FEES Specified Not specified 11% 89% MINIMUM INVESTMENT Specified Not specified 48% 52% SOCIAL NETWORKS Yes No 0% 20% 40% 60% 80% 100% LinkedIn Instagram Facebook Twitter Youtube Tiktok SOCIAL NETWORKS BY TYPE Memorandum June 26, 2023 pg. 39 them only have LinkedIn, while only 17% of them have 2 or more different social networks. In total, there are only 9 Eaf's with 3 or more social networks and only one of them has all the networks mentioned in the previous graph. We want to put a huge focus on all social networks, create quantity and quality content with different formats for all platforms in order to have a wider reach to reach an audience that no Eaf is reaching at the moment. Finally, taking into account all the parameters mentioned above, I have subjectively scored each and every one of the Eaf's with a score of 1-10 according to the degree of competition they represent, with a 1 being a company that generates no competition and a 10 being a company with total competition. The results are clear, 96.6% of the companies scored 4 or less, with 1 being by far the most repeated score. Those that scored 5 or higher, namely 6, we have proceeded to analyse them in more detail below. Graph 7: Eaf’s competition level scores SPECIAL CASES DANEL CAPITAL, EAF, S.A. They work without minimum capital, without personalised advice and with algorithms. They work with a subscription model and bring the financial advisory sector into the 21st century. We believe that they need to strengthen their marketing strategy and their monetisation model, but their product (an algorithm 0% 10% 20% 30% 40% 50% 60% 70% 80% 12345678910 SCORING 1 TO 10 Memorandum June 26, 2023 pg. 40 that analyses data and indicators and recommends actions every week that are rated between 0 and 10) is very interesting. FEELCAPITAL EAF, S.L. Semi-personalised advisor where, after answering a short questionnaire, a roboadvisor takes an x-ray of your needs and recommends the investment products that best suit your situation. Good use of social networks but poor monetisation system. We also think it is an interesting product. GLOVERSIA CAPITAL, EAF, S.L. They offer training. Traditional consultancy adopting current sales and marketing models. Good website. INVESTOR WEALTH MANAGEMENT EAF, S.L. Highlights: They offer real time advisory service with high-risk equity products, similar to what we want to do. We don't consider them to be competitors, very bad on-line presence. NEXTEP ASESORES FINANCIEROS EAF, S.L. Traditional personalised advice focused on ETFs. Very good online presence and good use of social networks. Not a direct competitor but uses a sales and marketing channel adapted to the current situation. MICAPPITAL 2017 EAF, S.L. Miccapital was founded by Borja Nieto, Carlos Bernabeu and Miguel Camiña at the end of 2016. They define themselves as "private banking in your pocket and for everyone". Their business model, B2C (Business to consumer), is based on establishing the investor profile of their new clients by means of a suitability questionnaire, selecting the banks in which they have accounts and, from there, finding the investment product (present in some of their banks) that best suits their needs. Roughly speaking, a personalised guide to investing your customers' savings through the banks with which they have accounts. I also seek an optimal introduction to the world of investing for our clients, but we do not believe that the solution offered by Miccapital is sufficient to help a new investor, for three reasons: Memorandum June 26, 2023 pg. 41 Lack of learning on the part of the investor. A new investor either does not yet know what their specific profile is, or they end up moulding it as time goes by and their needs change. That is why I want our clients to find, shape and test their own investor profile, thanks to individualised sessions, with which they will develop their own financial tools. How archaic is investment through banks themselves. In addition to long-term investment portfolios, the analysts of our active management department will operate in a wide range of markets, which will help to integrate all the variety of opportunities that exist. MERKAAT Despite not being an EAF, but a subsidiary of the bank Crèdit Andorrà, this app has pre-designed portfolios that are assigned to investors according to their risk profile, just as I would like to do. The differences come from the high commissions they charge the client and the lack of communication with them. We do not believe that they can be a direct rival, as they are a subsidiary, and their promotion is almost non-existent. Memorandum June 26, 2023 pg. 48 5. Recording and replay options: Webinars can be recorded, allowing participants to access the material later. This is particularly useful for individuals who cannot attend the live session or want to review the content at their own pace. Recordings can be shared with participants as a valuable resource. The same applies to prerecorded content. Downsides: 1. Technical issues: This system relies on stable internet connections and appropriate technology. Technical glitches such as poor audio/video quality, internet disruptions, or software compatibility problems can hinder the learning experience. Participants may encounter difficulties in accessing the platform or experience interruptions during the sessions. 2. Lack of personal interaction: Unlike in-person courses, it may lack the same level of personal interaction and face-to-face networking opportunities. Building personal connections with the instructor and fellow participants might be more challenging in a virtual setting. 3. Distractions and multitasking: Participants attending webinars remotely or watching pre-recorded content may face distractions from their surroundings, leading to reduced focus and engagement. They may be tempted to multitask or get sidetracked by other digital distractions, which can impact their learning experience. 4. Limited non-verbal communication: In this type of learning strategy, the non-verbal cues and body language that are essential for effective communication can be limited or completely absent. This can make it more challenging for the instructor to gauge participants' understanding or address their concerns accurately. 5. Technological barriers for some participants: Not all potential participants may have access to the necessary technology or reliable internet connections. This could limit the inclusivity of the course and exclude individuals who do not have the required resources to join the webinar. Ultimately, the suitability of running a course through webinars and pre-recorded contents depends on the nature of the content, the target audience, and the specific goals of the course. Careful consideration of these factors will help determine whether the most effective format for delivering the educational content side of it. Additionally, the investing branch will provide personalized investment recommendations, portfolio management tools, and real-time market data to assist users in making informed investment decisions. This integrated approach offers users a holistic learning experience while empowering them to apply their knowledge directly to their investment activities. Memorandum June 26, 2023 pg. 49 2. Knowledge Exchange Community: This design alternative focuses on fostering a vibrant community of learners and investors through a peer-to-peer model. The platform will feature discussion forums, chat rooms, and mentorship programs where users can interact, share ideas, and seek advice from both experts and peers. Educational content, such as articles, videos, and podcasts, will be curated and contributed by industry professionals and experienced investors. Running an educational platform based on a peer-to-peer model can offer several benefits and downsides. Here are some key points to consider: Benefits of a Peer-to-Peer Educational Platform: 1. Diverse Perspectives: A peer-to-peer model encourages learners from different backgrounds and experiences to engage with one another. This fosters a diverse learning community where participants can share insights, perspectives, and knowledge, enhancing the overall learning experience. 2. Active Learning: Peer-to-peer interactions promote active learning by encouraging participants to engage in discussions, ask questions, and seek clarification from their peers. This hands-on approach can deepen understanding and retention of the material as learners actively participate in the learning process. 3. Collaboration and Networking: By providing discussion forums, chat rooms, and mentorship programs, a peer-to-peer platform facilitates collaboration and networking among learners. Participants can form study groups, exchange ideas, and build professional connections within the community, which can lead to future collaborations or mentorship opportunities. 4. Enhanced Problem-Solving Skills: Engaging with peers in discussions and problemsolving activities can sharpen critical thinking and problem-solving skills. Learners can benefit from different approaches and strategies suggested by their peers, expanding their own problem-solving repertoire. 5. Community Support: A peer-to-peer platform offers a sense of community and support. Learners can find encouragement, motivation, and assistance from their peers, fostering a supportive learning environment. This support network can be particularly valuable for individuals who may feel isolated in traditional educational settings. Memorandum June 26, 2023 pg. 50 Downsides 1. Variable Quality of Information: In a peer-to-peer model, the quality of information shared can vary. Participants may have different levels of expertise or knowledge, which can lead to inaccurate or misleading information being circulated. It's essential to have moderators or mentors who can guide discussions and ensure the accuracy and reliability of information shared. 2. Limited Expertise: While peer-to-peer interactions can be valuable, they may not always replace the expertise and guidance of a qualified instructor or mentor. Some learners may require guidance from subject matter experts to fully understand complex topics or receive personalized feedback on their progress. 3. Time and Engagement Management: Peer-to-peer interactions require active engagement from participants. However, managing time and ensuring consistent participation can be challenging, especially if learners have competing priorities or varying levels of commitment. Some participants may contribute more actively, while others may be passive or less engaged, impacting the overall learning experience. 4. Resources: Following on with the above topic, to run a forum and community effectively requires and active monitoring and support from industry professionals and valid personnel. This will require a considerable amount of resources, and we will probably need to have staff members solely dedicated to this issue. 5. Potential for Misinformation or Misinterpretation: In open discussions, there is a possibility for misinformation or misinterpretation of information. Without proper guidance or moderation, learners may inadvertently rely on incorrect or biased information, leading to misunderstandings or flawed learning outcomes. 6. Lack of Structure: Peer-to-peer models may lack the structured curriculum and progression found in traditional educational settings. While learner autonomy is encouraged, some individuals may prefer a more structured approach with clearly defined learning objectives and milestones. It's important to strike a balance between peer-to-peer interactions and expert guidance within the educational platform. Incorporating mentoring programs, expert moderation, and providing access to reliable resources can help mitigate potential downsides and ensure a fruitful learning experience. This design alternative encourages collaborative learning, knowledge sharing, and networking among individuals with a shared interest in personal finance education and investment. Memorandum June 26, 2023 pg. 51 3. Personalized Financial Planning Suite: This design alternative places emphasis on providing users with personalized financial planning tools and resources. The platform will offer interactive financial calculators, budgeting templates, and goal-setting features to help users assess their financial health, set achievable goals, and develop customized action plans. The education branch will provide curated content tailored to users' financial goals and specific needs, offering stepby-step guidance on topics like retirement planning, tax optimization, and risk management. The investing branch will feature model portfolios, investment simulators, and analytics tools to empower users to make informed investment decisions aligned with their financial goals. This design alternative aims to empower users to take control of their finances by providing personalized guidance and actionable insights. On the educational side, it is important to highlight that in order to lower the overall complexity level of the platform all of the content would be pre-recorded. On some specific days, it would be possible to do some webinars or other type of live activities, but it would be very punctual in order to be able to broadcast important milestones such as the presentation of new features, a monthly Q&A session, etc. In this alternative, we want to focus on building a platform that helps users to manage their finances and investments on a daily basis, which is something that is practically non-existent today. Building a Financial Planning Suite can have several benefits and downsides. Here are some key points to consider: Benefits 1. Proprietary Technology for Non-Professional Users: Having proprietary technology that enables non-professional users to leverage and manage their personal finances and investments on a daily basis can be a significant benefit. It empowers individuals with tools and resources to make informed financial decisions, track their progress, and optimize their financial goals. 2. Increased Financial Literacy: A Financial Planning Suite can contribute to enhancing financial literacy among non-professional users. By providing educational resources, interactive tools, and personalized recommendations, the suite can help users understand complex financial concepts and develop better money management skills. 3. Customization and Personalization: Building a suite allows for customization and personalization features. Users can tailor the platform to their specific financial goals, risk tolerance, and preferences. Personalized recommendations, alerts, and Memorandum June 26, 2023 pg. 52 insights can assist users in making informed decisions based on their unique circumstances. 4. Centralized Financial Management: The suite can provide a centralized platform for users to manage their various financial aspects, including budgeting, expense tracking, investment portfolio monitoring, retirement planning, and more. This consolidation of financial information can streamline financial management and provide a comprehensive overview of an individual's financial health. 5. Automation and Efficiency: Automation features within the suite can simplify financial processes and save users time and effort. Features such as automated expense categorization, bill payments, investment rebalancing, and portfolio analysis can help users efficiently manage their finances, reducing manual work and potential errors. Downsides 1. Complexity and Resource Consumption: Building a comprehensive Financial Planning Suite can be a complex and resource-consuming endeavour. It requires significant investments in technology infrastructure, software development, data security, and ongoing maintenance. The development process may involve various stakeholders, expertise, and extensive testing to ensure a robust and user-friendly platform. 2. Regulatory Compliance and Security: Financial planning involves sensitive personal and financial data. Compliance with financial regulations and ensuring data security are critical considerations. Building a secure platform that adheres to relevant regulatory standards and safeguards user information can be challenging and requires ongoing attention to maintain compliance and protect user privacy. 3. Technical Challenges and Integration: Integrating various financial services, APIs, and data sources into a unified platform can present technical challenges. Ensuring seamless data flow, compatibility, and reliability across different financial systems and providers requires careful planning and implementation. 4. User Adoption and Support: Convincing non-professional users to adopt and engage with a new financial planning suite may be a challenge. Users may be hesitant to entrust their financial information to a new platform, and providing adequate support, education, and user-friendly interfaces becomes crucial for successful adoption. 5. Evolving Financial Landscape: The financial industry is dynamic, with changing regulations, investment trends, and technology advancements. Building a Financial Planning Suite requires ongoing updates and adaptations to remain relevant and Memorandum June 26, 2023 pg. 53 competitive in an evolving landscape. Staying up to date with industry changes and user expectations demands continuous investment and effort. It's important to carefully assess the benefits and downsides while considering the target audience, market demand, and available resources before embarking on the development of a Financial Planning Suite. These design alternatives present different approaches to address the educational and investment needs of users on an online platform focused on personal finance. Each alternative offers unique features and experiences, catering to diverse user preferences and objectives. Evaluating their feasibility, potential impact, and alignment with your target audience will help you determine the most suitable design direction for your platform. 6.2. Technology Stacks 6.2.1. Key Concepts Defining key concepts before delving deeper into a topic is important because it establishes a common understanding and provides a foundation for further exploration. By clarifying key terms, concepts, and contextual factors upfront, I want to ensure that all readers are on the same page, reduce confusion, and enable more effective communication and analysis as the topic unfolds. This initial clarity will set the stage for a comprehensive and coherent study of the subject matter. The most relevant concepts are the following: 1. Learning management system: A Learning Management System (LMS) is a software application or platform that facilitates the administration, delivery, tracking, and management of online educational courses, training programs, and learning materials. It provides a centralized hub where instructors, learners, and administrators can interact and engage in various educational activities. While most often called an LMS, other names that might be used is training management system, learning activity management system, or even learning experience platform (LXP). (Shareknowledge, Inc., 2023) Memorandum June 26, 2023 pg. 54 A learning content management system (LCMS) sometimes gets confused with an LMS as well. An LCMS is software that is used to author and manage learning content. The two systems are complimentary to one another but not the same. An LMS is designed to make life easier for those in charge of training and development—e.g., identifying and assessing individual and organizational learning goals, tracking progress towards meeting those goals and collecting and presenting data for supervising the learning process. In addition to delivering content, an LMS can also handle tasks such as onboarding, compliance, and skills gap analysis. Here are some key features and functionalities of an LMS: - Course Management: An LMS allows instructors to create, organize, and manage courses or learning modules. - User Management: LMS platforms provide user management capabilities, allowing administrators to create and manage user accounts. - Content Delivery: LMS platforms provide a means to deliver educational content to learners. This can include text-based materials, multimedia resources (such as videos, audio files, and interactive presentations), quizzes, assignments, and assessments. - Communication and Collaboration: LMS platforms often include communication and collaboration tools to facilitate interaction among learners and instructors. Features such as discussion forums, chat systems, messaging, and announcements enable learners to ask questions, engage in group discussions, and receive feedback from instructors. - Assessment and Grading: LMS platforms offer built-in assessment and grading features. - Progress Tracking and Reporting: LMS platforms provide tools for tracking learner progress and generating reports. - Integration and Extensibility: LMS platforms often support integration with other systems and tools. This allows for seamless data exchange and interoperability with third-party applications such as video conferencing tools, content authoring tools, learning analytics platforms, or student information systems. LMS platforms can be used in various educational settings, including K-12 schools, higher education institutions, corporate training programs, and online learning platforms. They provide a structured and organized environment for delivering Memorandum June 26, 2023 pg. 55 educational content, fostering interaction and collaboration, tracking learner progress, and facilitating assessment and feedback. 2. SCORM SCORM, which stands for Sharable Content Object Reference Model, is a set of technical standards for eLearning software products. SCORM tells programmers how to write their code so that it can “play well” with other eLearning software. It is the de facto industry standard for eLearning interoperability. Specifically, SCORM governs how online learning content and Learning Management Systems (LMSs) communicate with each other. SCORM does not speak to instructional design or any other pedagogical concern — it is purely a technical standard. (Rustici Software LLC, 2023) One key aspect of SCORM is content packaging. SCORM provides guidelines for organizing e-learning content into self-contained units called "SCORM packages" or "SCORM courses." This packaging involves structuring the content, including multimedia files, assessments, and metadata, in a specific format that can be easily imported and delivered by an LMS. SCORM also defines communication protocols and standards for data exchange between the e-learning content and the LMS. This includes how content interacts with the LMS, how learner progress is tracked and reported, and how the LMS retrieves and displays content components. By adhering to SCORM standards, elearning content can work seamlessly with any SCORM-compliant LMS. Another advantage of SCORM is content reusability. SCORM-compliant content can be easily imported and used in different SCORM-compliant LMS platforms. This promotes content reusability, as developers can create and package elearning content once, and it can be deployed on multiple LMS systems. In the recent years, SCORM has gone through different versions, with each version introducing improvements and enhancements to the standard. SCORM allows for versioning of content and supports backward compatibility, ensuring that older SCORM packages can still be used in newer LMS versions. While SCORM has been widely adopted in the e-learning industry, it is important to note that newer standards, such as xAPI (Experience API) and cmi5 (Computer Managed Instruction), have emerged to address the limitations of SCORM and provide more advanced tracking and data capabilities. (Advanced Distributed Learning, 2021) Memorandum June 26, 2023 pg. 56 6.2.2. Open-Source vs. Proprietary Software Before being able to determine a defined technological stack for the chosen solution, let’s explore the comparison between open source and proprietary software. Open-source software is characterized by its collaborative and transparent nature, allowing users to freely access, modify, and distribute the source code. In contrast, proprietary software is developed and controlled by a specific company, with limited access to the source code. By examining the advantages and disadvantages of both approaches, considering factors such as cost, flexibility, security, and community support we will try to understand and provide insights to assist in decision-making and choosing the most suitable software solution. The majority of the information presented in this chapter has been taken from an article from Linked in’s website. (Wazobia Technologies Ltd, 2022) Open-Source Software Open-source software (OSS) is licensed under terms that let its source code be freely distributed, accessed, and modified by any user. As a result, people from all walks of life can utilize this product at no cost. Thus, it may be concluded that software steadily improves over time. However, the development of software can take numerous forms. Therefore, every aspect of it can undergo a radical transformation over time. While development is generally beneficial for businesses and their software, it can also make the product more vulnerable to attack from hackers. That is why it is crucial to have cautionary labelling. In a nutshell, it is a particular type of software in which the source code is freely accessible to programmers worldwide. This allows programmers to tailor the code to their needs, ensuring that it is optimally implemented in their projects. Software like this is highly regarded by the engineering community, consumer base, and development community. Therefore, they may tailor this primary code to their needs and make it uniquely theirs. Additionally, one can freely distribute Open-Source Software. Here are the essential advantages of open-source software: - Source code can be tailored to your requirements. - Reproduction and distribution are possible without payment. - Free assistance because the community that utilizes the product constantly answers problems, gives advice, creates forums, and provides comprehensive documentation. - Fewer errors and more rapid resolutions. This relates to the prior argument. Memorandum June 26, 2023 pg. 57 - Open-source projects have the potential to be viewed, utilized, and enhanced by millions of individuals. - Consequently, some experts consider open-source software to be more secure. - As open-source software’s’ do not have a private owner as per say, the possibility of being left hanging because the owner decides, for example, to close the company does not exist. - It is worldwide. Nowadays, and based on the research carried out throughout this project, two of the most known and recognised open-source learning management systems (LMS) are Chamilo and Moodle, which will explain more in depth later-on. Proprietary Software On the other hand, there is proprietary software, which essentially must be purchased to be utilized. The code is closed and copyrighted, and its use is limited, especially regarding dissemination and modification. In disregard of one of its most essential qualities, proprietary software is often known as commercial or closed-source software. In addition to being of high quality and originality, this software is sometimes modifiable within the developers' restrictions. In contrast, to open source, the source code of specific software can only be edited by the individual or group who generated it. The source code is solely protected by the intellectual property rights of the software's owner or publisher. This form of software is referred to as "proprietary software" since only the original owner(s) are legally permitted to inspect and edit the source code. Simply put, proprietary software is held exclusively by the person or organization that created it. As the term suggests, proprietary software is the exclusive property of its authors or publishers, and no one outside the community may use, alter, copy, or distribute modified software versions. He may sell it under specific conditions that users must adhere to avoid legal issues. This category included some of the world's most revolutionary software packages in the past. The following are the features of proprietary software: - It requires a purchase before using it. - Possesses a license that belongs to a developer, company, or owner. - Copying or distributing the file is illegal without access to the source code. - The end-user’s consent is required for its use. Memorandum June 26, 2023 pg. 64 expertise of our community, allowing individuals to exchange insights, ask questions, and engage in meaningful discussions. In addition to the benefits which users will experience, by creating a subscription-based business model, it will allow us to have a recurring stream of income which will be off massive help and a key driver in order to build a sustainable business in the long term. To ensure the proper functioning of the forum and maintain the quality of shared information, we will have professionals on board who will provide support to all members. These industry experts will offer their knowledge and expertise, verifying the accuracy and value of the shared information. Their presence will not only enhance the credibility of the forum but also provide guidance to ensure that users receive reliable and trustworthy information. Furthermore, we plan to diversify our business model by incorporating a second branch: the creation of online courses. These courses will cover relevant topics such as investment, savings, and personal finance management. To ensure the highest quality of content, we will collaborate with professionals from each sector who will contribute their expertise in course development. This partnership will be based on a revenue-sharing model, aligning the interests of both parties. The decision to deliver the courses entirely online is driven by the desire to maximize the feasibility of our project. By operating online, we can scale our customer base without significantly increasing our resource requirements. This approach allows us to achieve a growth-to-resources ratio that is inversely proportional, meaning that as our customer base expands, our resource needs remain relatively constant, leading to improved efficiency and profitability. Lastly, in order to foster a powerful and social community, we will organize quarterly faceto-face events. These events will cover various relevant topics in the financial field and feature special guests who will provide masterclass sessions. These in-person gatherings will enhance the sense of community, offer networking opportunities, and provide valuable insights from industry leaders. In summary, the Knowledge Exchange Community, design alternative number 2, offers the opportunity to create a thriving community where users can share and receive information. The inclusion of professionals will ensure the accuracy and value of the shared content. Additionally, the introduction of online courses and face-to-face events will further enhance our offerings, enabling us to provide comprehensive educational resources and foster meaningful connections among our members. Memorandum June 26, 2023 pg. 65 7. Financial projections Financial projections are a vital component when starting a new entrepreneurial endeavour. They will enable us to set goals, allocate resources, and make informed decisions. Projections act as a roadmap for financial success, aiding in securing funding, assessing risks, guiding operational choices, and monitoring performance. They are essential for attracting investors, determining business value, developing an exit strategy, and overall, ensuring effective planning, management, and optimization of the financial aspects of a new business. By creating comprehensive financial projections, entrepreneurs can establish a solid foundation for their venture and increase their chances of long-term success. 7.1. Overview As for financial projections, I have built a Profit & Loss management account (P&L) considering a 6-year timeframe. In this P&L I have defined the main financial KPI’s, as revenue streams, COGS to obtain the gross profit, then all the operational expenses to obtain the EBITDA. Lastly, I have considered depreciation and amortization and interest expense in order to obtain the net income for each of the six years. It is important to highlight that these projections have been prepared making some assumptions which I will precisely explain later. When building a business plan, there will always be some uncertain factors which are quite complex to predict with 100% accuracy, so it should be taken into consideration the fact that as its own name showcases, these are projections, and could very well change in the future. In Spain, the most common accounting principles are based on the generally accepted accounting principles (GAAP) established by the Spanish Institute of Accounting (Instituto de Contabilidad y Auditoría de Cuentas or ICAC). (Instituto de Contabilidad y Auditoría de Cuentas (ICAC), 2023) These principles are aligned with the International Financial Reporting Standards (IFRS) and the European Union directives. Some of the key accounting principles commonly followed in Spain are Accrual Basis, Prudence, Going concern, Materiality, Consistency and Prorating. These principles have been used when building the below financial projections. Memorandum June 26, 2023 pg. 66 Table 8: P&L Projections KEY TAKEAWAYS The main takeaways of a Profit and Loss (P&L) statement, also known as an income statement, provide a snapshot of a company's financial performance over a specific period. Here are the key points which summarize the main takeaways from this P&L statement: We see that during Year 1 we are expecting no revenues, as during the first year we will need to start developing the platform, with external help from specialised contractors, and the website, equipment, processes, etc. (everything necessary to go to market) at which Assumptions Memorandum June 26, 2023 pg. 67 point we will be able to start generating income. After having consulted with several external providers, we have estimated the costs for the first year to be around €25,000. In the second year, when we will be able to start selling and receive our first income, the most important expense item will be salaries. The idea is to have 3 full-time employees (including the founders) with a very tight salary (3*20,000). We also plan to start making the first investments in sales and advertising in order to reach as many customers as possible. In the coming years we expect to scale up our sales exponentially as this will be our main objective. Obviously, this will mean an increase in costs, as we will need more resources to be able to sustain this growth, and this is reflected in the projections. Another noteworthy fact is that during the first four years in business, the net income will be negative, essentially meaning we will be losing money. However, a priori, this fact does not worry us too much as it is common in start-up companies. In these cases, the aim is to maximise growth at the cost of compromising the profitability of the business. This is so because in these early stages, the greatest value creation is generated through having an exponential increase in turnover and not in being able to generate profits. However, this means that we will need funding to be able to have cash and to be able to continue to operate normally. During these first years we do not plan to apply for any type of loan, so in no case will we incur financial expenses. There is the possibility of using part of the cash to invest in complex products, but it is difficult to project both in terms of the amount of capital that could be allocated and the length of the investment. As mentioned, the first four years we will end up with a negative cash flow due to the lack of revenue and high operating expenses. From the fifth year and onwards we expect to be cashflow positive, ending up with more than 3.4M in cash by the end of year 6. At that time, we will consider making a considerable investment in furniture, increasing share capital and distributing dividends. In addition, it would be a great moment to start looking into potential exit options to return the investment to our investors. Memorandum June 26, 2023 pg. 68 7.2. Revenue model The starting point for building any type of financial projections is to define the revenue and business model to predict how much revenue we can expect to have. For that, we took into account the services which we expect to offer to our costumers to then define the pricing of the different options. After having done a thorough research of the market and comparing with other competitors, we have set the pricing strategy to be the following: Service Pricing Forum Access (Saas Revenue Model) €199/year (billed monthly) Courses €99/course In-Person Events €299/event Table 9: Pricing strategy 1. Forum Access: This service will grant the client full access to the forum in the platform, where he/she/they/them will be able to interact with other existing users and our own industry professionals to resolve any doubts or questions that they may have or that may arise. The price to access the forum will be €199/year, but it will be billed monthly with a €16.60 invoice. Even though we plan to charge the client on a monthly basis for this service, we will expect the client to give us a full year commitment to the service in order to access it. Building this service following a Software as a Service (SaaS) revenue model will offer several financial benefits. The key advantage is that it will generate recurring revenue. This predictable and recurring revenue stream provides stability and improves cash flow visibility. In addition, it allows for more accurate financial forecasting and helps in building a solid foundation for sustainable growth. 2. Courses: As a second alternative service we intend to create a series of courses related to personal finance covering the most relevant topics. These courses will be fully online and in pre-recorded format. The idea is to partner with specialists in each topic and provide them with the necessary resources to create the courses. In terms of remuneration, we will agree with these professionals to pay them a 15% commission for each course sold. It is important to note that this cost is imputed in the COGS line within the P&L presented above. This agreement will be valid indefinitely. The retail price will be €99 and will be paid by the customer in a one-off Memorandum June 26, 2023 pg. 69 payment. This payment will grant full access to all the course content, which will also be accompanied by extra material such as excel models to help them apply all the knowledge gained during the course. 3. In-Person Events Finally, and with the main objective of promoting the creation of a powerful, participative community and giving all members the opportunity to network, we intend to create face-to-face events on a quarterly basis. These events will consist of one or two days, where we will invite different personalities and well-known people from the finance sector to come and give talks on relevant topics. These events are likely to be held in locations such as hotels or event venues and will also include a lunch/dinner for all attendees. These events will initially cost €299 but this may vary slightly in the future depending on the costs associated with organising them. In this line, it is important to note that this service is by far the one with the lowest gross margin, as the associated direct costs are much higher. These costs have also been imputed in the COGS line of the P&L. 7.3. Assumptions In order to create these financial statements and to be able to project them 6 years ahead, I had to make a number of assumptions, since being able to determine what the revenues and costs will be so many years in advance is practically impossible. It should also be noted that this is standard practice when making financial projections. What you do is take market standards, taking into account the type of service you offer and the industry you are in. In other words, an exercise is done to quantify what growth can be expected and what are the average costs that can be incurred to finance that growth. The assumptions made to build this projection have been highlighted in green and are situated in the right column of the P&L. In addition to the green figures, the other assumption which has been made is the one related to how many customers will we be able to capture along the studied years. Let’s explain them below: 1. Number of customers: The starting point to build these accounts has been to determine the potential number of customers that we will be able to acquire in the coming years. To do so, we have taken into account the number of the Spanish population which would fit within our target audience and the market share that we can expect to capture. Memorandum June 26, 2023 pg. 70 (Instituto Nacional de Estadística (INE), 2023). With this in mind, we calculated the line referenced as ‘Recurrent Users’ in the P&L. This represents the number of customers which we expect to have for the Forum service. Once this figure was projected, I extracted the Growth multiple, which showcases how much our customer base increases throughout the different years. Next, once we have defined the number of users we will have in our forum, I have proceeded to define two more multiples in order to establish how many clients we will be able to have in the other two services. These two multiples are as follows: - Courses sold: Nº of recurrent users * 1.8x (Composed of 1x + 0.8x) o 1x: Every user of our forum will purchase at least one course. o 0.8x: External customers who, even though they will not be part of the forum, they will purchase a course. - In Person Events: Nº of recurrent users * 5% * 4 o 5%: 5% of the members of our forum will attend in-person events. o 4: Quarterly events → 4 events/year. Once we have the 3 categories defined with how many customers each service will have, we have multiplied these figures by the price of each service and obtained the three revenue lines: ‘Saas revenue’, ‘One-Time Payments’ and ‘Events’. 2. COGS: In order to calculate the combined Cost of Goods Sold (COGS) for the 3 different services we have done the following calculation: - Forum (Saas revenue) – 10% COGS - Courses (One-time payments) – 15% COGS - In-person Events – 50% COGS Average: 𝐶𝑂𝐺𝑆 (%)= 10%+15%+50% 3=25% − 𝑅𝑜𝑢𝑛𝑑𝑒𝑑 𝑡𝑜 30% 𝑡𝑜 𝑏𝑒 𝑐𝑜𝑛𝑠𝑒𝑟𝑣𝑎𝑡𝑖𝑣𝑒 By multiplying the revenues by the COGS %, which is equal to saying gross margin %, and then subtracting that number from the revenue we obtain the gross profit, which is 70%. 3. Salaries and headcount The headcount (nº of employees) has been estimated by projecting a growth associated to the growth of revenue. In the first years, when processes are less efficient and lots of changes are occurring, the growth of headcount is more relevant, whereas it stabilises over the years. On the other hand, we have Memorandum June 26, 2023 pg. 71 established an average salary of €40,000/year. As can be seen, it is a higher figure than the Spanish average, but considering the technological base that the company that we want to build around the platform will have, we can foresee that we will have a high expense in salaries to be able to attract quality talent. (Business Publications Spain S.L., 2022) 4. Sales and Marketing 10% of sales for each of the two categories, that is, 10% for marketing and another 10% for sales. These are market standard figures. 5. Rent This will mainly be composed of the office rent plus the associated expenses such as water, gas and electricity bills. We expect the rents to be: - €15,000 for the second year - €20,000 for the third year - €70,000 for the fourth and fifth year - €140,000 for the sixth As the team grows, our offices will do too. This will mean a considerable increase in rent expense. 6. Other Operational Expenses 15% of sales. This will include any other miscellaneous expense which has not been categorized in any of the already mentioned categories. Industry standard. 7. Depreciation and Amortization 5% of sales. Considering the technological base that the organization will have and the infrastructures we will have available, the cost of amortization and depreciation will be very low, since the intangible asset will be practically nil. 7.4. Funding Based on the P&L projections, it is evident that the business will experience negative cash flow during its initial four years, indicating a loss-making period. To continue with the business plan, external funding will be necessary. The projections indicate an initial investment requirement of €100,000. However, obtaining funding from professional investors, such as venture capital funds, may not be feasible at this stage since the business will not have a viable product and will be building everything from scratch. Memorandum June 26, 2023 pg. 72 To address this funding challenge, it is advisable to consider investing funds from the founding team and then explore a friends, family, and fools round. In this round, the objective would be to achieve a 20% dilution, resulting in a PRE-MONEY VALUATION of €500,000. This initial investment will provide the necessary capital to kickstart operations and develop the product. As the business progresses into year 2, an additional €550,000 of funding will be required to maintain sufficient cash reserves. At this stage, with a built product, traction, and considerable revenue, it becomes more feasible to raise funds from professional investors. Similarly to the first round, we would be targeting a 20% dilution, which would result in a pre-money valuation of €2,750,000. It is crucial to highlight that the second funding round will be instrumental in achieving profitability by year four. With the infusion of capital and a developed product, the business will have the potential to generate sustainable revenue and reach a point of financial stability. Furthermore, once profitability is achieved, the runway for the business becomes infinite, providing opportunities for growth and continued success. Overall, securing external funding is essential to navigate the initial loss-making period and ensure the long-term viability of the business. The combination of initial investments from the founding team and subsequent funding rounds will provide the necessary resources to drive growth, profitability, and sustainability in the years to come. Memorandum June 26, 2023 pg. 73 8. Environmental and Social Impact Assessment Conducting an environmental and social impact assessment when developing a project is of utmost importance for several reasons. An environmental and social impact assessment helps ensure the project aligns with sustainable practices and principles. It allows for the identification and mitigation of potential negative impacts on the environment and society, promoting long-term sustainability. In addition, many jurisdictions require environmental and social impact assessments as part of the regulatory and permitting processes for projects. Conducting an assessment ensures compliance with applicable laws and regulations, avoiding potential legal issues and penalties. It will also help identify and evaluate potential risks associated with the project's environmental and social aspects. It enables proactive risk management by implementing appropriate mitigation measures to prevent or minimize harm to the environment and society. Another important topic to talk about is that demonstrating a commitment to environmental and social responsibility through impact assessments enhances a project's reputation. It fosters trust among stakeholders, including investors, regulators, customers, and local communities, who value sustainable and socially responsible practices. 8.1. Environmental Impact The creation and implementation of an online education platform focused on personal finance and investment can have a positive environmental impact in several ways: 1. Reduced Paper Consumption: Online platforms eliminate the need for printed materials, such as physical textbooks and handouts. By providing digital resources, the platform can significantly reduce paper consumption, leading to savings in terms of trees, water, and energy used in paper production. 2. Lower Carbon Footprint: Online education eliminates the need for commuting to physical classrooms, reducing carbon emissions associated with transportation. Students and instructors can access the platform from anywhere, minimizing the environmental impact of daily travel. 3. Energy Efficiency: Online platforms generally require less energy compared to traditional brick-and-mortar educational institutions. The energy consumption Memorandum June 26, 2023 pg. 80 been able to make informed decisions regarding the most suitable technological framework for the platform. This in-depth exploration has shed light on the significance of leveraging appropriate technologies to enhance the learning experience and facilitate effective knowledge dissemination. On another note, this research has emphasized the complexities and challenges associated with creating educational content and operating within the education industry. Recognizing the importance of providing accurate and valuable information, I have developed an awareness of the need for rigorous content development processes, ensuring the delivery of high-quality educational resources. Additionally, the dynamics and intricacies of the education industry have revealed the necessity of continuously adapting to changing market trends and aligning with the evolving needs of learners. BIASED APPROACH It is crucial to acknowledge that the solution proposed in this thesis, aimed at designing a financial education platform to address the issue of insufficient financial knowledge and skills in the population, is not the sole viable option. In reality, there exist numerous other approaches that could also be considered valid. However, a conscious and deliberate decision was made to adopt a more "capitalist" perspective for the proposed solution. The primary objective was to promote self-management among end consumers, rather than relying on a public entity such as the government to assume responsibility—an alternative and reasonable approach. Hence, it can be concluded that the project's focus has been biased, driven by the belief that this particular approach aligns best with the nature of the problem at hand. By adopting a capitalist approach, the intention was to empower individuals and foster a sense of personal responsibility regarding financial education. This approach emphasizes self-sufficiency and independence, enabling individuals to proactively enhance their financial knowledge and skills. It encourages users to take ownership of their learning journey, making informed decisions and actively seeking out the necessary resources and educational materials provided by the platform. However, it is important to note that alternative approaches, such as government-led initiatives or collaborations with public entities, could also contribute significantly to addressing the issue of financial literacy. These approaches may offer a broader scope of resources and support systems, particularly for individuals facing significant barriers or limited access to financial education. Memorandum June 26, 2023 pg. 81 In conclusion, while the biased approach taken in this thesis focused on a capitalist solution to enhance financial education, it is crucial to acknowledge that alternative approaches exist and may also be valid. The decision to emphasize self-management and individual responsibility stemmed from the belief that it offers a practical and viable option given the nature of the problem. However, future research and considerations should explore diverse approaches, including collaborations with public bodies, to create a comprehensive and inclusive solution that caters to the diverse needs of individuals seeking to improve their financial knowledge and skills. POINTS TO BE IMPROVED While the objectives initially set for this project have been achieved, it is essential to acknowledge areas that require further attention and improvement. One significant limitation of this thesis is the constrained resources and knowledge available for developing the project. As a result, certain areas, particularly education and technology, may not have been explored in as much depth as desired. To address this, future work should involve a broader research scope and collaboration with experts in relevant fields, enabling a more comprehensive understanding and implementation of the online education platform. Another critical consideration is the distinction between conceptual design and actual platform implementation. While the strategic plan offers a solid foundation for the platform's development, the absence of a tangible product limits the ability to evaluate its success definitively. It is imperative to recognize the importance of transitioning from conceptualization to implementation, allowing for iterative improvements based on user feedback and market validation. This shift will enable a more accurate assessment of the project's viability, scalability, and user acceptance. Furthermore, the feedback received from investors highlights the need to address certain aspects before the project becomes investable. The identified areas for improvement include refining the platform concept, validating the business model, strengthening the team, and conducting further market research. By addressing these recommendations, the project will have a higher chance of attracting investment and gaining traction in the market. Additionally, this project has revealed a significant weakness in terms of defining a strong differentiating factor from existing solutions in the market. It has become evident that a clear strategy to set the platform apart from competitors has not been properly articulated. Memorandum June 26, 2023 pg. 82 Considering the prevalence of scams, pyramid schemes, and other fraudulent activities within the financial online-education landscape, a solid and effective strategy to tackle this problem has not been sufficiently developed. To address these shortcomings, future efforts should prioritize the identification and implementation of unique features, services, or approaches that offer distinct value to users. This could include innovative teaching methodologies, personalized learning experiences, or partnerships with trusted industry experts. Moreover, a comprehensive strategy to combat fraudulent practices should be devised, involving strict content verification processes, proactive monitoring systems, and collaboration with regulatory authorities to ensure a safe and trustworthy learning environment. In conclusion, this bachelor's degree final thesis has provided me with valuable knowledge and insights into the education industry, strategic planning, and the complexities of creating an online education platform focused on personal finance. The exploration of the Edtech sector, combined with an understanding of project management principles and strategic business planning, has equipped me with a comprehensive skill set to embark on future entrepreneurial endeavours in the field of financial education. By recognizing the areas for improvement and leveraging the gained knowledge, I am confident in the potential for this project to address the critical issue of financial literacy and empower individuals to make informed financial decisions. Memorandum June 26, 2023 pg. 83 11. Future Developments This project is not yet finished. The research conducted throughout the development of this thesis is part of a broader academic or scientific conversation, so the work done is not an isolated event but rather contributes to a larger body of knowledge. By discussing potential avenues for future research, I want to demonstrate that this work is part of an ongoing process and that there are still unanswered questions or areas for improvement. Based on the conclusions drawn from the previous analysis, the following defined actions can be taken to address the identified problems and improve the project: 1. Enhance Research Scope: Going forward, more resources and time should be allocated to conduct thorough research in areas where knowledge has proven to be limited, such as education and technology. This could be easily done either by collaborating with experts or industry professionals to gain deeper insights into these subjects or by reinforcing the team adding key roles such as a CTO, which would help with the technological aspect of the issue, or a professional learning instructor, which would help us in the educational side of it. By doing the above, we would ensure a more comprehensive understanding of the online education landscape and technological solutions available, while making the project sustainable in the long run. 2. Transition to Implementation: A second aspect to focus on would be shifting focus from conceptualization to platform implementation. Develop a tangible product that users can interact with and provide feedback on. This will enable iterative improvements and allow for a more accurate evaluation of the platform's success and user acceptance. 3. Develop a Unique Value Proposition: Next, a strong and clear differentiating factor should be defined, in order to set the platform apart from existing solutions in the market. Identify unique features, services, or approaches that offer distinct value to users. This could include innovative teaching methodologies, personalized learning experiences, or partnerships with trusted industry experts. In this case, it will be crucial to be able to emphasize the importance of a safe and trustworthy learning environment by implementing strict content verification processes, proactive monitoring systems, and collaboration with regulatory authorities. 4. Continuously Adapt to Market Trends: Stay updated with the latest trends and developments in the financial online-education landscape. Regularly assess market dynamics and identify emerging needs and preferences of learners. This will allow Memorandum June 26, 2023 pg. 84 for the adaptation of the platform's content and features to cater to evolving user demands and ensure its relevance in the long term. 5. Seek User Feedback and Iteratively Improve: Another important aspect to work in the future will be establish channels for collecting user feedback and actively engage with the platform's users. Incorporate their suggestions, address their concerns, and make iterative improvements based on their needs and preferences. This will foster a user-centric approach and enhance the overall user experience. 6. Collaborate with Public Entities or trusted partners: Lastly, we want to consider collaborations with public entities, educational institutions, or trusted partners to further strengthen the platform's credibility and broaden its reach. 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