Banking and Finance as it was known earlier has undergone a sea change over the recent years with the addition of the layer of technology over it. FinTech is undoubtedly one of the most disruptive ideas that has changed the way the world looks at Finance. Every aspect of the financial world of transactions from direct lending to investment banking is now being adopted and using a whole lot of technology to improvise and optimize the financial resources and returns.
New generation products like cryptocurrencies and advanced technical offerings like blockchain technology that have the potential to change the way consumers look at finance are an in thing now. Though some of these are perceived to be difficult to handle and prone to wild swings and crashes, they are here to stay and will define the future of finance backed by technology.
A recent report on the Future of FinTech and Banking by Accenture estimates that Global FinTech Investment will rise to USD 500 billion before the decade ends. FinTech (Financial Technology) is not only going to be an enabler but also the engine that will drive the Financial World.
FinTech as a business segment has evolved rapidly over the last few years and it has generated a lot of interest among job seekers, who are keen to pursue exciting roles in this space. In fact, it has become quite fashionable to showcase a stint in this space, be it a successful or not so successful, in order to present a diverse career.
Newer business models like peer-to-peer lending, robo-advisors, cryptocurrencies, investment management, big data and online banking have evolved with time leapfrogging on the ‘tech’ side of FinTech.
Innovation continues to transform the FinTech space and will do so for the foreseeable future. Job-seekers eager to become a part of this growing domain are those who seek to redefine traditional methods with evolving technology. From programming to AI and beyond, a career in FinTech is teeming with endless opportunities.
Cybersecurity, AI, application development, risk and compliance management and data science are areas in focus with a significant shortage of talent. Anything job seekers do to gain experience will be valuable in reaching their career goals.
Top FinTech Careers:
- Cybersecurity: Cybercrime is on the rise and not stopping anytime soon. Cybersecurity Ventures estimates that cybercrimes will triple the number of open job positions in the next five years alongside projections that there will be 3.5 million unfilled cybersecurity positions by 2021. The demand for talented cybersecurity professionals is at an all-time high and is projected to continue rising. The FinTech domain needs experts and specialists to develop security measures that thwart malicious threats.
- Blockchain Developers: A whopping 30% of finance companies expect to incorporate blockchain technologies into their strategy by the end of 2020, according to PwC. Although this distributed ledger technology was initially developed to account for the cryptocurrency Bitcoin, the FinTech sector has found other uses. For instance, one solution includes the elimination of business intermediaries to make transactions less costly, faster and more efficient. Some authorities also foresee its potential to provide more secure methods for records management.
- Risk and Compliance Management: There is a growing trend of FinTech businesses pursuing Bank charters, and in turn, Banks are nurturing relationships with FinTech companies to fulfill consumer demand—a total transformation of both the FinTech and traditional financial services domain. Both fields have been affected by new rules and regulations amid the evolution of technology. As a result, the risk of regulatory scrutiny and obligations have increased simultaneously, causing the need for compliance experts to rise. In addition to compliance, risk control managers are also in demand. More financial companies need specialists to analyze, prevent and mitigate risks, including regulations, operations and crime.
- Quantitative Analysis: These super scientists, also known as "Quants," are the brains behind complex trading programs. Specialists in this area guide securities firms, investment banks and hedge funds in making informed decisions about markets, pricing and financial risk. The rise of FinTech startups, machine learning, deep learning and AI will only intensify the demand for quantitative analysts. These specialists in math, data science, finance and application development will create the algorithms of the future to help companies reach their financial goals.
- Artificial Intelligence: In recent years, Artificial Intelligence (AI) and Machine Learning (ML) have helped businesses make fast and critical decisions with data and insight. Across the industry, organizations have turned to these technologies to transform their business through AML pattern detection, chatbots, risk management, fraud prevention, network security and investment predictions. As per McKinsey & Company, 43% of organizations report struggles with AI strategy, and 42% report a shortage of AI talent.
While these are some of the focal areas that will remain in tremendous demand over the near future, there is more to come. Technology has taken rapid strides changing by the minute in some instances and there is no way that one can guarantee it will not undergo another round of change any soon. Be prepared, be successful!!