Find out where the financial technologies sector is headed, and how financial professionals can maximize their opportunities for career advancement.
From cryptocurrencies, blockchain, and artificial intelligence to wealthtech and cybersecurity, financial technology (or fintech) has continued its meteoric rise, dominating the financial industry in 2021. In fact, the global fintech market is expected to achieve a value of approximately $324 billion by 2026, growing at a CAGR of about 23.41% between 2021 and 2026.
What is Fintech?
The term fintech refers to the computer programs and technologies that are used to support or enable banking and finance used by businesses that provide automated and improved financial services. And as it’s grown, fintech has altered consumer expectations and behavior, laying the groundwork for disruption across the financial industry and beyond it.
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Global trendwatchers predict additional growth and disruption for the foreseeable future, and here are a few of the key areas they’re following:
- Cryptocurrency growth is expected to continue, moving into areas including NFTs, alternative asset trading, and support structures, with a more varied range of investors.
- Big data and analytics have aided fintech in creating more personalized experiences and products while also supporting greater operational efficiencies and revenue optimization, so this is expected to remain a plausible growth area.
- Wealthtechs for digital wealth management and investing continue to gain traction, with companies investing in or acquiring these solutions at a rapid rate. This upward trajectory is expected to continue as investment platforms for assets such as real estate, classic cars, and wine make these classes more accessible to standard investors.
- Cybersecurity is poised to continue its ascent as digital transactions and related cyberattacks and ransomware increase. Fraud management, KYC (know your customer) standards, and passwordless security are also expected to be on the minds of investors.
- Small and medium-sized enterprises (SMEs) have adopted fintech for tasks like banking and payments, financial management, financing, and insurance. Looking ahead, SMEs present a growth area that fintech companies can take advantage of, while SMEs have an opportunity to make further use of fintech solutions to promote their own growth, such as using APIs and distributed accounting technologies to achieve process efficiency.
Where Financial Professionals Can Benefit
We know the proliferation of fintech has led to growth across the financial industry and for investors, but what does it mean for financial professionals? Opportunities for career advancement and competitive salaries abound—if you are able to obtain the fintech skills companies are seeking.
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