The FinTech space has raised over $13 billion just in the first quarter of 2021. From banks to digital loans, e-commerce payments, digital currencies, FinTech is big! Not to mention the hullabaloo around Bitcoin. In the last couple of years, it has made Cryptocurrency and blockchain, the talk of the town. And just like that, the technology behind it has become the buzzword in living room discussions. Therefore, with FinTech already gaining momentum in the last decade, it’s become imperative for the common man to familiarise himself with the concept.
What is FinTech?
Simply put, FinTech is the combination of finance and technology. FinTech is the name given to the employment of technology to help businesses and consumers manage their financial processes with algorithms and software on personal devices. Further, it refers to modern tools and innovations that are being used to improve and automate the delivery of monetary services.
While it may seem like an intimidating new-age concept, the term refers to the modernization of banking and transactions. It started with digital money, and evolved into online trading, phone banking and easier transaction models. We’ve seen an explosive growth in the FinTech industry, which now encompasses Cloud Computing, Data Analytics, Cyber Security and Artificial intelligence (AI).
What do FinTech companies do?
According to the International Journal of Innovation, Management and Technology, FinTech can be considered “any innovative ideas that improve financial service processes by proposing technology solutions according to different business situations, while the ideas could also lead to new business models or even new businesses.” (Leong, Kelvin.; Sung, Anna (2018). “FinTech (Financial Technology): What is It and How to Use Technologies to Create Business Value in FinTech Way?”)
Simply put, FinTech companies make financial services more accessible to the layman. The scope of a FinTech conglomerate may include traditional banking transactions, and/or embody avant-garde financial technologies too. Undoubtedly, start-ups and industry-changing tech corporations are at the forefront of disruptive industry practices. However, traditional companies and banks have been quick to adopt FinTech to remain relevant. While new companies offer inventive consumer-centric concepts like digital lending, mobile payments, CryptoCurrency and blockchain, traditional banking, saving, trading, insurance and investments continue to escalate by adopting Machine Learning (ML) and Artificial Intelligence (AI) concepts.
In recent times, with a shift towards data and personalization, the umbrella term FinTech has expanded to include a wide range of companies from different industries. Whether it is the retail banking sector, education, charity, fundraising, or even management, any company that aims to offer consumer-centric, technology-driven financial solutions pertains to FinTech.
Why is FinTech relevant?
The global pandemic of 2020 became a catalyst for the rapid espousal of technology to minimize human interaction, amplify consumer comfort, and help businesses adapt to a hitherto unfamiliar phenomenon. A recent report (McKinsey Digital: The COVID-19 recovery will be digital: A plan for the first 90 days) stated that the world has vaulted five years forward in consumer and business digital adoption in a matter of around eight weeks, and that online activities and transactions are no longer a matter of convenience but a necessity. “First, customer behaviors and preferred interactions have changed significantly, and while they will continue to shift, the uptick in the use of digital services is here to stay, at least to some degree,” says the report. The global FinTech market was worth USD $127.66 billion in 2018, and it is expected to reach USD $309.98 billion by 2022. (PRNewswire.com)
Why FinTech has become an integral aspect of conducting business in the post-COVID world
- The disruptive nature of FinTech helps transform traditional business concepts, creating a new breed of industry leaders.
- The FinTech industry is innovative, scalable, and adaptive to a range of industries. The adoption of financial technology is a global phenomenon, and can change the way companies conduct business.
- FinTech offers quick, convenient and transparent modern-day solutions. Big data and Artificial Intelligence (AI) offer a high degree of personalization for the consumer. Therefore, the amalgamation of services with AI-powered offerings enables advanced marketing practices.
- FinTech services are cost-effective, flexible, accessible and inclusive. (A Juniper Research study found that using chatbots will save banks USD $7.3 billion globally by 2023, up from an estimated USD $209 million in 2019). Loans, payments, insurance and crowd-sourcing are no more a privilege for the select few.
- With the expansion of cyber security, FinTech offers more safety and compliance with data, than traditional services.
- Above all, it is great for the economy. Implementation of FinTech creates a healthy environment for start-ups. It helps pump cash into the market, and creates new jobs prospects.
Should you get trained in FinTech?
FinTech is at the core of the industrial revolution, thus offering an exciting work environment and job opportunities. In an environment laced with start-ups and a scorching race for funding, building and innovating, it only makes sense for driven professionals to get trained in modern methods for delivery of financial services.
We now view money in digital terms; mobile banking, Blockchain and Cryptocurrency are used in everyday conversations. With the consumer taking centrestage, hyper-personalization through technological tools is an inescapable mandate for all businesses. Not just accounting and finance experts, but executives from sectors like communication, marketing, HR, and leadership roles need to train in FinTech. A thorough understanding of computing technologies, data science and risk compliance will hold you in good stead and help you innovate.
How courses in FinTech can accelerate your career
You can assimilate your existing skill set with the knowledge of specialized software and algorithms, thus, putting your career on the fast-track. How? Emeritus offers a wide range of courses in FinTech. We collaborate with renowned finance institutions to bring carefully-curated programs, where industry stalwarts hand out core concepts in value creation, forecasting and investing. We’ve designed advanced modules specially designed for working professionals. The modules come with insights, hands-on training and in-depth capstone projects in technologies like Programming, Blockchain, Cyber Security and Cloud Computing.
The right pedagogy in an advancing industry like financial technology will empower you, and put you in a position of learning and progression. As a burgeoning sector, it offers relentless scope in a variety of roles. Some of the key functions you can explore in FinTech include:
- Data Scientist
- Blockchain Expert
- Risk Compliance and Information Security Professional
- Marketing Executives
- Communication Experts
- Operations Managers
- Support functions
As FinTechs grow, there will be an increasing demand for leaders with expertise in the technical know-how. There will be opportunities in roles, not directly related to technology, and yet, pivotal to the organization. Therefore, experts in related fields, with an understanding of key financial technology concepts, will flourish.
What is the future of FinTech?
Emerging trends are steadfastly pointing towards the fact that FinTech is here to stay. For instance, digital-only banking is fast becoming a more immersive, more responsive option. Insights from Data and Artificial Intelligence continue to improve consumer satisfaction. Additionally, better security with the use of Blockchain technology is redefining businesses. Don’t just sit back and watch. Participate in the revolution as Machine Learning and Computation continue to offer disruptive remedies to new-age consumers through FinTech.
By Swati Vikamsey