Top 5 Areas to Explore in FinTech Careers

Like every other industry sector, the financial landscape is changing remarkably. With constantly evolving technologies, new global regulations, and increased investment, the industry is growing faster than ever. Of all the trends, the introduction of FinTech remains the most prominent, redefining and disrupting financial services and products in the last decade. However, since it is new, there are bound to be little or no understanding of how FinTech works and serves the changing market needs. Like any new revolutionary technology, there are certain expectations, beliefs, and predetermined notions associated with FinTech, thus fuelling many myths and rumors. To be able to understand the mechanisms of FinTech better and exploit its full potential, we must dig deeper and debunk those notions, one myth at a time.

Myth #1: All FinTechs are the same

Fact:

FinTech, by its very definition, is a broad spectrum of things, involving different kinds of programs and applications. But, more often than not, they are categorized under the same head. As mentioned earlier, the finance industry is radically changing and emerging with newer products and services like money transfer, wealth management, lending, payments, to name just a few. And each of these subdomains of finance can make the most out of FinTech applications, designed for the respective function. Hence, they cannot be the same. Like every other technology, no two financial tech tools are designed the same way or can fulfill the same need. So, before you decide to opt for a FinTech solution for your finance business, it is important to explore the others and see what suits your business architecture and meets your and your customer’s needs.

Myth #2: The FinTech industry will squash banking.

Fact:

There is a popular rumor going around that banks and FinTech services are at loggerheads and FinTech will most probably win the battle by bringing the banking system to an end. This is perhaps the biggest misconception surrounding this new technology. FinTech evolved as a natural course of development in the banking process. The technology is rather a catalyst to the banking system to streamline and expedite processes and functions and enhance the customer experience. This fear is very much like that of AI, when it was first introduced, making people believe that it will wipe out human intervention. In reality, it assisted manual functions and enhanced productivity and performance. Similarly, with innovations in FinTech, banking services are only going to evolve and become more efficient and take the sector to the next level.

Myth #3: Fintech is all about money

Fact:

Perhaps the words Finance and Technology together have led people to believe that it has everything to do with money. But it is a myth. Although about 80% of FinTech investments* (global) so far have been in lending and payment systems, it is still not a defining parameter. FinTech’s applications reach way beyond monetary transactions and extend to insurance, fraud detection, investment management, marketing provisioning and so on. FinTech also has immense capability to provide refined data analysis, which is becoming increasingly popular among financial service enterprises.

Myth #4: FinTech comes with a lot of risks

Fact:

Being a digital product, there is a lot of concern regarding the security protocol of FinTech. But that also applies to any digital tool or new technology product. However, if we see beyond the facades, evolved technologies like cloud computing have ample capabilities to keep FinTech secure. Also, as with any other tech innovation, there is a constant effort on managing security issues at every step and addressing threats or probable areas of hacks. With advanced security measures, fraud detection, and better encryption standards, FinTech will soon prove to be a reliable and convenient platform.

Myth #5: Newer regulations can be detrimental to FinTech

Fact:

Most people think that like many new technologies, FinTech is just a ‘bubble’ and with changing economic regulations, it will soon burst. Government regulations are inevitable. But that doesn’t mean it can wipe out an entire system that is being built. FinTech leaders are quite aware of these possibilities and are leaving no stone unturned to partner with the Government and make it an integral part of economic development. Also, in many countries, the Government is actively involved in developing FinTechs and exploiting its potential for better financial services to the citizens.

The world of finance is diverse and can reap a lot of benefits from FinTech if applied right. But only when one understands it well and avoids the myths, can one see the real advantages. With many new trends like dedicated FinTech centers, specialized funding for FinTech companies, AI-powered insights, and growth of predictive analytics, this technology space will only grow bigger and better.

Just a few years back, it was hard to imagine a bank going paperless and branchless. It was almost fictional to think of money transfer being done instantaneously–whether within a city or across borders. It was magical to conjure up the image of a loan that can be availed with just a few clicks and minimal documentation. Yet, all these are part of the new banking, financial services, and insurance (BFSI) sector impacted by FinTech today. In a short period, the BFSI sector has embraced so many technology shifts. Today the sector has changed so much with the adoption of,

• Core banking technologies
• Decentralized systems
• Alternative and instant KYC mediums
• Chatbots for customer service
• Intelligent processes
• Automated functions
• Smart contract-based banking offerings and systems
• Personalized products
• Customer-life-cycle technologies
• Robo-advisory tools
• Hyper-personalization technologies
• Biometrics Identity Management
• RPA–Robotic Process Automation and
• Machine Learning and Natural Language Processing.

The tech impact on the BFSI sector 

FinTech has redefined the industry beyond recognition. It has wiped away long queues, manual exhaustion, bureaucratic fatigue, and process-delays. FinTech has leveraged Artificial Intelligence (AI), Blockchain, and Cloud in such a pervasive and swift way that it has cut costs and created new revenues.

As per the PwC Global FinTech Report 2019, 48 percent of Financial Services organizations have embedded FinTech fully into their strategic operating model, while 37 percent of Financial Services organizations have incorporated emerging technologies into the products and services they sell. These developments raise a few questions. 

• Where does this change leave the senior Finance professionals, though? 
• What about all the skills and knowledge they have amassed and polished in all these decades before FinTech shook the sector? 
• Should they be looking for new roles? 
• Should they switch to another industry where legacy skills may still be relevant? 
• Should they be planning early retirements already?

For them, this is the right time to get a little braver and smarter to deal with the current predicament. It’s both possible and imperative to evolve their kit of competencies considering the new world order. They can add to and augment their Banking and Finance expertise by learning the new tools that AI, automation, and Cloud present. To add to that, if you are already in a C-Suite position, it is even more critical to gain the right FinTech chops so you can help your organization stay relevant and robust in the unfamiliar landscape. At this point, it is interesting to note,

• Multinational and large corporations are more likely to have a C-suite executive responsible (42 percent), while the number stands at only 29 percent at middle-market companies. 
• Organizations with revenues of USD 5bn-plus are significantly more likely to have a C-suite executive responsible (44 percent). For those with revenues of less than USD 1bn, it is 31 percent.

As a senior Finance professional, getting up to speed on the new reality is crucial.

Learn, adapt and grow

To upgrade themselves with newer capabilities and stay relevant, senior Finance professionals can tap into some well-crafted FinTech courses available at many good institutes today. Some of these courses are designed with a lot of flexibility and ease to take them online in an interactive and engaging environment, coupled with rich networking opportunities with industry experts and peers. 

Once armed with the FinTech expertise they lack now, these senior Finance professionals can leap forth with so many advantages hard to catch up to for even the sharpest FinTech natives today. The geeks’ technology know-how can be exponentially empowered with senior finance professionals’ rare and hard-earned expertise. It opens up so many avenues in strategic, operational, and management roles that the new breed of FinTech companies want to fill as soon as possible.

There is a shortage of senior expertise at even the most future-forward FinTech company. It has been observed that 75 percent of Financial organizations are creating jobs related to Fintech, but 42 percent struggle to fill the roles. In the PwC 22ND Annual Global CEO survey, one finds that if ten years ago, only about 50 percent of Financial Services leaders saw skills shortages as a threat to their growth prospects, the number has risen to a staggering 80 percent today. It is going to worsen as disruption gets deep and wide.

Convert turbulence into velocity

As much as two-thirds of Financial Services organizations are concerned about the availability of FinTech skills among their senior leadership team and across the sector as well. The situation is full of both concerns and opportunities–as you can surmise reasonably.

This is the right time to learn the new language that the FinTech tribe speaks in. Once that’s in place, you can bank on your rich métier with new confidence and power.  With all that experience under your belt, your learning curve would be very short. 

India is among the fastest-growing FinTech markets globally, and with 87% FinTech adoption, India shares the top spot with China globally. 

Boom times for FinTech in India

According to the findings from a study by Boston Consulting Group (BCG) and FICCI, Indian FinTech companies are poised to become three times as valuable in the next five years, reaching a USD 150-160 billion valuation by 2025. 67% of over 2,100 FinTechs have sprung up just in the last five years. The segment has attracted massive investments, with India emerging as Asia’s most prominent destination for FinTech deals. Increased awareness, government policies, quick onboarding and ease of use, smartphone proliferation and internet expansion, regulatory support, and improved technology are key factors driving rapid Fintech adoption.

Experts share their exciting views on India’s FinTech revolution

So how are professionals gearing up for FinTech?

Innovation, rapid transformation and staggering growth in India’s FinTech space is creating massive opportunities for entrepreneurs and professionals. For several of them, getting into the FinTech industry is not just about vital niche technology skills such as app development. There are other solutions they need to offer an organization to be considered as their next FinTech expert. This entails knowing about public cloud technologies, data science and delving deeper into the realm of machine learning and artificial intelligence. 

Can you get into FinTech without programming knowledge?

Yes indeed. You can build a successful career in FinTech without programming or coding knowledge. Even if you are a non-tech professional, having programming knowledge is not crucial to start and lead FinTech projects. Coding is mainly employed to create new software or change the way things function currently. These changes can be done through programmers. 

Then, what capabilities do you need to build a career in FinTech? 

Organizations in the FinTech industry are constantly looking for expert professionals to fill in critical roles. FinTech professionals don’t really need deep tech knowledge to make it in the field. They require substantial familiarity with the workings of the different underlying technologies to use them for FinTech innovations. 

Some of the important capabilities required to build a career in FinTech include. 

• Blockchain: The expansion of the cryptocurrency industry can be connected to the increasing demand for blockchain experts. As per a LinkedIn study, blockchain was the most in-demand job skill in 2020. With new blockchain solutions being introduced to financial institutions at a growing rate, FinTech professionals need a strong familiarity with its inner workings. 

• Cybersecurity: The development of the online financial services industry has increased the risk of cyber crime, and the startups in FinTech are particularly more vulnerable to these threats. Therefore, cybersecurity professionals are needed to prevent data loss and protect a company’s reputation. FinTech professionals must work along with cybersecurity professionals in the areas of risk management, encryption methods, and digital communication technologies, among others.

“Cybersecurity is critical for the success of digital banking and banks should create the infrastructure to win customers’ trust for all such transactions.”
Ravindra Pandey
Deputy MD and Chief Digital Officer
State Bank of India

• Data Science: The analysis and interpretation of data become crucial in redefining financial services. Data Science yet again relies on machine learning, deep learning, big data, and artificial intelligence. Data science experts analyze the data and provide recommendations and solutions on how data can improve the current services.
• Analytics and Communication: Analytical capabilities will help you grow much further in the FinTech industry. Being able to dissect the problem and coming up with viable solutions is critical expertise. Communication skills are valued in this field, too, because you will have to communicate your ideas to your fellow team members and stakeholders who may not be familiar with the new FinTech landscape. 

What’s the way forward for FinTech professionals?

Tapping into promising career opportunities in the FinTech space entails having an in-depth understanding of how FinTech works and deep expertise. To develop such an understanding and expertise, one needs hands-on learning. That’s why IIM Calcutta and TalentSprint, offer a uniquely designed six-month Advanced Programme in FinTech and Financial Blockchain (APFFB) for professionals in banking, consulting, financial services, insurance, management, and technology, who want to tap into opportunities and shape their careers in the FinTech space. It’s a faculty-led interactive Live online programme with a well-researched curriculum that fosters hands-on learning. The programme has completed 3 cohorts with 450+ participants currently working with 170+ top companies.