As technological development accelerates, technology and financial services converge in financial technology or FinTech. FinTech is reshaping traditional commercial systems, innovating mobile banking, digital payments, investment banking, and online lending platforms. This has created new and exciting opportunities within finance jobs. In this article, we’ll discuss FinTech and how it creates new opportunities in finance careers.
FinTech refers to the application of digital technology to financial services. It includes software, mobile applications, and other technologies that can improve traditional finance systems by automating them for both businesses and consumers. FinTech encompasses everything from simple mobile payment apps to complex blockchain networks that secure encrypted transactions.
Over the last two decades, FinTech has revolutionized many industries, and the COVID-19 pandemic has only further accelerated the rate at which it occurs. Examples include mobile banking, peer-to-peer lending apps, blockchain and cryptocurrency, robo-advising, and crowdfunding platforms.
The world’s FinTech market was worth $194.1 billion in 2022 and is projected to grow with a CAGR of 16.8% from 2023 to 2028. As a result, a range of new opportunities have been created for those interested in the finance sector. Here is an overview of a few job markets:
Companies in the financial sector use artificial intelligence (AI) and machine learning algorithms (ML) to analyze and manage data to make predictive insights, such as forecasting future sales by identifying trends and correlations in customer behavior. This is called predictive analysis, and it helps to streamline operations, increase efficiency, and improve customer experience. AI is one of the fastest-developing fields in finance and is a suitable option if you are qualified in data science, data engineering, and data analytics.
A blockchain is a digital ledger or database shared among a network of computers or ‘nodes’ connected through the internet. They are known primarily for their role in cryptocurrency, such as Bitcoin. Cryptocurrency transactions are fast, secure and maintain a decentralized record of transactions. Each transaction is stored in a ‘block,’ linked together in a chain-like structure, which is why we call it blockchain.
Blockchain is unique because a transaction recorded in a block is complicated to alter or delete, making it a reliable way to secure transactions without depending on a third party. And it is not just limited to cryptocurrency but can secure the data in any industry by making it unchangeable. Blockchain engineers require knowledge of programming languages such as C++ and Java to develop and maintain decentralized blockchain applications like cryptocurrency exchanges.
Cybercrimes are common in the finance industry, which revolves around monetary transactions. This creates a high demand for cybersecurity experts in fintech that can protect data from unauthorized access. As a cybersecurity expert, you might be required to conduct vulnerability testing, keep track of security access and identify any security breaches. As we become more reliant on digital devices, cybersecurity becomes a greater threat to companies which is why it is a good job opportunity if you have the required skills.
With investment from large companies such as Google and Amazon, quantum computing, once just theoretical, is rapidly emerging. Whereas classical computers use bits, a quantum computer uses quantum bits, called qubits, to solve problems too complex for classical computers. A computer using qubits can store more information and function with more efficient algorithms while using less energy than a conventional computer. AI and ML algorithms require immense resources to power, but quantum computing provides an alternative that can support them.
In finance, quantum computing can simulate complex financial systems, such as global markets, enabling accurate predictions about market trends, portfolio optimization, and risk management. In this way, companies can use it to detect financial risk and fraud detection. Another potential use of quantum computing in the finance sector is in cryptography.
Many encryption algorithms currently used to secure financial transactions will likely be broken by quantum computing. At the same time, it can also be used to create new cryptographic techniques resistant to quantum computer attacks. There is significant demand for professionals in quantum computing and other next-gen technology that is only just emerging.
The future of the FinTech industry is bright, and demand for FinTech professionals will likely increase in the coming years. While some technologies in FinTech are still just beginning, it is a field worth investing in if you are interested in finance and are skilled in math, data science, engineering, and programming.