Fintech has transformed the traditional banking and finance industry, disrupting the status quo, even during economic downturns and regulatory shifts. India is now the third-largest fintech market, with over 7300 startups in the segment, supported by an overall funding volume of around $30.2 billion, expected to reach $200 billion in revenue by 2030. Practical skills and knowledge are key to success in the fast-moving fintech industry, and those who can adapt and lead the charge will come out on top. Banks are investing heavily in technology and hiring more IT personnel to implement real-time payment systems, partnering with fintech firms to do so, thus creating many job opportunities in the fintech sector.
Why Work in Fintech
As the financial industry continues to evolve, the fintech sector has emerged as a highly lucrative career option. This is in large part because the banking sector is a major source of revenue and even in a recessionary environment, banks are still performing well thanks to rising interest rates. However, even traditional banking systems are facing several technological challenges as they work to implement real-time payment systems. These include the need to move to the cloud and comply with ISO 20022 requirements, among other trends. To address these challenges, banks are investing heavily in technology and hiring more IT personnel. One way they are doing this is by partnering with fintech firms. As a result, the fintech industry is experiencing significant growth. This makes it an attractive career option, as there are still many opportunities for hiring in this sector. With the continued evolution of the financial industry and the growing importance of technology, the fintech industry is poised for continued growth and success in the future.
A career in fintech allows one to work on digital solutions that improve customer engagement and service delivery through a combination of human-centric and robo-assisted relationship management. With new data and analytics capabilities, fintech professionals have the potential to disrupt traditional banking and financial institutions globally while also advancing innovation in research tools and analytical capabilities for better investment decision-making. The constantly evolving nature of fintech makes it a dynamic and exciting place to work.
Learn the Right Tools
In 2023, cybersecurity and automation remain key trends in fintech. Financial technology use increases the risk of cyberattacks, making cybersecurity a top priority. Robotic process automation (RPA) automates tasks like verification and improves efficiency. Biometric identity, like fingerprint or facial recognition, enhances customer security and convenience. Blockchain technology enables secure record-keeping and is used by fintech firms for various purposes such as tracking transactions and preventing fraud.
These advancements significantly impact the fintech industry and will continue to shape it in the future, creating new opportunities in areas like cybersecurity and data analytics. For example, there are opportunities in commercializing blockchain, and programmers with blockchain expertise are in demand to solve the problems facing its integration into business models. As investing becomes more digitized, the demand for robo-advisors and the programmers who create them will likely increase.
Low-code technologies have gained attention in the fintech industry to efficiently develop financial applications, particularly those related to payments. This presents a valuable opportunity for career development in the field, as individuals entering the industry will have the opportunity to work with and learn the latest low-code toolsets. Additionally, professionals with prior experience in such platforms will find their skills highly valued in the industry. As more financial institutions and fintech companies adopt low-code technologies, the demand for professionals with these skills will continue to rise.
Be a Part of the Change
The ever-changing nature of fintech is seeing big data and automation being superseded by AI and ML. Blockchain technology has the potential to bring more transparency to existing financial systems, as well as make transactions more secure and efficient. Data shows that blockchain deployments will enable banks to realize savings on cross-border settlement of transactions of up to $27 billion by the end of 2030, through cost reduction of more than 11%. This shift will have a significant effect on how financial systems operate and will encourage firms to pay closer attention to regulatory transformation as they embrace innovation.
Legacy solutions used by banks are not suitable for complying with the increasingly stringent regulations being implemented worldwide. Analysts today are spending 90% of their time on data collection and organization and only 10% on data analysis. Regulatory Technology (RegTech) has become an integral part of the Fintech ecosystem to address this issue and come up with solutions which can tackle the latest and most complex regulations, lawsuits and regulatory remediation areas faced by financial institutions (FI) while also reducing the cost of compliance. With 10 – 15% of the workforce devoted to Regulatory compliance, RegTech is set to become a major factor in facilitating compliance management and minimizing regulatory risks in the future.
Curate the Perfect Customer Experience
Technology has greatly improved the customer experience in the payments industry. Customers can now easily make payments through internet banking, mobile payments, and other types of transactions that are securely and efficiently connected. The advent of the “All Customer Access to All Financial Services” model is also providing customers with access to a wide range of financial products and services, regardless of their location or financial status. By using technology such as mobile apps and online platforms, fintech companies can reach customers in underserved or unserved markets, including those in rural areas or with limited access to traditional financial institutions. This can help to bridge the gap between those who have access to financial products and services and those who do not and promote financial inclusion and stability.
For instance, data analysis opportunities can help gather and evaluate customer information, which can help them better understand customer preferences and deliver a more personalized customer experience. Roles such as customer experience specialists can improve various touchpoints in the customer journey, such as the website or mobile app, and ensure that customers have a positive experience when interacting with the company. By hiring professionals with these skills and expertise, fintech companies can develop a culture of “technological supremacy” which will only deliver a seamless customer journey.
A Challenging and Rewarding Career
The opportunities for growth and development are endless, and the potential for high rewards is great. Fintech offers a chance to build a challenging and rewarding career. Fintech companies are often at the forefront of emerging technologies and working in this sector can provide access to the latest innovations, allowing you to stay ahead of the curve.
For more on opportunities in fintech, visit our Careers page.
