Technology has made it possible for people to access financial services quickly and cheaply. In most cases, the term “fintech” refers to a startup project that utilizes new technologies in the financial industry.
Fintech companies develop highly specialized solutions that compete with traditional companies in terms of efficiency and price. Financial technology aims to increase the availability and quality of financial services, reduce risks and costs in the financial sector, and ensure the security and stability of banking processes.
There are three main categories of fintech services: banking, insurance, and investment. They include all technologies that directly or indirectly affect finance: from mobile payments and crowdfunding to interbank transfers and cryptocurrencies.
- Banking
Cryptocurrencies, decentralized solutions, and payment services are being developed as alternatives to traditional banking services. The vertical structure of a bank where the bank is at the top and customers are at the bottom of the pyramid is being transformed into a fintech service that is built around the customer’s objectives and goals. Neo-banks function as an alternative to traditional banks. They have no physical offices, and all monetary transactions are conducted through websites and mobile applications.
It should be noted, however, that the rapid development of technology has also led to collaboration between traditional banks and fintech companies.
- Insurance
The use of fintech services has resulted in a rapid increase in the number of digital communication channels between consumers and insurance companies. Both the user and the insurer benefit from this arrangement.
It has become possible to collect statistical information about possible risks through the use of big data technologies. The traditional insurance market can be completely transformed by new solutions based on blockchain, artificial intelligence, and robotics.
- Investment
In recent years, investment services have become more accessible, understandable, and affordable. Digital investment platforms have made this possible. An algorithm has been developed to create individual investment portfolios based on the interests and preferences of the client. As a result, stock exchange transactions have long been conducted on digital platforms without the involvement of brokers.
As the fintech industry grows, cybercrime also grows. Data leakage and cyber attacks are the main security problems. Therefore, tech startups are developing solutions that protect both banks and ordinary users.
What kind of professionals do fintech companies need?
Fintech is not going to stop developing and already has plans for the future. Thus, it is high time to begin working with fintech startups in order to contribute to the growth of the industry. Take a look at the types of professionals that the industry requires.
Financial/Business Analyst
Having knowledge that the sector is developing is not enough; it is important to know in which direction it is developing. It is the responsibility of financial analysts to study data to identify market trends and make reliable predictions in order to inform investment decisions. The role of a financial analyst involves working with large amounts of data, identifying and analyzing sources of financing for businesses, understanding accounting and reporting, anticipating risks, developing investment strategies, and predicting global economic trends.
Business analysts also analyze business strategies, processes, and IT systems with the aim of identifying inefficiencies and areas for improvement. A business analyst must also possess a solid understanding of statistics, econometrics, modeling, data visualization, and the ability to use specialized software tools.
Blockchain Developer
Fintech is an industry in which this profession is actively developing. Almost all fields can benefit from the use of blockchain as a reliable way to record data. Blockchain technology, cryptography, and cryptocurrencies are especially important to the financial sector.
A blockchain developer should be able to program in Python, C, C++, C#, Go, Node.js, Java or JavaScript; use Ethereum and Hyperledger tools; design, build and deploy blockchain technologies according to the business models and requirements of fintech companies; experience with algorithm development in the field of data security, peer-to-peer networks and cryptography.
Mobile Developer
In order to attract and retain customers, fintech companies actively develop powerful and visually appealing applications. Therefore, application developers will always be needed in this industry. Specialists in this field should know Java, Kotlin, Objective-C, С#, various APIs, Android SDK, REST/SOAP, SQLite, Swift, Apple development guidelines; understand the basic principles of designing and developing mobile applications; know modern algorithms and data structures, and current network protocols.
Product Manager
It is the responsibility of a fintech product manager to oversee all stages of the creation and promotion of a financial product. In order to create a new product, they conduct market research, develop product requirements, outline strategies, recruit a team, launch the product, and promote it.
The product manager must be capable of analyzing the market volume, positioning, choosing marketing channels, calculating costs, understanding pricing, collecting and analyzing data, and understanding agile methodologies such as Scrum, Kanban, and Lean.
Cyber Security Analyst
Fintech companies require experts and specialists in the field of developing security measures to prevent malicious threats. A cyber security expert creates a cyber attack response plan, assesses vulnerabilities, conducts scenario testing to develop security controls, and more.
It is necessary for the specialist to have an understanding of the general principles of programming, know a variety of programming languages, such as C++, ASM, Python, and be aware of the types of vulnerabilities listed in OWASP Top 10 and SANS Top 25.
Quantitative Analyst
The amount of data generated each year sets a new record. Transactions of online purchases, bookings, subscriptions, payments, transfers, and other transactions generate billions of data points, which can be analyzed and interpreted to maximize profits and minimize risks.
Those with expertise in data analysis should be able to implement methods and tools for analyzing large amounts of data and pre-processing (Extract-Transform-Load); be proficient in programming languages such as Python, C++, Java; and be capable of developing and implementing complex quantitative models and analytical tools. A knowledge of search engines and social network analysis is also required.
Getting started with fintech
There is a lot of potential here for the development of specialists in various fields. It attracts people from a variety of specializations, including finance, business, management, development, and engineering. It will be advantageous for you to possess analytical and logical thinking skills, as well as an understanding of the market, in order to stand out among other candidates.
In order to succeed in fintech, you must be prepared to change your mindset. Developers and engineers move directly from problem to solution, while financiers and economists analyze the problem comprehensively and offer great variability.
Therefore, how to start your career in this industry?
- A detailed study of careers is the first step in the process. As soon as you have chosen a narrowly focused specialty, you should acquire the necessary skills and determine whether you are ready to move forward in this direction.
- The second step involves an in-depth analysis of skills that are in demand.
- As a third step, it is important to learn about fintech trends and find a mentor if possible. Some banks are setting up their own fintech labs. Newcomers can gain experience and possibly get a job offer through internships and projects.
- In the final step, you should prepare a resume and send it to companies that are of interest to you. Continually learn new technologies, follow trends, and gain experience.
Why you should pursue a career in fintech
There is a lot of potential for growth with fintech technology. Professionals who aren’t afraid of challenges and delight in interesting work may find it to be a profitable direction.
- You will be able to expand your horizons through this work. A specialist learns more about the financial sector, the economy, and the monetary system.
- Due to the growing demand for fintech solutions and the interest in their development in the near future, specialists in this field will not face any difficulties in finding employment.
- Salary levels in this field are directly related to the profitability of fintech companies’ projects.
- This industry offers many promising careers with professional growth in addition to developers. There are many companies that offer training opportunities that can help you develop relevant skills.
- You will have the opportunity to utilize your creative thinking to create a product that will make people’s lives better.