Reimagining the future of financial markets with Blockchain
Financial technology (FinTech) implies adopting new technologies to improve overall financial services. It could include payments, digital currencies, and so on. The digital economy has paved the way for adopting the latest technologies for streamlining processes and operations, resulting in quick, error-free and easy task completion. Companies worldwide are embracing digitisation for greater competency and building trust to create strategic values for customers and industry, redefine business concepts/models; transform existing processes/systems, and maintain competitiveness. Innovative solutions like Blockchain enable faster data transfer and secured transactions across global industrial players. One sector which could gain from Blockchain technology is the traditional financial markets.
With the financial world evolving and getting more complex, there is greater demand for FinTech specialists to enable the implementation of technologies like Blockchain. The future thus looks bright for those who wish to make a career in FinTech. This blog will discuss Blockchain technology and its impact on the financial sector for career aspirants to kickstart a promising career in FinTech.
What is Blockchain technology?
Blockchain technology is a decentralised network for facilitating cost-effective and secure peer-to-peer transactions. Blockchain uses a distributed ledger technology (DLT) framework for recording each transaction, maintaining the chronology and accuracy of data across a secure and tamper-proof worldwide network. All parties related to a transaction have access to this database, enabling transparency, viewing and independent execution of the business code of count, resulting in efficient transaction execution. Blockchain helps create trust between unknown participants for seamless interactions and eliminates the need for recording activities related to procuring to pay, cash and record-to-report procedures. Blockchain focuses on creating a democratised environment, disrupting the current financial operating and functional ecosystem.
Reimagining the financial sector with Blockchain
Blockchain disruption would significantly impact the financial sector. By implementing Blockchain DLT, transactions can be conducted quickly and economically, eliminating the need for an information repository. Transaction risk also reduces as credit history and source of an asset get directly embedded in the record. A systematic audit trail of transactions helps easily verify trading partners and their terms, thereby effectively addressing disputes. Contracts get executed in real-time. With the shared database, regulators can build new infrastructure and guidelines for managing the financial system effectively. Seamless reconciling of records and greater asset visibility have enabled financial intermediaries to rethink their business strategies and models. For instance, lenders can check the borrower's asset pledged to help them better evaluate the borrower’s creditworthiness and grant of loan. Conducting all financial transactions on Blockchain’s secure and shared platform would help expedition and provide advanced data ledger security and transfer between financial stakeholders.
Implementing Blockchain would mean a decentralised, distributed and transparent solution model across financial services for creating advanced security, traceability and data transfer. The financial sector has already started reimagining its future via Blockchain capabilities for reshaping existing finance and accounting (F&A) operational processes and getting new products to offer.
Opportunities for a career in FinTech
Blockchain aims to integrate digital and conventional mediums/processes constructively, thus offering a high level of automated responses and accessibility. It would enable seamless, secure and error-free global financial transactions between financial actors. Though a few hiccups like scalability, interoperability and legalities are yet to be addressed, opportunities for Blockchain are rising in the global financial business environment. It would also open opportunities for career aspirants in the FinTech sector. For instance, a Blockchain certification would give added impetus to their career profile.
How to make a career in FinTech?
For a career in FinTech, it's best to work on the aspects below.
- Strong knowledge of financial concepts and principles is fundamental for a FinTech career aspirant.
- Competent skills in FinTech tools and platforms are needed to work efficiently on financial systems.
- A Blockchain certification from reputed institutes in India will help FinTech career aspirants understand Blockchain technology and its role in transforming the financial sector.
- Understanding Fintech basics and how FinTech technology improves financial services is key to making a career in FinTech.
- Staying updated about the constantly evolving FinTech regulatory environment is important for navigating the FinTech market space and selecting the best career in FinTech suited to one's capability.
- Understanding the types of FinTech companies and their business models is essential. For instance, Payment companies focus on digital payments like peer-to-peer (P2P), QR codes and so on to facilitate a payments ecosystem. Lending companies streamline the borrower lending process.
- Evaluate the rewards, benefits and risks associated with having a career in FinTech.
- Efficient communication skills for communication with key stakeholders.
FinTech is a fast-growing industry in India. With the growing interest in implementing innovative technologies like Blockchain, a career in FinTech could be very promising. Check the best FinTech courses in India offered by Imarticus Learning. Check out the webpage, chat support or training centres across Mumbai, Thane, Pune, Chennai, Bengaluru, Delhi, Gurgaon, or Ahmedabad to learn more about the program.