Financial Technology or Fintech is using electronic or information technology to perform financial activities. Any transaction, remitting or receiving the money to or from any bank account respectively can be done at the click of a button using a device like a laptop, tablet or even a smartphone with the help of this technology. It has proved to be very helpful for people who cannot avail of the traditional or physical methods of banking. In India, it mainly picked up in the year when demonetisation was announced in the year 2016.
Today Financial Technology is a multi-billion dollar industry, and hence, a Fintech career is one of the best career decisions for a prospective candidate. Various basic financial activities like investment, opening different modes of bank accounts, making payments, transferring money, loan processing, paying a merchant, booking insurance, etc. can be done with the help of Financial Technology. It is an excellent achievement for our country that today Fintech is applied daily by very small shop owners, street food vendors and local grocery dealers. Many reliable money wallets are catering to the needs of crores of Indians as of date. So, Financial Technology is worth the hype and will gain more importance in the coming future.
Importance of Financial Technology
Financial Technology has proved to be a boon for the Fintech firms as well as the customers in many ways. Some of the examples are as follows:
- Financial Technology is cost-effective and cheaper as compared to traditional methods of banking. Often banks charge transaction costs while making a payment or transferring money to a different account. But with the use of Financial Technology, one can make payments or transfer funds without incurring these extra costs. It is because of the increasing use of Fintech that banks can employ lesser employees to work in a particular branch, which helps them to cut expenses.
- Financial Technology is time-saving as well. For customers, who cannot afford the time or for aged people, who find it difficult to visit banks, financial technology comes to the rescue. Fintech brings all financial activities to the fingertips of its users. It is also useful for big firms and organisations because managing accounts and costs have become easier.
- A 24-hour customer support service is one of the main perks of the increasing use of Financial Technology. If any issue arises, customers may dial the call centre’s number and get it sorted out right away, sometimes just by interactive voice response system, i.e. solely without human involvement. This has increased customer trust in Fintech firms.
Challenges in Financial Technology
Though there are a lot of digital methods to keep the Financial Industry safe and secure from online fraudulent actions, the risk may not be ruled out in totality. But, it may be noted that there are a lot of cyber security guidelines in place, and if followed religiously, would provide invisible armour to the user. In fact, all financial transactions created by customers are encrypted end-to-end. This feature is enabled not only by banks or NBFCs but even by all third-party wallet owners. One does not even require to provide his/her bank account number but just the mobile number in the case of transactions from one individual to another, provided they do it on the same wallet platform. The latest security updates keep the transactions safe. In many case studies, it has been observed that cyber theft or attacks have occurred to those customers who have been lured or convinced to share sensitive information like passwords, date of birth, OTPs, etc. So being aware of the probable fraudulent actions and knowing the guidelines is the key to safety from cybercrime.
Skills Required in Financial Technology
Having a finance background is a basic requirement. However, it may be noted that several IT engineering graduates after completing their MBA in Finance are also taking interest in Fintech. The aptitude for creativity and information or software technology is a basic requirement for Fintech careers.
Career in Financial Technology
A candidate who wishes to pursue Financial Technology as a career has to complete his/her Undergraduate and then can apply for Financial Technology courses. Various institutes offer these courses in online or offline mode as preferred by the student. Fintech jobs are one of the most high-paying jobs. Various job opportunities after studying Fintech are as follows -
- Quantitative Analyst and Data Scientist
- App Developer
- Career in Regtech
- Career in Edutech
- A career in Fintech firms/start-ups that deal with bitcoins and cross-border money transactions
- A career in Banks and NBFCs
- Artificial Intelligence and Machine Learning
- Risk Control Managers
- Compliance Officers
- Block-chain Developers
- Financial Analysts
Fintech has its fair share of challenges but at the same time, it is one of the most precious gifts of science that one can ever come across. A career in Financial Technology has one of the best job prospects in the financial world. The Financial Technology Programme at Imarticus offers one of the best Fintech courses in India. It is an online training programme that will fully prepare you for the financial world out there and will help you to reach your desired goal.