6 Career Paths in Fintech
Fintech is one of the fast-growing sectors in the financial services industry. Its disruptive nature has found a way to use technology to deliver financial services in non-traditional ways. Technology has fueled online payments, digital wallets, and online financial services. Consumers can shop for insurance, apply for loans, and open accounts. Aggregate apps allow customers to view all their financial activity in one location. All this activity means growing opportunities for a career in fintech.
If you’re already working in the financial or tech sector, look into getting a fintech certificate to increase your knowledge and authority in one of the following fields:
Data Science
Every year Americans conduct over 200 billion non-cash transactions. Contained within these transactions is a wealth of information on what consumers purchase, where they buy, and when. These transactions also tell fintech companies what their potential customers are looking for when they make online payments. To make all those data points have meaning, fintechs need data scientists, data analysts, and visualization specialists. If data’s your thing, brush up on the fintech industry through a few online courses before sending those resumes.
Artificial Intelligence
Chatbots are just one example of how fintechs use artificial intelligence (AI) to improve the customer experience. Robotic process automation and natural language processing are two additional areas that fintechs use to expedite routine financial services for faster response and individualized service. Companies use AI to identify patterns that are difficult for people to see. These patterns can then be used to develop new products or improve service offerings. If you want to be on the leading edge of technology and financial services, a career in fintech may be exactly what you’re looking for.
Wealth Management
Some call it Wealthtech — that part of the fintech industry that focuses on wealth management. More people are looking for financial advice. Whether it is what stocks to purchase or retirement planning, consumers are looking for cost-effective ways to improve their financial position. Giving individuals access to financial information enables fintechs to establish ongoing relationships with consumers.
Fintechs may start with technology-enabled services such as robo-advisors or text-based chat, but there’s always a person available to address more specific needs. If you’re a stockbroker or a financial planner, the industry needs your skills not only for customer service and support but also to assist in developing better products such as analytical tools for investment planning.
Regulatory Compliance
After the Great Recession of 2008, the financial services industry, especially financial institutions and mortgage lenders, underwent significant regulatory changes. Many of these regulations have carried over to fintechs. For example, fintechs must comply with transaction processing rules set by credit card processors, the laws set out in the Electronic Funds Transfer Act, and third-party processors.
There are personal data protection laws that must be followed, and periodic tests may be run to ensure compliance. Fintechs also have to consider international laws as they pertain to financial management. Although fintechs try to automate as much of the regulatory process as possible, they still need help interpreting regulatory changes so they can be added to automated processes. Not only do fintechs need technology experts, but they also need employees with experience in regulatory and compliance requirements.
Cybersecurity
No one doubts the need for cybersecurity. For fintechs, cybersecurity is at the core of their business. They can’t afford security breaches like Capital One and Equifax suffered. Consumers are placing their trust in an online financial service. If that trust is broken because of a breach, it may be impossible to regain that trust.
The increase in cyberattacks continues to increase the demand for cybersecurity experts. It’s estimated that x cybersecurity jobs go unfilled, which makes for an attractive job market for those with cybersecurity expertise.
Payment Processing
Fintechs have made significant strides in payment processing. Think Paypal. Because the fintech market is becoming more competitive, Paypal has started to offer additional services to retain and acquire new customers. For individuals with experience in transaction research, settlement, and reconciliation, there are job opportunities. For technical staff, career opportunities exist in development of applications and APIs, for example.
Getting Started
Fintech is a highly diverse industry. It includes payment processors such as Paypal and mobile banks such as Chime. The industry encompasses insurance companies, investment firms, banking services, and wealth management consulting. Given its diversity, fintech has a growing need for qualified personnel. Suppose you have experience in any of the fields outlined above. In that case, your first step is to get fintech certification so that the companies you are interested in know that you are familiar with the unique environment in which they operate.