You're considering a career in fintech. How does it differ from traditional financial services?

Fintech uses innovative technology such as automation, artificial intelligence, blockchain, cloud computing, big data and analytics to improve the way financial services are delivered. Also the technology is used to create better customer experience, viz the digital platforms are created keeping focus on user personas, the interface are generally user friendly and intuitive. Further Fintech uses data to personalize financial services and predictive analytics to understand customer in a better way.

In an era dominated by traditional banking institutions, a new wave of Gen-Z-driven technological innovation sought to revolutionize the financial landscape. This desire for change led to the birth of FinTech, a fusion of finance and technology that aimed to enhance the user experience within the financial ecosystem. While technologists brought groundbreaking ideas and a flair for innovation, they lacked a sustainable monetization strategy. Conversely, financial behemoths knew how to generate profits but fell short in terms of innovation. The convergence of these two worlds resulted in a symbiotic partnership, giving rise to FinTech as a transformative business model that redefined the industry.

Fintech is inherently more customer-oriented and adaptable, as it relies on data collected directly from customers. This approach proves to be significantly more effective for both customers and businesses, as it enables the creation of tailored offers based on individual customer needs. Moreover, fintech solutions eliminate the necessity for physical presence, allowing for all interactions and problem resolutions to take place in the online space. This flexibility and accessibility not only streamline processes but also save time for all parties involved.

FinTech most certainly needs to be customer-centric but a common mistake is to assume that the customer journey should be wholly digital. This can leave customers dissatisfied, eg being subjected to chatbots that can't answer their queries. The most successful FinTech solutions that interface with customers engage them using a hybrid model of digital and human involvement which ensures the customer's needs and preferences are met throughout the customer journey.

Many fintech solutions cover a very specific part of the customer's experience such as transferring funds, applying for an account, or financial planning. Understand what part of the customer's journey that the fintech that you're involved with covers and understand the inputs and outputs of that solution. Next understand all of the solutions that interface with your technology, as well as how customers interact and are impacted by it.

Actually only part of FinTech is technical. Of course if you want to be involved in the coding or other technical aspects of FinTech development you will need to gain technical skills. However, the impact of FinTech is far beyond the IT department. FinTech is redefining numerous functions such as R&D, sales and marketing and UX and design. So there are lots of 'FinTech' careers in these areas. Financial institutions are actively recruiting and training to develop professionals to fulfil these roles.

This can be further elaborated with a fintech instrument such as digital wallet management, which serves as a practical tool for reaching underserved populations. Digital wallets offer convenient, low-cost financial services accessible via smartphones, which are widespread even in less developed regions. This technology enables the unbanked and underbanked often excluded from traditional banking to participate in the financial ecosystem. By facilitating trxs, savings, and even credit, digital wallets embody fintech’s inclusive ethos. Professionals in this sector must therefore focus not only on technological proficiency but also on creating solutions that are accessible and beneficial to all, reflecting the diverse needs all communities.

From my point of view, new tech is the main difference. There are rather a lot of similarities. A keen interest in emerging technology, some foundational understanding / experience in traditional financial services and an entrepreneurial spirit would set you up for success in fintech. In my own experience, being a Chartered Accountant helps me a great deal to understand the unit economics of a sound and viable business model or idea, even before the tech.

FinTech's are a new age business who are using the regulatory loopholes / enablers to provide fast paced services. Traditional financial services have established processes and responsibilities and ways of working; however, FinTechs will have evolving processes, manual interventions and vague responsibilities.