<strong>Skills and education needed to pursue a career in fintech</strong> | The Financial Express

Skills and education needed to pursue a career in fintech

The evolving fintech sector in the country has induced a significant number of players to gradually shift from conventional processes to digital modes of financing.

Skills and education needed to pursue a career in fintech
The financial courses now focus not only on the borrower’s repayment capability but also on the outcome of the entire process.

By Mahesh Shukla

Technological innovations and fast-track digitalisation has revamped the way people avail financial services. Especially during the restrictions imposed to contain the pandemic, people became more inclined towards online financing, which in a way enhanced financial inclusivity and provided people with more financial independence. Technology-led financial institutions have significantly reshaped the way people perceive and interact with financial institutions these days. The evolving fintech sector in the country has induced a significant number of players to gradually shift from conventional processes to digital modes of financing.

Amongst the many disruptions caused by the recent pandemic, one of the most prominent ones was the growing percentage of educated unemployed people. However, there had been a silver lining too as the restrictions during the global crisis opened doors for the financial technology players to completely re-invent financial services. From product development to document verification and delivery methods to portfolio management, fintech has redefined the role and importance of financial institutions, in one of the world’s fastest-growing markets.

The steadily increasing demands for online financing have prompted the exponential growth of the fintech market, which was valued at $50 billion in 2021 and is expected to reach around $160 billion by 2025. Market surveys reveal that by 2030, India’s fintech sector will reach a worth of USD 1 trillion in terms of Asset under Management (AUM) with a revenue value of USD 200 billion. The growth with such a phenomenal pace will be quite helpful to make India a $5 trillion economy.

The flourishing fintech industry has opened prospects for lucrative career options in the sector with the inclusion of cutting-edge technologies like peer-to-peer lending, robo-advisors, cryptocurrencies, investment management software, big data and online banking in financial processes. A career in the fintech industry encircles ways to leverage smart algorithms and secure cloud-based devices to enhance financial services. A few common spectrums of fintech include digital transactions, mobile stock trading, e-commerce, digital loans, bank currency exchanges, retail banking and investment management.

There has been an escalation in the rise of income-share agreements (ISA) in financial institutions, which has driven the need for students to focus on skills they will learn during the course and how the learnings will be relevant for them in climbing the success ladder in their professional careers. In the era of ubiquitous technology, financing is not just about two stakeholders – the borrower and the lender; it involves multiple stakeholders including the educational institutions, who provide a vivid understanding of financial tools and processes like repayment capabilities and customisation. The financial courses now focus not only on the borrower’s repayment capability but also on the outcome of the entire process.

With the advanced financing incorporating several online transactions like purchases, bookings, subscriptions, payments, transfers, trades, etc., the overall process involves a massive amount of data that needs to be analysed and converted into meaningful information; bringing in the rising relevance of data scientists. Some of the top career paths in the fintech industry include fields like data science, cybersecurity, blockchain development, artificial intelligence and machine learning.

(The author is founder and CEO, Payme. Views expressed are personal.)

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First published on: 04-11-2022 at 15:49 IST