Thursday, June 8, 2023

FinTech: The Next Big Thing

 

FinTech Basics

Technology is becoming incorporated into almost every aspect of our lives. An article written by Columbia Engineering defines Financial Technology as the term representing software, mobile applications, as well as other technological advancements intended to automate and improve configurations of finance. Although it will be difficult for some to adapt to this style of living, learning how to acquire the proper knowledge and skills in order to utilize financial technology will be essential. A popular example of financial technology includes an app you may frequently use today. Venmo. Robinhood is another common application and trading platform that you may have heard of. It may seem as if financial technology is a new and recent finding, but the concept has actually dated back to the 1950s. This is when credit cards were first invented to the public for usage, and where fintech was introduced to the world.


How does FinTech work?

The goal of fintech is to ultimately streamline the process of financial transactions and eliminate unnecessary steps in order to optimize costs and accessibility. Some companies use fintech in the form of AI (artificial intelligence) in order to highly secure transactions in their internal network. In fact, today's fintech is primarily driven by AI, big data, and blockchain technology . These have all redefined how businesses store, transfer, and protect their digital assets. AI works by collecting data on consumers behaviors, therefore providing valuable information on their spending habits and allowing companies to better understand their customers . Big data analytics allows companies to predict changes in the market and create new business strategies powered by data (Columbia). Lastly, a newly introduced technology called blockchain, allows transactions to be dispersed without a third party’s opinions.


Learning FinTech

There are many fintech boot camps available for people who are looking to gain knowledge and experience in the area. Bootcamps offered by Columbia Engineering are particularly structured in order to provide hand-on experience for students possibly interested in a career in fintech. Most colleges also offer degrees with a concentration or focus in fintech as it is a growing industry. Free online courses are also available through multimedia apps and digital guides. This form of self-teaching may be ideal for those desiring an autonomous learning experience. Just keep in mind that time management and organization is essential in order to optimize self-teaching courses.

Programming, Cybersecurity, AI/ML, Data Science, and Blockchain are all important skills to acquire when accustoming oneself to fintech. There are an abundance of jobs and career opportunities in the world of fintech, and the median pay for a financial analyst was $83,660 in 2020 (Columbia). In fact, the field is expected to grow by 5% by 2029 according to the Bureau of Labor Statistics (BLS). You can also access financial fitness tools on our website in order to jump start your journey to success.


Getting Acclimated

It’s understandable that some people may not have their full trust in financial technology. Forbes states that 68% of people are willing to use financial tools developed by non-traditional institutions (Forbes). It is important to be careful when using financial technology, just like any other process involving money or personal information. If you are hesitant to use fintech due to safety concerns, remind yourself that the benefits generally outweigh the perceived risks.



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