Fintech is Reshaping the Financial Sector: Here's What Millennials Need to Know

Written by Kevin Liew on 10 Jun 2019
50,119 Views • Miscellaneous

In 2018, financial technology (fintech) firms raised nearly $40 billion in venture capital, according to the National Crowdfunding and Fintech Association. More than 1,700 fintech companies raised funds in 2018’s record-breaking venture capital rounds. Around the world, fintech spending is on the rise.

Now, fintech deals are expanding outside of key markets and emerging around the globe. Outside of major markets, such as China, the U.S and the U.K, nearly 2,750 investors have funded close to 1,500 new fintech startups.

For millennials considering a career in finance, it’s a smart move to find out what’s going on with fintech. If you want to work in finance, you can prepare for success by understanding the latest trends in this rapidly evolving field.

The Finance Sector Is in for a High-Tech Upgrade

The growth of cryptocurrency is transforming the field of finance. Moreover, it’s compelling the finance industry to embrace technology at an unprecedented pace. In banking, investing, insurance and financial advising, fintech is revolutionizing the way that things are done.

Moreover, small startups are starting to make waves for long-established financial institutions. As this occurs, consumers are enjoying remarkable innovations in financial services and education. Virtual and mobile banking technologies are changing the way that consumers and businesses manage money.

Furthermore, 88% of surveyed finance executives expect to collaborate with fintech partners within 3 to 5 years. Also, 90% of finance professionals expect to work with blockchain by the year 2020. Meanwhile, fields such as insurance, financial planning and borrowing are undergoing rapid transformation.

Governments Around the World Are Gearing up for the Change

As the fintech field take shape, the world’s governments are enacting laws to protect the public’s interests. In China, the central bank is slowly rolling out new regulations to govern financial technology. Japanese regulators are creating laws to control virtual investing.

The Mexican government has established new mandates to regulate local cryptocurrency exchanges, and the Swiss federal government is in talks regarding new laws about blockchain technology and finance. The talks come at a critical time as the Swiss central bank explores issuing official digital currency.

Meanwhile, Hong Kong officials have issued the first licenses for virtual banks in the region, requiring them to comply with the same laws as brick-and-mortar institutions.

Elsewhere, the Eastern Caribbean Central Bank and the Central Bank of the Bahamas are testing blockchain. As institutions around the world embrace technology, the need for skilled fintech talent rises.

Data Scientists Will Lead the Charge

Around the world, real-time payments, 24-7 operation and international trade are becoming standards. Global stakeholders see blockchain as a real solution for secure digital finance. Governments and enterprises around the world are experimenting with the technology. Along with the benefit of immediate and secure transactions, blockchain offers a wealth of valuable data for finance professionals.

The policies and procedures that are emerging due to these growing demands are shaping the financial technology landscape. Still, nothing is impacting the future of fintech more than cybersecurity.

Institutions recognize that there is a need for talent that can collect and analyze fintech data. Already, studies show that 90% of companies take advantage of data analytics. Also, there’s a growing demand for information technology officers who can maintain data governance, rights, security and privacy across international borders.

You Can Get Ahead of the Learning Curve With a Degree

The fintech market is exploding. With the right training, you can ride the fintech wave to the top.

As this lucrative field emerges, a Master of Business Administration (MBA) degree can position you to lead. An MBA course will prepare you for executive leadership with specialized training in critical thinking, communication and analysis.

Salaries in fintech are extraordinarily generous for those who have earned an advanced degree. MBA candidates who work in fintech are sure to realize a valuable return on their investment in education.  Fintech MBA students learn several competencies, including:

  • Dividend policies

  • Financial decision-making

  • Investment performance

  • Portfolio management

  • Risk management

Successful MBA finance candidates go forth in their careers to make mission-critical decisions for institutions. It’s their job to maximize value for both the enterprise and investment stakeholders.

MBA finance executives also spearhead organizational planning. They oversee organization’s short and long-term investments.

A graduate degree in finance can open doors to a world of global opportunities. An advanced finance degree will prepare you to take charge of the emerging fintech landscape.

Earning an MBA degree is the first step towards proving that you have the technical skills and knowledge to succeed in a highly complex and important discipline. Best of all, you’ll make professional connections that could propel your career to the top of the C-suite.

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