Are you interested in a career in finance? The finance industry has long been a magnet for top talent, offering lucrative salaries and unparalleled growth prospects to hardworking and adaptable individuals.
However, like any sector, finance is being reshaped by the rapid advancement of technology, calling for new skills and competencies.
In the past, networking prowess, sales acumen, and even golfing abilities were prerequisites for success in finance. Looking ahead, the game-changers will possess diverse skill sets. Technology, the driving force behind the future of finance, will demand a new breed of leaders. While business acumen and effective communication will remain essential, tomorrow’s finance professionals will excel as technology wizards, shedding the traditional image of the conventional suit-clad financier.
Already, you may have witnessed glimpses of change. Touchless payments, for instance, are a small yet impactful example of how technology has improved the finance industry. It may appear as a mere gimmick, but the simple act of waving your debit card instead of swiping the magnetic strip has significantly reduced the risk of fraud and theft for issuing banks.
However, this is just the tip of the iceberg. Join us as we delve into the transformative developments heading towards the finance industry and explore the in-demand skills of the 21st century. Get ready to navigate the evolving landscape and equip yourself for success in the future of finance.
Neo Banks are online banking services that don’t have any physical branches. Customers access their accounts and perform transactions via a smartphone app. Such services are particularly beneficial in developing countries, where traditional banks have not been able to provide the same level of service that exists in developed countries. An example of this is Nubank in Brazil, which was founded by a Stanford engineering graduate who was recruited by a venture capital firm to scout out potential investments. He came up with the idea when he found that existing banks in Brazil were limited by the existing banking system. For graduates in the finance field who are tech-savvy and entrepreneurial, Neo Banks offer a unique opportunity.
Cryptocurrency is revolutionizing the finance industry, gaining recognition from major banks like J.P. Morgan and Goldman Sachs. It has even secured its place on CNBC. Similar to neo banks, cryptocurrencies offer opportunities that were once exclusive to the wealthy, now available to everyone. With reduced friction, increased efficiency, and enhanced security, crypto has the potential to democratize finance. While its promise remains partially fulfilled, the industry requires a new wave of talent to drive the future of finance.
BLOCKCHAIN AND SMART CONTRACTS
Blockchain serves as the foundational technology behind cryptocurrencies, but its applications in finance extend far beyond. While Non-Fungible Tokens (NFTs) have gained prominence, particularly in the realm of digital art, the potential of blockchain extends further. Soon, this innovative framework will revolutionize finance through the introduction of smart contracts.
These contracts possess the ability to automatically execute predetermined conditions, eliminating the need for cumbersome and time-consuming meetings that your parents may have endured with their real estate agent and banker when finalizing a home purchase. Instead, a seamless smart contract will streamline the process, saving time, enhancing efficiency, and reducing costs for all parties involved.
Self driving cars are what usually comes to mind first when thinking about artificial intelligence, but their biggest contribution may actually end up being in the finance world.
Both the financial advisors and stock traders of tomorrow will be using Al. more than the traditional tools of their trade. Goldman Sachs already has a division of A.1. powered stock traders and many firms are switching to robo advisors to service their clients. Again, there is enormous potential to build an extremely lucrative career at the intersection of Al and finance.
INTEGRATED PAYMENTS AND IMBEDDED FINTECH