You're considering a career in Financial Technology. What challenges should you expect?

FinTech skills and knowledge extend far beyond IT so it's important to understand its business impact. For example, AI will define new strategies, operations and business models in the financial services industry. Employers are desperate to hire people who understand what the impact will be across all business functions, not just in the IT dept. A recent survey conducted by Amazon Web Services shows that: over 75% of employers think AI will also have huge impact on R&D, finance, sales and marketing departments; and over 60% think there will be major impact on legal, compliance and HR functions.

Expect challenges in a career in Financial Technology including regulatory compliance, cybersecurity threats, rapid technological advancements, and competition in the market landscape

Financial technology has various categories of skills and knowledge. Industry: Financial may mean financial services such as banks, insurance, resinurance and investments. Products: If you choose one industry, get to know the products. In insurance, rechnology is changing what kind of products are available and now they can suit customer needs better. Inside a company, there are data, processes, systems and reports. Accountants or data analysts should know these.

FinTech demands a diverse skill set encompassing finance, statistics, and economics alongside a willingness to adapt to evolving technological advancements. While expertise in traditional financial principles forms a solid foundation, staying abreast of programming, data analysis, ML, etc is crucial. Professionals must be flexible and open to learning, as technology continually reshapes the industry's landscape. By blending conventional financial knowledge with cutting-edge tech proficiency, individuals can effectively innovate and meet the evolving needs of customers in a rapidly changing digital environment. Success in FinTech hinges on the ability to navigate this interdisciplinary terrain, staying agile, and embracing ongoing education.

In a career in Financial Technology, you can expect challenges such as navigating complex and dynamic regulatory environments, keeping up with rapidly evolving technology, ensuring data security and privacy, managing large volumes of data effectively, and addressing the need for seamless integration with traditional financial systems. Additionally, there may be challenges related to ensuring user trust and adoption, meeting stringent performance and scalability requirements, and managing competition and market disruptors. Persistence, continuous learning, adaptability, and a focus on innovation are key qualities to overcome these challenges successfully.

At the company level, insurance companies compete with other insurance companies and banks that offer insurance. Google and Tesla have tried various ventures. Wherever customers buy things online, an insurance product could be taged on. This chagnes the distribution of insurance products and affects competition.

Inside the accounting systems (as opposed to the policy administration systems) of insurance companies, the revenue numbers are often not attached to customer's personal details. Large amounts of work can be done without risks of sharing private details. Still, there are security and privacy concerns so that you don't share company information outside without authorisation.

As this industry holds immense potential and is still in its developing stage, companies have the option to specialize in a particular category or attempt to offer a wide range of services. For instance, Stripe is predominantly focused on the payments and transaction side(payment gateway and processor services), while firms like Coinbase provide more traditional fintech services. These companies concentrate on limited services compared to banks, which offer end-to-end solutions. This diversity allows companies to carve out their niche and cater to specific market needs.