The increasing pace of financial services is now responded by the industry’s necessity to upgrade. This has driven the experts to deduce that the finance, in today’s scenario, acts more as a facilitator than the purveyor of financial products and services. In such scenario, the amalgamation of Finance and Technology (FinTech) is the hottest sector to be in, thanks to enabling technologies like Blockchain, API, Big data analytics, AI/ML and Internet of Things. Of these, Blockchain holds the biggest promise.
These fast-approaching disruptive innovations are set to remodel the entire financial landscape. It will eliminate unnecessary delays by replacing large piles of paper-based records and simplifying procedures. In the wake of evolving crossroads between financial services and technology, the need for specialised professionals in this field has also increased. As a result, students aspiring to build their career in the genre have begun to acknowledge and position themselves with the real-time demand.
With the objective to adapt this evolution, MBA aspirants are ready to seize the opportunities presented by the world of FinTech. As the future of finance and the ongoing industry-wide disruption, the blockchain technology seems to be appealing to MBA candidates more than the traditional careers.
GAINING INTEGRATED EXPERTISE
With the emergence of cryptocurrencies like Bitcoin & Ethereum, blockchain technology suddenly became a buzzword in the digital world. However, soon people realized that, like an iceberg, crypto currencies represent only fraction of the opportunities offered by Blockchain technologies. Being closely associated with finance, many organisations are now devoted to creating blockchain apps across various industry segments. At present, it is the hottest job skill in the market that yielded more than 6,000 percent in the previous year.
Being a digital decentralized ledger of financial transactions, it holds data on a continuously reconciled and shared (distributed) database. In addition, the feature of storing data in more than one location makes it less exposed to hacking or corruption. Therefore, any records maintained through Blockchain are easily verifiable and accessible by anyone on the internet. This allows easy handling of the apps and offers transparency, making it mandatory for the future professionals to add this skillset for contributing to the growth of an organisation.
FinTech or Financial Technology has disrupted traditional financial services. It has added new dynamic layer to the traditional boring Finance which has attracted many young minds. FinTech has improved customer experience, made finance activities more efficient and facilitated greater financial inclusion. Segments such as payments, cross border remittances, lending, investment, insurance and consumer banking are already observing the disruption with more and more consumers turning to FinTech services.
Most prospective professionals, therefore, are now resorting to gain skills pertaining to Fintech in order to remain competitive. The aim is to increase the customer retention, understand and react to the competition better, enhance new financial products and services, and leverage current analytics and data in an effective manner.
IMPACT ON THE INDUSTRY
Industry requires professionals who can understand the business problem, evaluate various innovative solutions available from the market and implement right solution for the given problem. A number of financial institutions are already experimenting with the creation of Blockchain-based applications to automate and simplify their processes. Wide spread commercial deployment, however, is anticipated to take place around the year 2020.
The Blockchain apps are projected to pose as a direct competition for market share with investment, central, and commercial banks along with other financial services institutions. Besides embracing these evolutions at a steady pace, the traditional financial entities are now being defied by new players in the industry. For instance, FinTech start-ups are using emerging technology to earn more market share. Be it mobile payments, money transfers, financing of projects via crowdfunding platforms, or even portfolio investment robo-advisor, several firms are comprehensively investing in the latest technologies. While some are installing in-house labs, some are buying startups, and others by getting into partnerships with FinTech companies.
Even entrepreneurs are viewing these technologies as a big opportunity for their business. With digitalisation coming into effect, online retailers and investment managers are introducing products in the market, which are pertinent to digital currencies. It has become even more important for IT managers, IT consultants, accountants, financial advisors, controllers, and legal and government professionals to understand the technologies and digital developments so as to serve as a reliable advisor to management and clients.
Thus, in the long run, to maintain effectiveness, technological upgradation must be roped in for the widespread impact on the sector. Consequently, the rising demand for additional skill sets in Blockchain is set to alleviate the career of not only aspirants but also of organisations as well.
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About the author: Pragati Shrivastava
Pragati Shrivastava is a content writer at SP Jain School of Global Management. She is a skilled blog writer with over seven years of work experience. Currently placed in the Marketing team at one of the Top B-Schools, she is committed to delivering day-to-day programs related information through her work. She has worked across verticals ranging from sports to real estate in the past. She is a huge Netflix buff and loves reading fiction in her free time.
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