Finance Professionals, it’s time to upskill

Nowadays, we exist within a high-speed, data-rich world and whether it is within the Human Resources, Marketing, and now Finance Services Industries – the 4th Industrial Revolution is reshaping the business world. Financial Institutions and Finance Managers across all industries are embracing technology and there is a good reason why.

FinTech (Financial Technologies) are becoming increasingly popular across businesses, automating the delivery and use of financial services to streamline their financial operations. From raising money through crowdfunding for a startup, to managing one’s financial portfolio with their smartphones – FinTech is growing at an exponential rate. As a specialist within the Finance talent space I am seeing increasing demand on a daily basis for finance professionals who have experience or are upskilling themselves towards the 4th industrial revolution. So instead of being terrified by this change rather embrace it and upskill yourself to ensure you are that in-demand finance specialist.

In addition to businesses, FinTech has also found its services reaching different sectors, separating them into individual offerings, allowing financial institutes and companies to cut down on transaction costs. A result being that organisations can now align their business strategies with customer expectations.

As a finance professional it is crucial to familiarise oneself with FinTech. Enrolling in various training programs or taking a FinTech course to understand how the financial industry is experimenting with automation and new delivery platform is now an ongoing practice that I highly recommend instituting. Equipping oneself with the knowledge to tackle transformative initiatives and cope with the evolving workplace environment will secure the demand for the necessary skills in an environment where jobs will become increasingly scarce.

The Five most important FinTech innovations that are changing the world we live in today:‍

‍Blockchain Technology

Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. It transforms traditional financial processes into democratic and transparent procedures.

‍Artificial Intelligence (AI) & Predictive Analysis

Familiar with big data? The digital world is producing tons of data every minute, allowing organisations to improve their business models. FinTech’s role is to leverage AI and predictive analysis tools to detect frauds and analyse financial trends. AI benefits the performance of financial institutions, creates insights and forecasts algorithms. Furthermore, AI incorporates predictive analysis to record demand movements and anticipate stock price changes. As a result, investors can make decisions based on statistical data and facts, helping them earn higher returns.

In addition to this, a few other ways the landscape has been changed include:

Fraud Prevention: AI examines fraudulent payment behaviors and evaluates if an individual displays a similar pattern. It helps in predicting possible frauds, reducing the risk of losses.

Customer Service: It analyses customer data and builds a smart client profile. If your customer is a low-risk investor, AI will automatically unfold low-risk financial securities – bonds, T-bills, etc. In short, it offers a more personalised experience to clients.

Risk Management: Usually, people want to invest all their money in one place if they are receiving higher returns. AI helps with risk diversification and detects potential threat patterns.

Fund Development Prediction: Surprisingly enough, AI can scan investment records and uncover future developments. It looks at past trends and financial databases to make judgments about stock prices and interest rates.

Robotic Process Automation – RPA

RPA uses robotics to complete tasks like sending emails and selecting items to complete complex procedures, such as: creating reports and organising databases, thus removing the burden on the individuals working in each division, freeing up time and enabling the performance of cognitively intensive tasks more productively.

Regulatory Technology

One of the recent developments in the FinTech offering is regulatory technology. It manages all regulations, monitors compliance, and timely reporting. It ensures that the pattern and structure of your financial statements align with international accounting standards. Similarly, it also confirms compliance with government and state regulations.

Digital Banking

FinTech has completely transformed the banking sector. It is facilitating new banking back-end processes by offering targeted solutions to retail customers and businesses. The increasing use of smartphones across the globe has encouraged banks to create and launch mobile applications. A recent study has confirmed that at least 2 billion people currently have access to mobile banking. This has had cross-over effects with large Tech Companies adopting their own FinTech integration – Samsung Pay, Apple Pay and so on.

To wrap up, FinTech is changing the landscape by utilising digital technology to revolutionise financial services. Businesses are making big investments in FinTech software to ensure efficient management of finances as this is no longer a nice-to-have but is being demanded by consumers. Therefore, it is time to grow your skill set, knowledge, and expertise to keep up with the growing FinTech industry.

If you’re a finance professional looking to discuss this further or a company looking for this kind of finance talent get hold of me jevon@clarkhouse.co.za and let’s make things happen!