Why Do You Want To Work In Fintech?
Many of our candidates at Pathfinder are telling us they want to work in fin-tech, but how many of us actually know what that means?
Financial technology is a newly defined industry space made up of companies that use technology to make financial services more efficient. Initially, fin-tech referred to startups that were trying to displace existing financial systems and disrupt traditional payment processes and providers.
What Is Fin-Tech?
In recent years, fin-tech has become one of the hottest buzzwords in the same way that dot.com was in the 90’s…Today, you could argue that fin-tech is increasingly being used as a broad, catch-all phrase, to apply to any kind of of financial services company that has some sort of technology offering.
Whether its robo-advisers, block chain participants, mobile payments companies or online loan providers, every financial services companies needs to be in the business of fin-tech in order to stay relevant and survive.
A recent report from Accenture shows how much money is being invested into fin-tech; From US$930 million back in 2008 to over $12 billion by the beginning of 2015 with Europe experiencing the highest growth rate. Increasing financial regulation coupled with more sophisticated customer requirements would imply that this investment will continue.
Should You Work In Fin-Tech?
Whilst almost all banks and financial institutions are making sure they are suitable fin-tech savvy, there are ultimately three ways to be an innovator in any space; by innovating in technology, through product innovation and through business-model innovation. When considering a new employer, you need to understand how they are truly innovative.
Quite a lot of the so-called start ups are using relatively old technology but delivering service to the customer in a more innovative way so they could be great places to work, particularly if they have good backing.
Ultimately the most successful companies will be those who can monetize their client relationships through technology and when interviewing with any company you should ascertain how many paying clients they already have on their books.
The rise of fin-tech has opened up a world of possibilities. Businesses can offer more services than ever and for a fraction of the price of what it would have cost before. Consequently there are many new companies or spin-offs being set up but do you have what it takes to work for a small company with a very different culture to a traditional bank?
If you are serious about making a career change into this industry space you need to keep up to date with fin-tech developments and follow the companies you are interested in. Being aware of the latest opportunities and developments within the field will only improve your marketability when the right job comes along.