What is FinTech and Why is it Important?
Services such as PayPal and CashApp are taking the world by storm and have become important parts of the financial world. With the rise of cryptocurrencies and non-fungible tokens (NFTs), FinTech has never been more relevant. Read on if you’re interested in learning more about what FinTech is and how it benefits the financial world.
What does FinTech mean?
FinTech, also known as financial technology, refers to financial services that operate digitally. This encompasses a wide variety of services, including online banking, blockchain and cryptocurrency services, investing, and more. It’s a disruptive industry that has drastically changed the way financial services are delivered. Most people require FinTech programs in order to manage their finances, making FinTech an extremely important and in-demand industry.
Careers in FinTech
There are a wide variety of FinTech jobs available for those hoping to enter the field. Given the importance of FinTech professionals, they’re in high demand and employers are willing to compensate them well for their work. Right now, FinTech is considered to be one of the most crucial industries in the global economy, so there’s no better time to get started with your career in the field.
1) Cybersecurity Analyst
Cybersecurity helps keep people and businesses safe from data breaches. Cyber attacks are a constantly growing threat, and given that money is typically the main motivator of cybercriminals, financial services are a common target of cyberattacks. That makes cybersecurity analysts a vital part of any FinTech company, as they work to protect user and company data.
2) Blockchain Developer
Blockchain technology is growing increasingly common in our modern world. Between cryptocurrencies and NFTs, blockchain technology is becoming an integral part of how financial institutions handle cryptocurrency. The demand for blockchain developers has increased significantly in the FinTech industry. As a blockchain developer, you’ll get the chance to advance blockchain systems that drive technology further and work to discover solutions to complex problems.
3) Compliance Expert
Compliance experts are an important part of many companies, as they ensure organizations stay up to date with the latest company, state, and federal regulations. No company wants to run into issues because regulations weren’t followed — as a compliance expert, you would ensure that the FinTech company you work for is carefully following all rules and regulations set into place.
4) Quantitative Analyst
As a quantitative analyst, you’ll be in charge of managing financial models. You’ll use quantitative methods to empower your company to make strategic financial and business decisions. By developing complex algorithms, you’ll have the insight needed to help your company make smarter financial decisions.
5) Data Specialist
Data specialists are experts in analyzing and summarizing important financial data. As a data specialist, you will prepare detailed reports to communicate your findings with the rest of your company and help make strategic decisions based on the results. Data specialists are an invaluable resource for any FinTech company.
Why is FinTech important?
With the majority of commerce occurring online in the modern era, FinTech is an increasingly important industry. Society relies heavily on online financial services to take care of their financial needs — it’s important that these services work well and are safe for users. Check out the top five reasons why FinTech is a critical part of the business world:
1) Keeps users and their information safe
Nobody wants to have to worry about whether or not a cyberattack is going to drain their bank account or steal their passwords. FinTech specialists make sure the online financial services that people rely on work well, and that users are kept safe from hackers who might try to steal or corrupt data. Working in FinTech allows you to give users a peace of mind so they can manage their finances without worry.
2) Cost-effective
When compared to traditional financial institutions, FinTech companies are able to offer financial services at a considerably lower cost. The tech that is utilized by FinTech allows these companies to automate tasks and keep their staff sizes smaller than traditional financial institutions that rely solely on human resources. Additionally, physical branches aren’t necessary, which is a significant benefit when it comes to the cost of running a business.
3) Benefits the public sector
FinTech has proven to be very beneficial when it comes to aiding in the growth of the public sector. The affordability of electronic transactions means that governments are able to cut costs, allowing them to put that money towards growing the country’s infrastructure. FinTech also gives governments the ability to enhance certain critical social services, such as healthcare and education, by making them more accessible to people in need of them.
4) Financially inclusive
FinTech services can be used by just about anyone, anywhere, making them more accessible when compared to more traditional financial institutions. Banking services aren’t readily available to everyone — depending on where someone lives they may not have access to money management services. Individuals who were not able to have access to financial services before, may find success in using FinTech services.
5) Gives power to small businesses
Once upon a time, it was only bigger corporations that had access to the most up-to-date financial and technical tools. FinTech has changed this and made some of the most useful tools available to any business or individual that needs them. This means thanks to FinTech, small businesses have much greater potential to succeed.
Study FinTech at NJIT
NJIT is an excellent place to take the first steps toward a career in FinTech. NJIT is the first and only university in New Jersey to offer a bachelor’s degree in FinTech. Our B.S. in FinTech program will prepare you with all of the skills and knowledge you need to succeed in this emerging field. If the future of finance excites you and you want to be at the forefront of economic change, then apply today!