Why fintech business will be lucrative in 2023
The impact of fintech on the traditional banking and finance industry has been monumental. It has consistently disrupted the status quo even in the face of economic downturns and regulatory shifts. Fintech’s reach extends beyond just payments, as startups in this sector aim to revolutionize areas such as direct lending and investment banking. In fact, India is currently the third largest fintech market, with over 7,300 startups in the segment, backed by a total funding volume of around $30.2 billion, which is expected to reach $200 billion in revenue by 2030.
The key to success in the fast-paced fintech world is the ability to stay ahead of the competition through practical skills and knowledge rather than relying solely on academic credentials, as is often the case in traditional banking. As fintech continues to evolve, those who are able to adapt and lead the charge will come out on top.
Why work in fintech?
As the financial services industry continues to evolve, the fintech sector has emerged as a highly lucrative career option. This is largely because the banking sector is an important source of income, and even in a recessionary environment the banks still perform well. Thanks to rising interest rates. But even traditional banking systems face several technological challenges when working to implement real-time payment systems. These include the need to move to the cloud and comply with ISO 20022 requirements, among other trends. To meet these challenges, banks are investing heavily in technology and hiring more IT personnel. One way they do this is by partnering with fintech firms.
Get the right experience
Technology has played a critical role in the growth of the digital economy, and financial service providers in India have increasingly adopted it to improve their reach, customer service and operational efficiency. Fintech has made banking and finance more intuitive, personal and empowering. The convergence of financial services and exponential technologies is critical to building a strong digital economy and driving India’s transformation. There are many opportunities for those who want to start their career in the fintech industry, whether it is with established multinational companies or start-ups. Startups may have the head start in terms of technical expertise and the ability to develop breakthrough technologies, while larger organizations may have access to resources such as innovation labs that can provide support in building a strong foundation and staying agile in this rapidly changing field. Both paths can lead to success in fintech.
Learn the right tools
In 2023, cyber security and automation are still key trends in fintech. Cyber security is a top priority as the use of financial technology increases the risk of cyber attacks, while Robotic Process Automation (RPA) is also popular as it automates tasks such as verification and improves efficiency. Biometric identities, such as fingerprints or facial recognition, improve customer security and ease of use. Blockchain technology, which enables secure record-keeping, is used by fintech firms for various purposes such as tracking transactions and preventing fraud.
These advances are significantly impacting the fintech industry and will continue to shape it in the future. They also create new opportunities in areas such as cyber security and data analysis. For example, there are opportunities in commercializing blockchain, and programmers with blockchain expertise are in demand to solve the problems of integration into business models.
Low-code technologies have gained attention in the fintech industry to effectively develop financial applications, especially those related to payments.
Be part of the change
The ever-changing nature of fintech is that big data and automation are being replaced by AI and ML. Blockchain technology has the potential to provide more transparency to existing financial systems, as well as make transactions more secure and efficient. Data shows that blockchain deployments will enable banks to realize savings on cross-border settlement of transactions of up to $27 billion by the end of 2030, through cost reduction of more than 11%.
Older solutions used by banks are not suitable to comply with the increasingly strict regulations being implemented worldwide. Analysts today spend 90% of their time on data collection and organization and only 10% on data analysis. This has prompted Regulatory Technology (RegTech) to become an integral part of the Fintech ecosystem to solve this problem and come up with solutions that can tackle the latest and most complex regulations, lawsuits and regulatory improvement areas that Financial Institutions (FIs) are facing. reduce the cost of compliance. With 10 – 15% of the workforce dedicated to regulatory compliance, RegTech is set to become a major factor in facilitating compliance management and minimizing regulatory risks in the future.
Create the perfect customer experience
Technology has greatly improved the customer experience in the payments industry. Customers can now easily make payments through online banking, mobile payments and other types of transactions that are securely and efficiently connected. The emergence of the “All Customer Access to All Financial Services” model also gives customers access to a wide range of financial products and services, regardless of their location or financial status.
For example, data analytics capabilities can help collect and evaluate customer information, which can help them better understand customer preferences and deliver a more personalized customer experience. The possibilities for growth and development are endless, and the potential for high rewards is great. Fintech offers a chance to build a challenging and rewarding career. Fintech companies are often at the forefront of new technologies, and working in this sector can provide access to the latest innovations, keeping you ahead of the curve.
