The FinTech sector is thriving globally and locally. It has also brought about disruptive innovations to several industries, increasing the demand for FinTech talents worldwide.
From Then to Now: The Rise of FinTech Businesses
FinTech, or financial technology, is the innovative use of technology and/or business models to improve or transform the delivery of financial services and products, such as robo-advisers, digital payments and crowdfunding platforms, to consumers and businesses. From the first automated teller machine (ATM) introduced in the 1960s, to the NASDAQ stock market that launched electronic trading in the 1970s and PayPal which developed digital-only banks in the 2000s, FinTech has come a long way.
The launch of smartphones, the invention of technologies such as Artificial Intelligence (AI) and cloud computing have fuelled the spectacular rise of FinTech. A recent report by Deloitte has shown that investments in FinTech increased to USD131.4 billion in 2021, a huge jump of 144% from USD53.9 billion in 2020.
Singapore is one of the global fintech hubs, and is home to over 40% of all FinTech companies in Southeast Asia, at about 900 entities. Its government has also been a consistent supporter of the FinTech sector. In 2014, Prime Minister Lee Hsien Loong launched the Smart Nation Initiative to keep Singaporeans at the forefront of the digital transformation worldwide, and FinTech is a core pillar of that initiative.
How is FinTech Shaping Our Future?
FinTech has changed the way consumers spend, save and invest their money. This technology has brought about much convenience to consumers at much lower costs than traditional financial services. Hence, the consumers have become more comfortable with managing their personal finances and businesses online and less tolerant with the process inefficiencies and high costs incurred from traditional financial services.
In the past, the goals of FinTech on financial institutions were digitalising and streamlining internal processes. But in recent years, they have become more attuned to the consumers’ financial needs and pain points, with many strategies targeted at using technology to create personalised solutions that cater to different customer personas, and at times, creating a new business model altogether.
Immense Potential in Other Sectors
FinTech has not just gained prominence in the financial sectors; it has also been adopted by many other industries such as manufacturing, e-commerce and real estate, as these industries seek to boost business productivity and efficiency and enhance customer experience.
As organisations in various sectors start to increase the adoption of FinTech in the workplace, professionals working in most of the functions ranging from accounting to supply chain management to marketing will be using these emerging technologies day to day.
Increasing Demand for FinTech Talents
As a result of the rapid adoption of FinTech by consumers and the surge in demand for FinTech technologies by institutions in various sectors, many FinTech companies are facing exponential business growth and are expanding their businesses to capture new opportunities.
This has led to an increase in the hiring of FinTech talents to fulfil the rising demand for such manpower worldwide. Some key findings of the Singapore Talent Survey 2020 conducted jointly by the Singapore FinTech Association (SFA) and PricewaterhouseCoopers (PwC) Singapore revealed that the majority of the FinTech firms are planning to hire more local talents in the coming months to support their expansion plans.
According to the Fintech Talent Report 2021, 73% of surveyed companies are expecting double digit headcount growth in the next 1-2 years. Demand for FinTech talents will continue to grow because of the conducive regulatory environment, boosting innovation in various sectors.
FinTech is Here to Stay
In recent years, there has been wide acknowledgement of the benefits and value FinTech, such as AI, Big Data Analytics, Blockchain and Machine Learning, can bring to our daily lifestyles and work.
The growth of FinTech has been widely supported and fuelled by its adoption by both consumers and financial institutions. Furthermore, this increased adoption has attracted huge investments into FinTech companies.
In addition, the regulators have been adopting progressive attitudes towards FinTech. They have established many regulatory frameworks and built many financial service infrastructures to level the playing field for FinTech companies.
Given all these factors, FinTech is expected to stay and experience accelerated growth in the years to come.
Discover how the financial technology industry has evolved through the Diploma in FinTech, a course developed in partnership with FinTech Academy. Learn how you can leverage FinTech to improve customer experience, generate insights, drive product-service innovation and processes, and make use of the real-world applications of technology in the financial sector.
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