Beginner’s Guide to Fintech in 2024

As the name suggests, fintech  is a combination of finance and technology. It is an all-encompassing term that includes applications, software, algorithms, and other such technology curated to enhance, automate, and make traditional forms of finance more convenient for consumers and businesses alike.

Modernised finance technology solutions have transformed platforms like mobile banking (eg. Paytm, GPay), trading platforms (eg. Upstox), payment services (CashApp, Venmo). The financial technology services space is buzzing with new ideas, with industry having raised over $13 billion in the first quarter of 2024.

Talk around blockchain in finance, cryptocurrency, and new finance technology solutions like Data analytics, Artificial intelligence, Cloud computing, and Cyber security seen inescapable nowadays.

It’s no secret that fintech and blockchain financial technology have been on the up and up over the past decade. If anything, the past couple of years have made it glaringly obvious that fintech is going to dictate the future of the finance industry. 

Turning a blind eye to it simply because it seems like an intimidating new-age concept will come back to bite you. Familiarising yourself with fintech, whether that be in the form of fintech certification courses, or fintech certificate programs that provide you with immersive hands-on experience through online mediums, will develop your skillset to future-proof yourself.

A quick recap of fintech history

The term fintech may have been coined not so long ago, but the concept isn’t necessarily as old as you’d think. The earliest developments in fintech can be traced back to the 1950s, back when the concept of credit cards was introduced by the Diners’ Club. 

The idea that people wouldn’t have to carry paper money and coins everywhere they go was a more than welcome change in their everyday lives. The positive reception of these credit cards prompted Amex to introduce them to the general public for other payments in 1958. 

Fintech would never be the same after Barclay’s’ installation of ATM machines in 1967. It was a game changer that opened the floodgates, creating a massive influx in fintech users. The industry has only seen ups since then, with evolutions like NASDAQ in 1971. 

The introduction of which completely changed the face of not only the stock market, but also fintech forever. Fintech continued to grow, spreading its arms of influence to evolve the financial services like insurance and payments over many decades. In 1998, PayPal became one of the first fintech companies to predominantly operate over the internet. 

It was a significant development that indicated developments and integration with mobile technology, social media, and data encryption. The influence of fintech over our lives grows with every passing day – innovations in mobile payment services, blockchain in financial services, and other new avenues of technological financial solutions are propping ever so frequently.

Source: Global FinTech Adoption Index 2019 – EY

• Fintech offers simplified, and convenient modernised solutions and make services more accessible and affordable to people.
• By utilizing Big data, Artificial intelligence, and encrypted data companies are able to personalise services and market offerings in an infinitely more effective manner to drive adoption.
• An industry with new innovations constantly on the horizon, present more opportunities to grow and expand. A market brimming with new service offerings help attract consumers to the industry.
• An online presence makes for much more affordable scalability and adaptability to changes in the industry. Operating through online mediums also how to potential to scale globally and transform the way companies conducted their business.
• Integrating cyber security, and an encrypted blockchain in financial services offer a more robust safety system. It also helps to comply with financial data.
• The cost effective, flexible, and inclusive nature of fintech services provide companies with significant savings of costs, making services like crowdfunding, insurance, and loans more accessible to people.
• Ever since the introduction of fintech in the financial industry, it has done nothing but benefit the industry by increasing efficiency and making operations safer. A new booming industry also helps pump cash into the economy and create a world of new job opportunities in finance. You might want to consider a few fintech certification courses and fintech certificate programs  like the Hero Vired Integrated Program in Finance and Financial Technologies to familiarize yourself with fintech opportunities.

The scope of a growing fintech industry

Any innovations in technology the improve financial services technology by providing new modernized solutions to different business situations can be termed as fintech. Big data, artificial intelligence, and blockchain technology how transformed the way companies in the financial industry operate. 

Invaluable consumer behaviour insights and analytics have helped companies foresee trends and changes in the market to create new ideas and strategies.

Start-ups and tech companies with bold and inventive new ideas and concepts are at the forefront of going against the grains ne challenging traditional industry practices. Reputed financial institutions and banks have been quick to recognise the influence of fintech and have adapted well, by integrating modernised solutions into their operations. 

Concepts like Machine learning and Artificial intelligence fuel consumer-based concepts like trading insurance mobile payments and saving. 

As a surprise to probably no one, the Covid-19 pandemic forced the financial industry to evolve in 2020. An unprecedented situation with minimal human interaction, suggested fintech as the only way out. 

Consumer and business digital adoption leaped 5 years ahead in a mere 8 weeks as per a recent study in McKinsey Digital. Digital services have become a necessity and are here to stay. The global fintech market that was worth $127.66 billion in 2018 is expected to reach $332.5 billion by 2028.

Fintech trends that will influence the market

Digital transformation of banks

the simplicity and convenience of being able to manage your money loans and insurance through digital banks are likely to grow. Banks are deploying robo advisors and advanced algorithms to fully digitalise services. The global digital banking platform market is expected to grow at a compound annual growth rate (CAGR) of 11.5% by 2026.

Cryptocurrency and blockchain growth

Cryptocurrency is the fastest growing segment in the fintech industry increasing at a rate of 2.4 times. Cryptocurrency start-ups have managed to raise $7 billion in Q1 of 2024 alone. As a result, blockchain technology is also likely to grow with advanced data encryption. Many experts have dubbed this year to be the ‘year of blockchain’.

Going green

The younger generation is very conscious about the environment and prefer solutions that focus on climate change in some way. Companies have recognise this mind set and a transitioning into greener solutions which has enable the growth of ClimateTech software.

More funding for borderless operations

With borderless e-commerce spreading to more parts of the globe, the expanding market is bringing funds to DeFi, cryptocurrency, BaaS, embedded finance, and challenger banks.

SuperApp dominance

Apps that provide consumers with a one-stop shop for all their transactional needs like trading, payments, bookings, and other services through a single app will continue to gain favour with consumers.

Machine Learning and Artificial Intelligence

These usual suspects like will also continue to play a big role in shaping the evolution and future of the fintech industry.

A world of new opportunities in fintech

In an attempt to shift to personalised offerings fintech is expanding to industries like education, fund raising, management, and even the retail banking sector. 

In their search for customer-centric technology-driven financial solutions, companies are open to expanding and onboarding new personnel that can work towards this vision. 

Companies are always the lookout for skilled individuals who have a few fintech certificate programs, or financial technology courses under their belt.

Some of the best opportunities in the fintech space are completing financial technology courses are:

• Data Scientists
• Financial Analysts
• Robo Advisors
• Blockchain Experts/Engineers
• Risk Compliance and Information Security Professional
• Cloud Engineers
• DevOps Engineers
• Marketing Executives
• Release Engineers
• Information Security Analysts
• Operations Managers

Hero Vired’s Integrated Program in Finance and Financial Technologies is an industry-focused fintech certificate program that has been carefully curated for anyone interested in making a career in fintech, who comes with basic exposure in banking, or any finance related domain. 

The industry-leading faculty will train you in the practical applications of the fintech revolution to bridge the gap between the skills that the industry is looking for and what academic or learning institutions are teaching including operations. 

By working on real-world projects, you will gain hands-on experience regarding:

1. Programming: Hands-on coding in Python, will help you analyse and measure valuations and risks. Core programming enthusiasts even have the option to opt for our Full Stack Development program.
2. Blockchain: Blockchain and related concept of distributed ledgers, including cryptocurrency, will be covered extensively are for to be able to understand their influence on modern finance.
3. Equity Valuation and Investment banking: It will teach you how to write an Equities Research Report by covering how investment banks build the underlying models of their equity research reports.
4. Opportunity to work at a Work at a Venture Capitalist firm: By focusing on non-traded or private firms, which are extremely difficult to value, you will learn to use market sizing, market shares, and growth rates to value unlisted firms.

Apart from these concept, the program also gives you a deep understanding of financial markets, and stock trading. Understanding relationship with the economy, the labour market, and the psychology of the markets, along with the above mentioned concepts and skills are crucial for someone looking to transition into the fintech space. 

Comprehensive and well-designed financial technology courses, and fintech certification courses are key to finding opportunities in this industry.

Through the fintech certificate program, you will also earn transferable credits and eligibility for an MIT MicroMasters® program certificate* (pathway to Masters Programs globally).

As fintechs grow, there will be an increasing demand for leaders with expertise in the technical know-how. There will be opportunities in roles, not directly related to technology, and yet, pivotal to the organization. 

Therefore, experts in related fields, with an understanding of key financial technology concepts, will flourish.