Fintech offers many benefits to people with limited access to financial services. That’s one of the reasons why it’s so popular in developing and emerging markets. Fintech not only makes it easier for everyone to take advantage of banking and investing services, but it also provides young people in these countries with employment opportunities that weren’t previously available. This particular sector is unique in that it requires a workforce with a wide range of talent. Obviously, programmers and developers are needed to actually create fintech products. Startups also want employees who have skills that are directly related to financial services. The companies also need marketing teams that can help to spread brand awareness.
In other words, fintech is giving rise to a growing industry that may provide young people throughout the world with greater opportunities to thrive professionally. Here are some of the ways that it’s already having this effect.
In order for fintech products to work consistently, it’s often necessary to analyze large volumes of data. While technology such as artificial intelligence can help to streamline this process, humans are still needed to yield observations from the analysis of an artificial intelligence.
That means there’s a demand for large numbers of employees who can handle these tasks. In many cases, companies that aren’t even technically based in emerging markets outsource these jobs to foreign employees. As some have noted, this has given young workers in countries such as India with greater access to jobs in fields with opportunities for advancement.
Fintech startups are not the only companies that want workers who have skills related to the industry. The fintech revolution has impacted financial institutions by offering services in more convenient and accessible ways.
Luckily, some banks and related institutions have been willing to adapt. They’ve changed the way that they operate, developing their own fintech products in order to stay relevant. That means those institutions need employees who can help them to adapt to the changing landscape of the market.
Many of these employees are likely to be young people. Older employees may be too entrenched in traditional ways of approaching financial services. Banks will need fresh voices and perspectives in order to meet the changing needs of their customers.
Increased Freelance Opportunities
Fintech’s impact on employment opportunities are, in some cases, indirect. For example, many fintech products make it easier for companies to pay independent contractors efficiently. There’s reason to believe this has already yielded a greater demand for various kinds of freelancers.
Thus, even if someone doesn’t necessarily have the skills or experience necessary to work at a fintech startup, fintech products may still give them more opportunities to find freelance work in other industries.
Greater Access to Capital
Fintech has made it possible for young entrepreneurs to acquire capital and grow their businesses more easily. For example, fintech-based lending companies are often more likely to approve loans than traditional financial institutions. That’s because they leverage digital data to obtain a better sense of whether a person is creditworthy. Thus, while a bank may not be confident that a potential lendee is a safe bet, a fintech company will be better equipped to make a smart assessment.
In turn, this makes it easier for startup founders to develop their own businesses, increasing employment opportunities as a result. Some financial technologies, like cryptocurrencies, have also helped young entrepreneurs to raise funding for their startups. By developing their own cryptocurrencies, these businesses can sell them to investors in the hopes that the cryptocurrency will increase in value over time.
Anticipating the Future
All of these points are good news for young people seeking employment opportunities in a dynamic and growing industry. With that said, some wonder whether fintech will affect employment opportunities at traditional financial institutions.
While fintech may render some traditional roles obsolete, both established companies and young workers should focus on the ways in which it will expand access to jobs. Young people who prepare for the future by researching what kinds of talents and experience fintech companies seek will have an opportunity to thrive in a career with tremendous potential for advancement. On the other hand, traditional financial institutions can adapt to the changing market, doing away with some positions while making way for new ones. Again, these institutions will need to embrace a more fintech-centered approach if they want to stay relevant. Doing so will also provide them with the opportunity to offer new jobs to a young and talented workforce.