In recent years, fintech has gained immense popularity, standing for ‘financial technology’. However, it can be challenging to comprehend and may incite uncertainty. The truth is that fintech is merely the intersection of two domains that you may already possess a basic understanding of – finance and technology. You need not feel daunted, and instead, embrace the opportunities that fintech can present.
In the times ahead, the financial services industry can reap substantial gains from technological progress. Nonetheless, it is imperative to have a growing number of fintech developers and engineers to achieve these breakthroughs.
Hiring fintech developers is a significant responsibility that necessitates meticulous deliberation. The ensuing blog offers recommendations on where to find fintech engineers, which undertakings classify as fintech, the set of technical and business competencies indispensable for fintech development, and additional guidelines. By adhering to these recommendations, businesses can facilitate their procedure of appointing and assimilating fintech engineers.
Fintech denotes the previously mentioned categories of ventures.
Fintech is a vast category that incorporates various financial amenities like banking, lending, trading, and investing, which are utilised by a diverse group of users, ranging from individual entrepreneurs to big corporations. Fintech holds numerous prospects, and in this blog, we will prioritise the most vital ones.
Consumer Banking
Banking being an indispensable part of society, any initiative aimed towards enhancing banking amenities for the common public would be highly appreciated. Nevertheless, certain disadvantaged communities may not be able to avail banking services from established organisations. Shockingly, there are still more than one billion adults who do not have access to banking facilities.
As a result of implementing technology in the financial domain, services are now available to communities that were formerly marginalised. The application of fintech has driven down the expenses linked to financial services and has made it feasible.
Conventional banking facilities have advanced due to the development of fintech. Numerous brick-and-mortar financial firms now provide consumers with mobile banking apps, enabling them to carry out essential transactions from their smartphones, consequently eliminating the necessity of visiting a bank.
By and large, fintech is gradually transforming the financial sector.
Blockchain and Cryptocurrency
Cryptocurrencies have gained significant attention from the general public lately. Bitcoin and other digital currencies function on a decentralised system, implying that transactions are registered without the involvement of a central authority. The two most frequent forms of cryptocurrencies are Bitcoin and Ethereum.
Although blockchain technology is a vital component of the cryptocurrency industry, its use is not limited to that domain. Fundamentally, it operates as a public ledger that maintains a record of cryptocurrency ownership and transactions. The decentralised nature of blockchain technology enables cryptocurrency exchanges to be secure and credible.
Apps like Coinbase and Binance provide users with a simple solution for storing and trading cryptocurrency. These applications offer instantaneous cryptocurrency trading and portfolio management amenities.
Mobile Applications for Investing and Trading
Without a doubt, investing in the stock market has never been simpler than it is presently. Smartphones have made it possible to buy and sell stocks without having to visit the stock market or engage a broker, thanks to services such as Robinhood.
Trading apps are not just convenient, but cost-effective as well. Robinhood is an example of an application that enables commission-free stock and ETF transactions.
Mobile Payments through Cashless Transactions
Mobile payments carried out through smartphones are now worth trillions of dollars, turning them into a practical substitute for cash and plastic money. This trend is further expedited by the ongoing pandemic, which has resulted in the rapid growth of mobile payment systems. The high rate of smartphone adoption and the expansion of the e-commerce market support this development. Future projections indicate an annual growth rate of mobile payments to be roughly 30%.
Previously, if you were interested in investing but lacked the knowledge required to get started, seeking guidance from a financial advisor was often the norm. However, this would typically demand a significant financial investment in order to avail their services.
Robo-advisors, such as Betterment, offer a more economical substitute to human financial advisors. They simplify stock market investing, making it more reasonably priced and readily available since they can be utilised at any time and do not necessitate a significant initial expenditure.
Robo-advisors commonly initiate their services by inquiring about your financial situation. Following the information provided, they guide and oversee your investments with minimal human involvement. Their automated investment advice generally does not need much manual supervision.
Lending
Innovations in financial technology have created various new opportunities for obtaining funds. A popular option nowadays is peer-to-peer (P2P) lending, which allows those seeking financing to access resources through online marketplaces like LendingClub.
Thanks to online fundraising platforms, obtaining finance is now possible for individuals who had difficulties doing so previously. Furthermore, LendingClub provides its data for research and the development of machine learning models.
Crowdfunding
Crowdfunding sites like Kickstarter and Patreon provide a venue for individuals to easily acquire financial backing from the public. This fundraising approach enables those with innovative ideas but limited credit to perhaps raise substantial capital by reaching out to numerous people for small donations. Crowdfunding has made it possible for individuals to solicit money from a much wider audience rather than just their acquaintances and relatives.
Crowdfunding is not limited to startups only; it can also assist individuals in funding medical fees, art supplies, and other significant causes.
Competencies Required by Fintech Designers
Fintech designing is a challenging profession, demanding a wide range of abilities and expertise. Technical and business competencies are two of the essential fields that require mastery for success. These will be elaborated further below.
Technical Expertise
Fintech designing is an ever-evolving sphere that demands exceptional technical expertise. When hiring fintech engineers, it is crucial to consider the diverse abilities requisite to the job. These include fluency in programming languages, a grasp of financial systems, and a proficiency in problem-solving. The precise requisites of each application or enterprise may require greater emphasis on particular skills, hence must be taken into consideration when evaluating potential candidates.
Developing Programs
What sets fintech firms apart from traditional banks is their implementation of cutting-edge technological solutions. Thus, a Fintech Engineer must possess software development abilities; Fintech establishments necessitate personnel with expertise in both web and app designing.
Analytics Computing and Scientific Data Mining
Fintech enterprises depend greatly on gathering voluminous data to shape their product development. Hence, to ensure the utmost excellence, the backing of an adept data analyst or data scientist is necessary to handle and scrutinize the massive volumes of data accumulated.
As a Data Scientist, my responsibility is to assess existing data to ascertain valuable insights that can be employed to invent or enhance products and services. Decisions founded on data are more authentic and reliable than those derived from speculations or personal views.
To single out a suitable data scientist, it is crucial to appraise the candidate’s skillset. Mastery of Python or R and their corresponding ecosystems is imperative, while knowledge of SQL is also extremely valuable. Besides, competence in softwares like Tableau and Power BI can be advantageous if the company highlights the significance of data visualization.
Artificial Intelligence and Machine Learning
The potential applications of Artificial Intelligence (AI) and Machine Learning (ML) in fintech companies are nearly boundless. The monetary industry is at the forefront of implementing AI technologies. Explained below are a few instances of tasks that might be made accessible by ML:
Assessing Credit Risk
Automated Trading
Identifying Fraud
Managing Assets
Customer Analytics
AI and ML can simplify and enhance the above-mentioned assignments. When hiring Machine Learning engineers, it is indispensable to consider the diverse skillset required for attaining success. They must be familiar with Python and other programming languages, its associated libraries and frameworks, and possess exceptional numerical abilities. Furthermore, acquaintance with the particular industry is crucial – e.g., ML engineers working in a fintech corporation must possess a comprehensive understanding of the financial sector.
Blockchain
Blockchain technology is gaining rapid momentum within the fintech industry because of its numerous benefits. It is well-known for being rapid, cost-efficient, reliable, transparent, and user-friendly, which makes it particularly effective at sending and obtaining digital payments internationally. Its exclusive features also make it well-matched as the underlying technology for cryptocurrencies. Moreover, blockchain can be utilised in trade finance systems to validate users’ digital identities.
Cybersecurity
As a financial industry enterprise, fintech companies are at higher peril of cyberattacks. The principal apprehension of this is the possibility of financial loss, but it also presents other dangers such as invasion of privacy or detriment to reputation.
Fintech corporations frequently seek the expertise of cybersecurity experts for reducing the likelihood of cyber-attacks. These experts need to be sufficiently adaptable to keep up with the ever-changing tactics employed by hackers and cyber-criminals.
Cybersecurity experts need to be proactive in recognising potential hazards, defining secure measures for handling sensitive data, and implementing safeguards to avoid data loss.
Professional skills
While hiring for a fintech role, it is crucial to verify that the potential candidate has the necessary technical knowledge along with a grasp of business operations. Hence, candidates with the requisite soft skills for the job should be considered.
Collaboration and Communication skills
A Financial Developer must exhibit exceptional teamwork and communication skills as they frequently need to work together with colleagues and in some scenarios, clients. These skills form the foundation for growth in the Financial Technology sector.
Apart from showcasing their technical expertise, it is vital that an individual can efficiently articulate their thoughts and feelings. Even if a candidate has remarkable technical abilities, they may not be a suitable candidate if they lack cohesiveness with other employees and clients.
Problem-solving
The fintech sector is a constantly changing domain. To align with the swift pace of alterations, it is critical for developers to remain versatile and act rapidly to counter new challenges. To satisfy these requisites, they should be inventive and construct out-of-the-box solutions for predicaments.
Adaptation and Agility Skills
Fintech is a constantly changing industry, with rapid advancements being made regularly. To advance in this domain, it is crucial to possess nimbleness and adaptability to cope with new changes.
If fintech engineers aim to be efficient in their job roles, they should focus on maintaining a dedication to continuous learning. Given the ever-changing nature of the industry, it is crucial to stay updated with the most recent techniques and tools to stay ahead of competitors. Recruiting developers who are capable of keeping up with the fast-paced fintech sector can be challenging, hence it is a key consideration.
Efficient Interview Process Facilitation
Works has vast proficiency in hiring high-calibre fintech experts and intends to benefit other enterprises by generating a guidebook illustrating a proficient interview process customized for fintech engineers. This procedure may involve coding examinations and other skills assessments.
