FinTech: What Finance Students Should Know

The fields of technology and finance are more interconnected than ever before. This synergy is driven by professionals who possess advanced business acumen, a strong grasp of financial principles, and the skills required to integrate technology into financial strategy. Therefore, finance students should stay informed about emerging financial technology and understand how technological advancements influence the future of the industry.

Are you considering furthering your FinTech education with an online program? Read on to explore the role of FinTech in an evolving economy.

Understanding FinTech and Its Impact on Modern Finance

Technology has transformed nearly every sector of the economy, including the finance industry. Today, finance professionals, across all specialty areas, use advanced technology to create data-driven strategies and explore innovative business models that deliver client success.

Students who are pursuing a career in finance may consider an affordable FinTech degree program that prioritizes financial technology curriculum. This focus can help equip students with the advanced technical proficiencies necessary to navigate today’s rapidly evolving industry.

What Is Financial Technology (FinTech)?

According to IBM, financial technology—commonly called “FinTech” in the field—refers to technology programs that enable users to access and manage their finances. When FinTech software first emerged, the term primarily encompassed the digital tools that financial managers used in order to oversee client portfolios.

Nowadays, FinTech embodies a wide range of financial mobile applications and software programs that allow both financial professionals and individual users to create and manage budgets, oversee financial portfolios, and track spending. In many ways, it has been the driving force behind digitizing and automating the financial services sector, in turn empowering more people to take control over their finances. Additionally, the rapid rise of FinTech has reshaped global financial systems and consumer behavior, making FinTech education an essential component for future finance professionals.

Why FinTech Skills Are Now Essential for Finance Students

Today’s finance students will find that the future of FinTech careers hinges on their ability to leverage technology in ways that benefit both the organizations they work for and their clients.

Finance students should select a degree program that allows them to develop a strong foundation in:

Automation – Artificial intelligence (AI) and machine learning (ML) technology are reshaping the finance field. Finance students need to understand how to effectively and responsibly use automation tools to meet the needs of their communities.
Data analytics – Data-driven decision-making is propelling the finance industry forward, meaning the next generation of finance professionals should have a firm grasp of how to collect and analyze data in relation to financial strategy.
Digital finance platforms – Finance professionals leverage digital finance platforms to complete their daily tasks. Therefore, a degree program that allows students to enjoy hands-on learning experiences with these advanced (and advancing) digital tools can be key to building this skill set.

Emerging FinTech Trends Shaping the Industry

As technology advances, digital banking trends that define the industry are changing just as quickly. The following are several of the finance technology trends making an impact currently:

Blockchain and Cryptocurrency Innovation

By streamlining payment processes and lowering banking transaction costs, blockchain’s evolving role in finance is undeniable. Blockchain technology allows for decentralized ledgers, which can decrease the need for intermediaries and enable automated processes. Ultimately, this technology is elevating transparency in the financial sector along with trust among consumers. In addition, the introduction of digital assets (such as cryptocurrency) is reshaping investment strategies for all types of clients.

Digital Payments and Mobile Banking Growth

At one time, mobile banking was viewed as a supplement to the traditional, in-person banking experiences that were the standard for centuries. Now, digital payments are becoming the norm—more people are developing a sense of trust in the advanced technology behind digital payments and mobile banking. Both individuals and organizations are relying heavily on mobile wallets, peer lending, peer-to-peer payments, and instant transfers in order to complete financial transactions; thus, the permanence of these digital payment processes is already becoming inevitable.

Robo-Advisors and AI-Driven Wealth Management

AI-driven wealth management is growing more common, with an increasing number of people trusting robo-advisors and automated wealth management tools. The advanced algorithms that underpin these automated tools assist clients, deliver financial insight, and reduce many of the existing barriers to high-quality financial advising services when compared to traditional banking.

According to the World Economic Forum, more than 80% of retail investors will be using AI-driven wealth management tools by 2028, allowing them to focus more deeply on personalized customer service. The role of AI in financial services will continue to expand, though these tools are not expected to replace the need for trusted human wealth management advisors.

Decentralized Finance (DeFi) and the Future of Lending

Decentralized finance, or DeFi technology, is one of the most recent advances in the FinTech sector. DeFi refers to the financial system that relies on blockchain technology and cryptocurrencies to enable peer-to-peer financial transactions. While this technology is still gaining traction, it will likely have a significant impact on the future of lending at traditional financial institutions like banks and lending organizations.

How FinTech Is Changing the Finance Workforce

The impact of FinTech on the financial services industry is evident. A tech-savvy workforce is necessary to navigate this changing landscape, and the number of FinTech job opportunities is expected to rise. Those in more traditional roles must learn to adapt to the changing conditions in the workplace, as well as how to leverage the power of mobile apps and advanced, intuitive tools.

New Career Roles in Financial Technology

Those who earn a FinTech finance degree will find that they are well-equipped for the new career roles that are emerging. These are some of the in-demand careers in financial technology:

Data Analyst – Data analysts are frequently employed by financial organizations in order to manage and analyze large financial datasets, ultimately assisting with enhanced decision-making processes.
Blockchain Auditor – These FinTech professionals work to analyze and evaluate the performance of blockchain technology within an organization or industry, such as education.
Compliance Technologist – A compliance technologist works to ensure that all FinTech technology in development adheres to all compliance regulations in place.
Security Management Specialist – These professionals implement measures to protect consumer confidentiality and data security within FinTech applications.

Blending Traditional Finance Skills With Digital Literacy

While digital literacy skills are becoming increasingly important in the FinTech sector, professionals in this growing field also need a strong foundation in traditional finance principles. In order to effectively apply digital technology in the finance realm, professionals should have a solid grasp of economics and an advanced sense of business acumen.

How Finance Students Can Prepare for the FinTech Revolution

In addition to remaining aware of the finance technology trends redefining the industry, finance students can take active steps to prepare for the inevitable FinTech revolution in the years to come. You may develop the knowledge and skills required for leading FinTech job opportunities by:

Integrating FinTech Topics Into Academic Coursework

Choosing a degree program that intentionally integrates FinTech topics into coursework helps students understand the current applications of FinTech alongside the emerging trends that are shaping the future. At St. Thomas University Global (STU Global), for instance, our Bachelor of Business Administration (BBA) in Finance online degree program incorporates analytics, cybersecurity, and AI-driven financial modeling into the required coursework so you can become proficient in these tech-driven topics.

Building Technical and Analytical Skills Online

Within an online finance degree program, students enjoy a range of coursework that helps hone technical and analytical skills. At STU Global, our BBA in Finance online program presents the opportunity to complete virtual simulations as a way to:

Develop hands-on skills in real time.
Engage in real-world case studies to better understand the applications of FinTech.
Complete industry-relevant projects that help you build your financial portfolio.

Explore the Role of FinTech in Finance Degree Programs at St. Thomas University

The rise of FinTech has increased the demand for adaptable, tech-savvy finance graduates. At St. Thomas University Global, our online Bachelor of Business Administration in Finance program is a flexible, skills-based degree program that prepares students to become leaders in this ever-evolving space. Through FinTech courses online, this degree program equips students with the practical, financial, and technical skills relevant in the modern finance landscape.

Request more information about our online BBA in Finance program today.