FinTech as a Career: Explained 34 Choosing Your Role and Company in Financial Services

FINTECH AS A CAREER: EXPLAINED !

Whether you’re purchasing coffee at your local shop or managing your finances, FinTech is all around us in 2022. But what is FinTech, and how is it being used?

If you are interested in a career in finance, you probably heard of “FinTech”. This is the segment of the financial services industry that leverages on new technology to create a better user experience for consumers and businesses. FinTech is used by all sorts of companies, ranging across asset management, payments, insurance, banking, and personal finance.

WHAT IS FINTECH?

FinTech, a combination of the words “financial” and “technology”, is used to describe providing financial services through software or other online technologies. FinTech helps companies, businesses, owners and consumers to better manage and facilitate their financial operations and processes by utilizing specialised software and algorithms.

FinTech is also used in the development of cryptocurrencies such as Bitcoin.But while that segment may see the most headlines, the big money in FinTech actually still lies in the traditional banking and financial services industry. Here are five active areas in FinTech:

Open banking This is the practice of sharing customers’ banking data with third parties electronically. This could include apps designed to help people keep track of their spending habits, messaging apps that enable people to transfer money to their friends, or centralised online payment gateways. The open banking segment in Malaysia is still in its early stage of development, though this is already widely implemented in many developed economies.

Artificial intelligence This includes chatbots that can respond to customers’ queries or execute financial transactions more quickly and cost-effectively. Example of companies developing chatbots in Malaysia include XIMNET, Botsify, Chatbot Malaysia and PointStar Malaysia.

Insurtech This area seeks to utilise technology to simplify and streamline insurance purchasing, claims, and payouts. An example is VSure.life which has leveraged its platform as a digital insurer by partnering with insurance companies such as Gibraltar BSN Life.

Regulatory technology or

RegTech This aims to help financial services institutions meet industry compliance rules especially those on anti-money laundering and Know Your Customer (KYC) due diligence protocols for fraud prevention. Some examples of companies offering KYC services are Lexis Nexis Risk Solutions, Shufti Pro and CTOS.

Robo-advisors Digital platform that use algorithms to automate your investment portfolio, enabling execution of trades in response to market movements without the need for constant human intervention. Wahed Invest, StashAway, Akru and KDI Invest are some of the companies offering robo-advisory services in Malaysia.

CAREERS IN FINTECH

Getting a job in FinTech is dependent on your skill level and how well you can showcase that skill to your employers. FinTech graduate jobs vary depending on the companies that recruit for them, but here are some of the main entry routes into the industry:

Product Manager

Data Scientist

UI/UX and Graphic Designer

Product Engineer

Cloud Management

Back-End Developers

Learn more about the roles you are looking to apply for and narrow them down to a couple of options that interest you. Reach out to professionals within the industry if you can to hear their input on what a career in FinTech involves. This may help you plan your career journey better.

THE SKILLS YOU NEED FOR A CAREER IN FINTECH

FinTech is an evolving industry, and as new developments arise you will need to keep upgrading and reskilling yourself. Here are some of the skills you may need to be familiar with, depending on your desired entry role into FinTech:

Working with application programming interfaces to synchronise multiple tech platforms.

Machine learning, data mining, and data interpretation (for data science roles specifically).

Basics of software/app development— useful regardless of whether you are joining a technical or non-technical FinTech role.

Analytical and critical thinking skills— you will need to identify users’ pain points or predict their behavior and develop solutions in response to those insights.

Problem-solving skills— the FinTech segment is constantly evolving, so knowing how to address ambiguous or developing problems at work with no clear past precedent will be key to thriving in this line of work.

CHOOSING YOUR ROLE AND COMPANY

IN FINANCIAL SERVICES

Regardless of your field of study, jobs in the financial services industry are plenty and within reach. It simply takes some research into the different firms and roles available before you decide which one is the most suitable for you.

FIRMS IN THE INDUSTRY

Employers in the financial services industry include firms that provide specialised financial services such as actuarial consultancies (e.g. Aon), insurance companies like AIA, Tokio Marine and Allianz; and retail banks such as Maybank, CIMB Bank and RHBc Bank. Meanwhile, Bank Negara Malaysia and the Securities Commission Malaysia (SC) are regulatory bodies in this industry that ensure compliance is observed in financial transactions and activities.

The type of firm you join will depend on the role you choose to take on. If you choose to join a larger corporation, you will generally enjoy much more structured support and training. New hires in major financial services conglomerates can expect to undergo a comprehensive training programme that gives them a broad rotation across different areas of the business. On the other hand, if you join a smaller financial services firm, you can expect a lot more flexibility and ownership over your own work. These firms offer a more personalised touch for staff, and you may end up working in interesting niches that larger firms may not cover or working with more highly-customisable financial products and services.

ROLES AVAILABLE

There are many career possibilities in the financial services industry, including but not limited to:

Actuary

Commercial banker

Financial planner

Insurance broker

Insurance claims handlers

Product manager

Retail banker

Underwriter

THE IDEAL CANDIDATE

The financial services sector in Malaysia has undergone major changes in the last two years, with an increasing number of customers choosing to self-service personal financial products through online platforms. In addition, proliferation of e-payments and the issuance of new digital banking licenses to companies without traditional brick-andmortar banking operations has been another big change for employers within this industry. Candidates boasting strong IT and data analysis skills are in huge demand now as financial services firms look to navigate these major digital shifts. Besides skills like teamwork and communication, employers are also seeking candidates with strong empathy and people skills who can guide clients through making major financial decisions at critical times. For example, having exemplary persuasion and negotiation skills aren’t enough for a financial services consultant. Candidates would also need to be able to see things from the client’s perspective, identify their needs, and then devise corresponding financial planning strategies that a client can feel reassured with.

The ability to innovate and provide fresh perspectives are also valued by financial services organisations who wish to stay relevant in today’s society. Other sought-after skills include market intelligence and analytical skills, which will help you find and offer value-added services to ensure customer satisfaction.

WORKING IN THE INDUSTRY

Compared to investment banking, the financial services industry has more regular (or flexible) working hours, and candidates may have an easier time maintaining a healthier work-life balance as a result. While basic salaries may not be as high as those working in investment banking or fund management, earning potential in financial services is still quite generous – especially for sales commission-based roles.

When applying for entry-level positions, the key is to identify the most rewarding entry-level jobs in terms of future career prospects and salary. Take the time to think if the job will be the best fit for your abilities and interests. Once you have narrowed down your search, you can begin applying!

Last but not least, if you decide to pursue a career as an actuary, bear in mind that employees are often required to balance full-time work and further studies to attain professional qualifications in order to progress in their careers.