What began with ledgers and pencils has evolved into artificial intelligence and cloud computing as the most advanced technology is disrupting the world of financial management.
Technology is transforming all facets of money management for multinationals and start-ups alike. As the world races toward more deeply integrated and increasingly cashless economies, financial technology (Fintech) is the future of asset and risk management, corporate finance, investment banking, accounting and analysis.
And that future is now.
Fintech-mature businesses “radically simplify processes and free up people,” Deloitte says. “As this transition picks up speed, the capacity of humans to add value will be unleashed.”
The Value and Impact of Fintech Innovations
Surging global investment in Fintech — $210 billion in 2021 — with increasingly large deals and accelerating merger-and-acquisition activity are evidence of the digital transformation sweeping through the finance sector. Among the transformational technologies are:
- Artificial intelligence (AI). Chatbots commonly assist with customer service and FAQs, but they are increasingly being used to provide investment advice to customers based on risk tolerance, goals and other factors. AI’s ability to collect, organize and analyze massive data sets in real-time without human intervention has placed it at the center of fraud detection processes. AI will power 95% of all customer interactions by 2025, with consumers expected to eventually prefer interacting with machines over humans, evidenced by a 3,150% increase in “successful chatbots interactions between 2019 and 2023,” according to Juniper Research.
- Cloud computing. As customers demand more convenience, banks are taking their services to the cloud, which enables consumers to conduct business from anywhere. Cloud computing also supports core finance processes such as credit risk management, payment tracking and customer due diligence — a critical regulatory requirement. Overall, cloud computing reduces costs, scales simply and strengthens disaster recovery.
- Blockchain. Best known as the backbone of cryptocurrency, which essentially removes banks from the finance equation, blockchain also supports smart contracts — programs that automate the actions of an agreement when conditions are met. By 2026, the business value added by blockchain automation will grow to slightly over $360 billion, then surge to more than $3.1 trillion by 2030.
“Technology is touching every aspect of finance, transforming decades-old practices and redefining core tasks,” according to Intuition, a finance-sector professional development provider, which is among the disruptors of these advanced technologies:
What’s the Best Way to Prepare for a Money Management Career in the Fintech Era?
A Bachelor of Science (B.S.) in Finance — Financial Management provides graduates with the business acumen, money-management expertise and collaborative skills that contribute to the foundation of a career in finance.
“Although the [financial technology] industry depends on highly specialized roles, such as machine learning and data engineers, domain expertise in finance — supplemented by Fintech knowledge — can help practitioners better compete,” according to CFA Institute.
The online B.S. in Finance – Financial Management program offered by Northwest Missouri State University prepares students for that competition through explorations of topics that may be shaped by the Fintech revolution, including sources such as:
- International Business. Coursework includes issues related to cross-border trade, the balance of payments and problems associated with developing economies. Blockchain technology is transforming international business by streamlining and accelerating international transactions. Peer-to-peer (P2P) lending platforms can connect businesses with foreign investors and lenders while eliminating intermediary costs.
- Principles of Marketing. Understanding the differentiation provided to customers – convenience, accessibility, lower costs, personalization, speed and security – informs the managerial marketing perspective and how to position the brand based on market research, demand analysis and product development.
- Entrepreneurship. Insights into the financial barriers — acquiring funding from investors or lenders, automating processes and reducing transaction costs — are the foundation of start-up success. Fintech capability creates new access points for capital creation, reduces banking costs, speeds up processing times and automates time-intensive activities such as bookkeeping and invoicing.
Northwest’s online B.S. in Finance – Financial Management program is accredited by the Higher Learning Commission, and more than 95% of students who earn the degree begin working in the profession or enroll in graduate programs within six months of graduation.
Learn more about Northwest Missouri State University’s online B.S. in Finance – Financial Management program.
