7 Fintech skills every developer should know

When the tech-revolution took place in the financial sector, we would say Fintech was introduced. It was just like any other invention that lasts for some days and vanishes. So, everyone took it just like any other invention that would come and go without many businesses noticing it. But Fintech took a leap. The initial steps were taken by many startups who are now pioneers of the league. Lately large-scale enterprises realized that it’s not a nebulous technology invention but it is here to stay. It demanded specialized Fintech skills to get work done. We see unnumbered inventions in Fintech software include robo-advisory and asset management firms, cryptocurrencies, online lenders, online banks, peer-to-peer lending platforms, mobile payment firms and several other inventions that will make businesses overpowering.

In this article we have framed top in demand skills required for a business to thrive in Fintech industry.

1. What is Fintech?

It wouldn’t be incorrect to say that the revolution in the financial  sector is called FinTech. It is under a larger and diversified umbrella that refers to a variety of financial services offerings. If we were to define Fintech then it is an agile and faster way of providing financial services with the use of software and technology.

The FinTech industry specializes in making or breaking business boundaries by using the apt use of technologies. It is one in many ways of redefining the financial services industry, reshaping the financial landscape, and putting old business models out of business.

FinTech centrally supports finance in many ways, making it more accessible to both individuals and businesses. Though the fintech industry took time to adopt technology but the technology offered a lot to fintech companies. There are increasing signs that Financial is innovating with newer technology for both types of users, personnel and commercial.

If the Fintech businesses want to develop a software then they have an option of developing it either inhouse through the experience of their IT professionals or through experienced IT managers.

2. FinTech Professionals & In-Demand Skills

FinTech Professionals & In-Demand Skills

Fintech is strongly driven by technology and that demands specialized talent and skills. The key on-demands skills of Fintech professionals are broadly classified into 5 categories.

Technology is the backbone of the fintech  industry and it keeps on getting innovated with time.With the initialization of fintech there has been evolving technologies playing a significant role. The most in-demand skills are the expertise in mobile and web engineering, APIs, backend engineering (Python, Java), data science, artificial intelligence, machine learning and top notch programming skills.

In the development process of financial technology, your business should have an overarching strategy so that the technology benefits the best for you. Since we have moved to full stack development for specifically the financial industry commercial segment. There is a segregated portion which involves client side programming or server side programming languages or could be backend technology. Fintech firms also need to work on the user experience of the developed applications as a part of software development. The user experience (UX) is frequently the disruptive reason behind the Fintech industry, allowing them to grab market share by offering a more customer-friendly approach than their more established competitors. As a result, developers with a passion for design, architecture, and development are in high demand.

2.1 Blockchain & Distributed Ledger Experts

We see an exponential growth of blockchain as a technology in the finance sector. Blockchain technology is like a synonym to security and thus is used in many digital money transfers via bitcoins or cryptocurrency. The finance industry has seen overwhelming growth in technology which has given a rise to multiple new financial services. Over the past decade, there are many consumers seeing a consistent rise in the value of digital currencies like Bitcoin, XRP and Ethereum. These technologies have disrupted the core banking industry. As the underlying technology, Blockchain technology uses a single, shared, consensus and ‘ledger’-based system of transactions to enable the simpler lending process, transactions or reconciling money.

Blockchain is here since 2013 and has been evolving successfully since then. The Blockchain theory is an enhancement to fintech skills and most businesses use it in app development for business to develop a secure and performing application. You don’t specifically have to spend money on hiring cybersecurity professionals for problem solving, instead blockchain will do the job effectively.

2.2 Machine Learning Applications in Fintech Industry

Machine learning is another addition to the betterment of fintech services. This makes it necessary to understand the inner workings of machine learning applications. One of the most common applications of machine learning in finance is process automation. By using process automation, businesses can reduce the manual aspect of working and expect quicker, meticulous and efficient work. If you are considering machine learning as a part of fintech services then the developer you are hiring must know these fundamentals. The logic of algorithmic trading, financial modelling, forecasting, logistic regression, and other support vectors.

2.3 Knowledge of Artificial Intelligence (AI)

Definitely, AI is here, there everywhere. specifically in the banking sector it has been a key dominating technology. Like have you seen automated Chatbots- that’s AI or have seen robotic process automation for claim management- that’s also a part of AI. Similar to this, we might showcase multiple options and these technology aspects make it easier for fintech firms to do business.

In the banking sector, specifically in the insurance sector to automate handling mechanisms using Artificial Intelligence and handling a large amount of data in a short time. It can even expedite certain claims, reducing overall processing time and handling costs while improving customer experience. These algorithms look for patterns in data to aid in the detection of fraudulent claims.

2.4 DevOps and the Drive For Automation

As businesses are expanding there is a constant need to improve their technological aspects too. The need and demand for process automation grows. DevOps handles both operations and development concurrently. This leads to faster deployment and efficiency. As a result, there has been a high demand for DevOps and skilled talent in this space. In tandem with the increase in useful data, the need to automate and process the information has resulted in businesses adopting a DevOps mentality. Fintech companies can now increase efficiency and shorten traditional software development cycles.

2.5 Data Science in Financial Services

In financial institutions, data science has a huge importance because it helps businesses in predicting the future from data analysis. Financial institutions have made strict laws to abide by when they use data for their business. Not all businesses have the privilege of accessing the data they want. For, these rights have been issued. Data science enables businesses to evaluate risks and prevent fraud. The expectations from Data science professionals is to have skills such as visualizing and analysing massive amounts of data. They must also have skill to clear the clutter of unuseful inputs.

In databases specifically, there are many database programming languages used to develop accounting software for businesses. Initially, it was SQL databases with relational databases and latest development in databases demands NoSQL languages such as MongoDB, Cassandra, HBase along with applied statistics skills in distributions, statistical testing, and regression analysis.

2.6 Cybersecurity Expertise

FinTech firms deal with large amounts of data. This includes confidential and sensitive data about customers and transactions, cybersecurity professionals are one of the industry’s most in-demand skills. Cybersecurity is essential for any FinTech firm. Because security breaches have the potential to permanently damage the firm’s reputation and credibility. When you hire a cyber security professional you must have knowledge of the architecture of the app, how to administer, and operate. So, while assisting a cyber security professional, you must ensure that they know how to provide data security and protection to keep cybercriminals at bay.

2.7 Soft Skills

Communication skills is a major part of soft skills though there are other skills too that play a considerable role. Other than technical skills, soft skills hold equal importance. Fintech professionals must also develop a strong portfolio of soft skills in order to achieve long-term success in the fintech  industry. Fintech employs the largest of largest employees with different profiles and expertise in different technology. Therefore, there is a need to have a deep understanding of information technology at all levels. As well as the essential soft skills required to manage teams, various personalities, and make great decisions.

The highly sought soft skills in the fintech industry includes people management, scalability, flexibility and adaptability.

3. Conclusion

In this blog of knowing financial technology from grass root level. We understood that fintech is here to stay. It is not like a passing phrase. The company opting for fintech must have candidates with unique knowledge about financial software,tools and technology. We have seen a universal technology transformation in the Banking and finance sector with software skills and communication skills taking the center stage. If you are a business wanting to develop a fintech software then these technologies can bring change for your business and will aid you by providing consumer insights that are useful to establish market trends. With the move to online banking, jobs are becoming simpler and convenient as compared to traditional banks and it redefines financial services. After knowing about all these, you may also get ready to take your next step towards fintech.

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Itesh Sharma

Itesh Sharma is core member of Sales Department at TatvaSoft. He has got more than 6 years of experience in handling the task related to Customer Management and Project Management. Apart from his profession he also has keen interest in sharing the insight on different methodologies of software development.

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    1. Michael

      Read this one and I think it is one of the most important articles on this subject. If anyone wants to succeed in the fintech industry, these skills are extremely important. I appreciate that you have mentioned every fintech professional needs to learn technical skills with soft skills.