A job in finance would mean a steady, settled, reliable and dependable professional lifestyle. The on-going pandemic (threat of third wave looms large) has snatched so many jobs.  Just like in other industries, AI and machine learning are entering the scene and causing great disruption in what used to be one of the most stable career choices. Job obsolescence is also becoming a cause for concern in all spheres and jobs in the finance sector are no exception. However the good news is that even in the current environment, this sector provides new openings which can prevent job losses and provide ample opportunities to new entrants. The only challenge is constant upskill or reskill of professional knowledge coupled with technology.

1. Fintech supplementing core Banking :Fintech start-ups and micro lenders are disrupting the finance industry and causing biggies in the Banking industry to rethink their offerings and put innovation to test. This is bringing rapid change to the industry. Banks and NBFCs are beginning to acquire, partner and start their own internal start-ups. The increasing emphasis on compliance, orders to suspend technology platforms of certain banks by local Apex banks and penalising for constant down time of net banking etc have created new opportunities for recruitment of specialists in such areas. Some major banks have also been fined millions for their failure to detect money laundering. But as white collar and cybercrimes are increasing and getting more sophisticated, some banks like HSBC, ABN Ambro etc. are teaming up with start-ups that have developed AI based tracking systems. These can detect even the smallest instances of fraud through predictive data analytics. 

Millennials are increasingly turning to innovative tech-based solutions over traditional (but more stable) banks. They are counting on start-ups to overhaul the way banks work and are more excited about financial services offerings from tech companies than from their traditional Universal Banks.  Whether through acquisition or partnerships, it’s clear that fintech will benefit from the expertise and stability larger institutions can provide. This is a new likely area in which opportunities are bound to arise

2. Data Analyst & Sustainability areas: Data analytics and sustainability are two most needed skills at the moment. One of the biggest trends is the sustainability shift. It’s challenging a lot of business and earning models. But how do you translate that into skills needed to change business models or support energy transitions for clients? It’s not just about transitioning to more sustainable models. Companies and individuals are now benefiting from the trade in sustainable energy.  Airbnb, Ola and Uber gave us new ways to generate income, green trading (Renewable energy, Electric Vehicles) and digitalization could provide new sources of income as well. For instance, how does one know whether solar energy should be directly fed into the state grid or storage battery will make a better sense or how many solar panels you’ll need to make a profit or the trade-off between investing in solar vs wind power? As electric vehicles become more popular, so too are government incentives and tax savings meant to prop up investment. But how do you know what applies best in your case? 

There is a big transition going on. Banks can also stimulate that transition in order to finance, or restructure, or think differently about capital allocation or client transition and processes around it. Another place where the Financial sector can add value is by sharing knowledge and supporting clients in their transition. It just opens up new areas for finance professionals

3. Holding data in Trust: With several data scandals involving tech giants like Facebook and stricter data protection regulations, the focus is on the use of personal data. Recently some banks were hauled up for accessing their customers’ personal spending information. Data can thus refer to payment transactions with hospitals, pharmacies or lifestyle habits of customers, from which special personal data and other sensitive data can be derived.  Leveraging personal banking data help people manage their finances more effectively; the banks have started raising awareness and transparency around data protection measures. This is where a trust officer and his team who can provide clarity around exactly how financial data is being used will be essential.

4. Tapping Start up mind sets with roles: Decentralization and pressure from fintech are also pushing big banks to diversify their services. Instead of traditional banking, many financial institutions may become a source of knowledge to guide individuals in their financial decision-making. This will be crucial in the current economic climate. Wealth management is becoming even more important with pay as you go and automatic transfers moving our money without us noticing. Adding more fuel to the financial fire, more people are becoming freelancers who throw future financial security in the form of pensions into the wind in favour of digitalisation infatuated by flexibility and owning a start-up.  While people would like to have flexibility, they also want to secure their future; otherwise it’s not a sustainable model. This is where financial institutions, with the help of tech, can and are stepping in. As the name implies, wealth management used to be reserved for those who actually have a fair amount of wealth to be managed. 

5. Cyber Security: Apart from partnering with Fintech companies more inter-company collaborations are coming. With the constantly evolving nature of cybersecurity, everyone, from corporations to start-ups to policymakers, is realizing that security cannot be ensured on an individual basis. In our interconnected world, we need greater collaboration to ward off the evolving nature of cyberattacks. A dedicated team to, not just preventing cybersecurity attacks but also liaising with cybersecurity officers across entities is becoming a necessity. Finance can certainly bring value addition to the table. It is an interesting field to be in and the time is now. It is a clash between technology and humans. No doubt it is necessary to retain skills such as creativity, originality, initiative, critical thinking, and leadership. Talented people will always be needed in finance.

6. Cryptocurrencies: Talking about future of finance without discussing cryptocurrencies will be incomplete. Big banks have started to research and test the role they could play in this growing field but for many, lack of regulation makes it too risky. India is also in the initial stages of formulating regulations in this regard. Applying the tech is more important than creating it yourself. Partnering and understanding the new regulations and fluctuations in the market will also be important. Cryptocurrencies are still very murky area for investors and policymakers alike, making it a wild west of sorts. Because of this, finance professionals who understand traditional markets may be able to apply similar skills. 

7…Predictive analysis and Forecasting: This has become a hot new skill many finance professionals are honing and putting to use to make better predictions. This includes being able to analyse current and past events objectively, breaking down complex problems into smaller pieces, and overcoming potential biases in decision-making. Applying this skill to the cryptocurrency market could help investors better navigate the market.