FinTech is of burning importance for the financial industry to understand and behold opportunities. The global financial industry is experiencing a transformational phase due to fast-paced technological changes. After the financial fallout of 2008 new technology startups, also referred to as FinTech, have started focusing on innovations in the finance space. The objective of these startups is to revolutionize the finance industry. The FinTech industry comprises a variety of financial businesses such as online Peer-to-Peer lending, SME finance, crowd-funding platforms, wealth management & asset management platforms, cryptocurrency, trading management, mobile payments platforms and money/remittance transfer, etc.
The new financial technology players have created a exemplar move in the financial industry through digital innovation. Thus they are paving the way for more transparent and efficient operations. FinTech platforms enjoy a competitive edge due to cost-effective operations and fewer regulations than the traditional finance sector. FinTech is one of the fastest growing startup spaces with over 5,000 startups globally. The value of global FinTech investment in 2015 grew by 76% to $22.3 billion.
Moving from a competitive perspective, traditional financial institutions and FinTech firms now understand that collaboration may be the best path to long-term growth. The success of Financial Industry+Fintech collaboration rests with those organizations who can understand each other’s strength and weaknesses to improve the customer experience while also reducing operational costs. The financial industry players benefit from the collaboration, as there is momentum to reimaging the potentiality. FinTech will benefit from the collaboration with financial industry, as it will provide an opportunity to expand the customer base and develop a service ecosystem around the core offerings. Collaboration is the way to success for both financial industry and FinTech players.
After collaboration of these two industries a huge demand of trained peoples has emerged. Think likely Lloyd Business School (LBS), Greater Noida took initiative with IBM a technology giant to train students in the field of Business Analytics, where students are providing training about FinTech using Data Base and Query Language, Descriptive Analysis, Predictive Modeling, Data Science, Financial Modeling, Structure Equation Modeling, Advanced Data Analytics, Modern Area of Analytics and Managerial Decision Making Tools. On the other side IIMs, and various other B-Schools like XLRI Jameshedpur, Indian Institute of Foreign Trade (IIFT) New Delhi, SPJIMR Mumbai and various Central and State Universities are still focusing on the traditional courses like HR, Marketing and Finance, IB etc.
Thus, young executives trained by LBS, Greater Noida will help FinTech firms with advanced analytics tools combined with a broader pool of data sources, to test new risk management and underwriting models, which results in lower costs, expanded prospect pools and higher efficiency.