What Is Fintech?

The meeting of finance and technology, commonly known as fintech, is changing the landscape of investment management. Advancements include the use of Big Data, artificial intelligence (AI), and machine learning to evaluate investment opportunities, optimize portfolios, and mitigate risks.

Investment advisory services are undergoing changes with the growth of automated wealth advisers or “robo-advisers.” Robo-advisers may assist investors without the need for a human adviser, or they may be used in combination with a human adviser. The desired outcome is the ability to provide tailored, actionable advice to investors with greater ease of access and at lower cost.

In the area of financial record keeping, blockchain and distributed ledger technology (DLT) are creating new ways to record, track, and store transactions for financial assets. An early example of this trend is the cryptocurrency bitcoin, but the technology is being considered in a broader set of applications.

Fintech and Changing Careers

Some industry watchers predict that traditional finance roles may disappear over the next 5 to 20 years. If these predictions are correct, employees and employers both face the critical challenge of positioning themselves for the next 10 years of industry transformation. Switching jobs from traditional finance to fintech may seem like a small shift, but there are key differences in work culture and skillsets that investment management professionals should consider.

Why Is CFA Institute Focused on Fintech?

CFA Institute consistently monitors key debates and evolving issues in the investment industry. Fintech, a topic now incorporated in to the CFA Program curriculum, will inevitably impact the way the industry operates, careers in the investment profession, and investor outcomes.

More from CFA Institute on Fintech

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    Machine Learning: CFA Program Refresher Reading

    Exclusive to CFA Institute members, this CFA Program refresher reading provides an overview of machine learning and some of its applications in the field of investment management.

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    AI Pioneers in Investment Management

    Discover how those at the forefront of AI have harnessed the technology to improve business processes, investment decision making, and investor outcomes. 

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    FinTech and RegTech in a Nutshell, and the Future in a Sandbox

    This Research Foundation Brief looks at the regulatory environment that is developing in response to fintech startups and the impact that will have on the success of those ventures globally.

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    Fintech in Asia Pacific

    This report considers the impact that AI, cloud computing, big data, blockchain, and robo advice will have on the investment and banking sectors in APAC.

Discover all fintech resources

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