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.
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.
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, there may be a first-mover advantage for those who seek to build their fintech experience now, rather than later. 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.
For Fintech Career Switchers, the Hardest Skills to Master May Be the Soft Ones Learn what soft skills make up the "global intelligence" that the fintech industry values over traditional qualifications like academic degrees.
More from CFA Institute on Fintech
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.
Big Data Projects: CFA Program Refresher Reading This CFA Program refresher reading explores the relationship between big data and fintech and explains how investment managers are using big data in their investment processes.
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.
AI and the Future: Developments, Ethics, and Financial Transformation This video from the CFA Institute Annual Conference considers how artificial intelligence is transforming the practice of investment management, risks, and ethics.
Future State of the Investment Profession This Future of Finance report considers what the future of the profession may look like and considers the impact fintech will have in shaping that future.
Investment Professional of the Future This Future of Finance report presents investment professionals with a roadmap to career success, including the types of roles that will come of the rapid growth of fintech in the industry.
Investment Firm of the Future This Future of Finance report considers how fintech will disrupt existing business models, and prepares business leaders for a successful future.
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.