What is fintech, in simple terms?
Financial technologies or fintech are projects where there are two components: "fin" + "tech". The financial part means that the business model of the project is focused on financial services. Financial services, in turn, have seven main areas: payments, deposits and lending, brokerage and trading, capital raising, asset and investment management, hedging and insurance.
How to Build a Fintech Mobile App https://orangesoft.co/blog/how-to-build-a-fintech-app
The technological part means that the project has three effects:
Simplification of obtaining financial services
Transformation of processes and business models
Cost structure optimization
Thus, pay-service, BNPL-service, algorithmic trading, on-demand insurance — Robinhood, "Shares" or Revolut can be cited as examples.
Is the Finuslugi platform a fintech?
The Finuslugi platform is one example of fintech products (see another question about the definition of fintech). Financial services help clients compare and arrange different products on the market: investment products, deposits, insurance, etc. This service has both criteria:
the company's business model is related to the provision of financial services (or rather, their search and comparison);
the project simplifies the process of search, selection and registration of financial products for customers.
Most public blockchain solutions remove the intermediary. At the same time, financial services is an industry that traditionally operates according to the mediation model. Hence, solutions such as DeFi and cryptocurrencies that are not compatible with traditional business models and promise to undermine traditional intermediaries. But not everything is so simple.
The technology is heterogeneous. In addition, in addition to public blockchains, there are also consortium and private ones — they are used to optimize processes within the industry. For example, mortgages in mortgages become digital or raising money becomes faster due to digital financial assets. As a result, undermining or support depends, among other things, on regulation and the actions of market participants. But financial services will definitely become more efficient.
Which specialists in economics and finance will be most in demand in the next five to ten years?
Fintech generates a demand for new specialists.
To launch successful fintech products now it is not enough to know finance or be able to create technological projects. Specialists who are able to launch digital products lack specific knowledge of the industry, and an abstract discussion of the product approach without reference to the financial services industry does not allow applying knowledge in practice. This, in turn, gives rise to the feeling that the product approach allows you to engage in digital transformation in any industry, including financial services. As a result, projects do not survive to payback or even launch. Therefore, a successful fintech specialist needs competencies in both product creation and finance.
What are the prospects for fintech in higher education?
It is not very clear — the question of the education of fintech specialists or fintech services for the education sector. If the latter, then the principles of implementation and the effects of fintech services are similar to other industries, but they are aimed at specific products. For example, educational loans or course fees. If the former, then I note that the balance between the "fin" and "tech" components is important. And this requires not financial, but cross-disciplinary managerial/entrepreneurial education. This is exactly the approach we laid the foundation for the FIIT program — participants apply concepts to work on their own project or product, and constant feedback allows this project to be improved and refined.