FinTech Prerequisites

Anyone interested in learning more about FinTech can begin by studying some of the tools and skills required in this vast, complex field. Different sectors require different types of training, and there’s a significant difference between that required for a Data Analyst position and that required for a Blockchain Developer role.

Before considering possible prerequisites for FinTech professionals, let’s take a closer look at what it’s all about.

What is FinTech?

At its most basic level, FinTech simply means financial technology. Its meaning, however, has changed over time, broadening and deepening as financial products and services have dovetailed with technological developments.

The history of FinTech goes back to the 1860s, with the development of signature verification processes. As technologies progress and become more widely adopted, older tools become obsolete. The automated teller machine (ATM) was a novelty in the 1980s, but by 2015 most customers under 30 were already using Apple Pay, Google Wallet, or mobile banking rather than driving to a branch.

Today, FinTech is so ingrained in our daily lives that we might not recognize certain products or services as belonging to that category. Let’s consider some of the most common examples of FinTech companies, products, and services.

What Can You Do with FinTech?

FinTech refers to the many Financial Technology products and services you can use today and some of the companies that offer them. Consider FinTech as an umbrella term referring to three main categories:

1. Services - On a basic level, many FinTech services may be considered products, and vice versa. PayPal is a service, but the platform of services PayPal offers may be called a product itself. To simplify matters, look at services that are now commonly provided and named as such: Banking as a Service (BaaS), payment services like Venmo, and investment services like Robinhood.

1. Products - FinTech products range from the payment app you use on your smart device every day to robo-advisors and digital banking. Currencies aren’t typically referred to as products, but cryptocurrencies certainly fall into the product category as opposed to a service.

1. FinTech Companies - Organizations like Visa and Mastercard top the list of major FinTech companies in the U.S., followed by Tencent and Ant Financial in China, then U.S. companies Intuit, PayPal, and Stripe. These firms offer FinTech products or services, and people generally refer to the companies themselves as “FinTechs.”

Additional FinTech products, services, and technological innovations include wealth management, insurance (a.k.a., “insurtech”), and credit reporting/identity theft protection services.

Is FinTech Easy to Learn?

FinTech can be relatively easy to learn if one has prior knowledge of some aspects of the field. Consider two subject areas that can serve as perfect prerequisites for FinTech careers.

1. Probability & Statistics - Mathematics is an obvious entry point for a FinTech career, but statistical analysis is perhaps the most critical aspect. Mathematical modeling and statistics should be one of their strengths if a person wants to gain expertise for a future FinTech role.

1. Computer Programming - Careers in FinTech vary, from Financial Analyst to Data Scientist. Most programmers need to learn Python, SQL, C++, or Java. Depending on the position, one may also need skills in Ruby, PHP, HTML, CSS, and JavaScript.

Many of these skills are easily obtainable through an online FinTech bootcamp like those offered by Noble Desktop. Check out featured FinTech bootcamps and certificate programs for FinTech here.

Top FinTech Products, Services & Companies

Here are five subcategories of products and services that fall within the FinTech category, either by definition or through their evolution.

• Digital Banking - Digital banking, including mobile banking, is more popular today than ever, and the trend continues to move in this direction. While Ecommerce may be considered distinct from Mcommerce, the use of applications for all types of financial transactions is on the rise—from Amazon purchases to checking bank balances on a person’s smart device.

• Digital Lending and Credit - Considered separately from digital banking, this FinTech category includes peer-to-peer (P2P) lending for venture capital. It also covers traditional services like credit reporting through free credit report companies like Credit Karma.

• Blockchain Technology - Cryptocurrency is one part of the blockchain, which is increasingly important in banking, smart contracts, and even healthcare. Future uses of blockchain technology may include smart cities and supply chain management while potentially disrupting industries like insurance, accounting, and property management.

• Trading/Investing FinTech - Modern stock traders use artificial intelligence (AI) to run data through algorithms to assess risk and determine trendlines. On the consumer side, investors can manage their portfolios with their smart devices through companies like Charles Schwab, Morgan Stanley, and Goldman Sachs.

• Banking as a Service (BaaS) - With the BaaS model, top banks offer FinTech companies, and other third-party providers access to core banking functionality. Top BaaS providers include Bankable, Clearbank, and solarisBank. Top FinTech companies include Square, Venmo, and Stripe.

What to Know Before Learning FinTech

Data Analytics

Before one begins a career in FinTech, studying data analytics will be critical—especially if one plans to begin a career as a Data Analyst, Business Analyst, or Financial Analyst.

Banks use data on everything from ATM transactions to gain insight into their customers’ needs and behaviors, which can in turn lead to more personalized services. Data is also essential for areas like cybersecurity and regulatory compliance. And data analysis helps executives of all types formulate strategies and make decisions.

Noble Desktop’s FinTech Bootcamp is an ideal way to get started. Here you’ll learn financial data analysis with Python and SQL. You’ll also study predictive models, subqueries, and finance-specific topics like IRR, WACC, and NPV.

Another option for FinTech students is Noble’s Financial Modeling Bootcamp. Applicants for this course should have Excel proficiency equal to that gained in their Intermediate Excel course. Check course listings for more information, including prerequisite options.

Artificial Intelligence

Artificial intelligence (AI) and machine learning (ML) can be important factors in FinTech roles, and many FinTech professionals today see these technologies taking on bigger roles in the future.

For example, insurance companies now use AI and ML to evaluate policyholders’ risk profiles; asset managers use complex algorithms to improve forecasting and create personalized investment recommendations; and since AI and ML can detect unusual account activity, they provide a level of automated cybersecurity for banks and other financial institutions.

A person planning to start a career as a Financial Analyst, Risk Manager, or Portfolio Manager should consider enrolling in Noble Desktop’s Python for Finance Bootcamp. Not only does it include training in the essential Python language, but it also covers topics like regression analysis, a fundamental tool for any machine learning researcher. Students can save by taking the Python for Finance Bootcamp as part of the FinTech Bootcamp.

Python Programming

Thanks to its ease of use, the Python programming language is important not only in FinTech but for high-paying positions in software engineering, data science, and quality assurance. Python forms the basis for a host of financial analytics tools, banking software, and cryptocurrency applications. Stripe, Robinhood, and Affirm are just a few of the companies that include Python in their tech stacks.

If students want to gain expertise in Python programming, they can take the FinTech Bootcamp, including the Python for Finance Bootcamp. Noble also offers training through its Python Programming Bootcamp, which is open to beginners. This 30-hour course covers the fundamentals of object-oriented programming (OOP), as well as topics like data types and control flow statements. Students can save by taking the Python bootcamp through the Data Science Certificate or Python Developer Certificate.

Key Insights

• As FinTech expands, its future will no doubt depend on a range of technological advances.
• Dynamic, rapidly-changing areas of study like blockchain development, cloud computing, and the Internet of Things (IoT) will continue to affect how FinTech companies grow and how consumers use them.
• The field is getting more recognition from traditional financial institutions, startups, and end users.
• Whatever a person’s game plan to learn more, they should consider putting a FinTech bootcamp at the top of the priority list.

Learn FinTech with Hands-on Training at Noble Desktop

Some people think there’s only one path to training for a FinTech career, that of a lengthy degree program, but there are other alternatives. Among the most popular is the bootcamp or certificate training model.

Noble Desktop is a leading provider of online education in areas directly relevant to the booming FinTech field. They provide multiple educational options for students, both those who are new to FinTech and others already working in tech. The following are some of their most popular programs.

1. FinTech Bootcamp - This comprehensive FinTech course is open to beginners and can be completed in four weeks full-time or four months part-time. Topics include SQL and Python for data science, automation, and machine learning.

1. Python for Finance Bootcamp - The 18-hour Python for Finance Bootcamp acquaints students with financial models, managing portfolios with Python, and other Python-centered topics. Students can save by taking this class as part of the FinTech Bootcamp. See course listings for prerequisite information.

1. Financial Modeling Bootcamp - A 21-hour program, the Financial Modeling Bootcamp includes topics like Discount Cash Flow (DCF), Leveraged Buyouts (LBO) Modeling, and financial analysis with MS-Excel. Check course listings for details, including prerequisite information.

Other Noble Desktop programs to consider are the Python Programming Bootcamp, Data Science Certificate, and Python for Data Science Bootcamp.