As with many other industries, technological innovation, particularly AI and machine learning are developing within finance and causing considerable changes to career options and availability. A recent US report stated that over one million bank employees would potentially lose their jobs or be moved from their position due to the rise of automation.
Whilst this report may be concerning to many financial workers, the reality is that as new technology develops, more opportunities are being created within the financial industry. Financial leaders have highlighted that there is a significant shift within the industry, spurred by improvements in automation, business processes, robotics and robotic process automation (RPA). Whilst this will definitely disrupt existing jobs in the financial industry, it will also create a number of new job roles. The main challenge for all businesses in this market is reskilling and training a large proportion of their existing employees to prepare for a new wave of job opportunities, some of which don’t even exist yet.
Financial leaders have discussed and speculated around a number of potential jobs that could be created in finance in the future:
Fintech Headhunters: Startups and microbanks are transforming finance and causing the larger, more established institutions to reassess their portfolio and focus more on innovative services and potentially generating their own startups. Some banks such as HSBC are partnering with startups to focus on AI-based tracking system which is capable of detecting potential cases of fraud. Many people today are moving away from traditional banking systems and looking for more innovative technology solutions. Whether it be a case of acquisitions or partnerships, fintech will only strengthen from combining with the expertise and stability of larger institutions.
Innovative Finance Engineers
Pressure from fintech and other organisations is causing the big banks to rethink their services and expand their traditional offering to provide more insight into making strategic financial decisions. Wealth management is a significant part of finance today and many people are exploring options to efficiently manage their money and secure their futures. By applying innovative AI technology, areas such as mortgages can be automatically managed and handled at optimum times. Long term investments can be implemented and managed when required. People could have more insight into their finances and be capable of creating their own, personalised savings and wealth management services.
Sustainable Wealth Manager
According to financial leaders, data analytics and sustainability are two of the key skills required within the industry. One particular trend is the sustainability movement in finance, which is transforming many business banking models. Aside from the transition to more sustainable systems, both companies and customers are equally benefiting from sustainable energy trading. Green trading systems could create a new flow of income. Financial institutions can support clients in their movement towards more sustainable practices and developing new supportive standards.
Many larger banks are researching and testing how cryptocurrencies could be applied in their organisation. Financial leaders state that understanding how to apply the technology is more important than developing it. Partnerships and understanding the regulations and market movements will become ever more important. The cryptocurrency market remains relatively unclear for most investors and policymakers. Professionals with a clear view of conventional markets may be in a stronger position to apply their skills to the cryptocurrency market. Forecasting, measuring current and previous events and segmenting complex areas are emerging skills in the financial market. Applying this skillset to cryptocurrency could support investors in having a clearer understanding of the market.
In business today, there is a significant focus on data and overall data stream available within a business. Many businesses have recently been involved in a number of data scandals and the use of personal data. Whilst self-driving finance services can strengthen personal banking data, enabling people to understand their finances, it also raises concerns around transparency and data protection measures. This is exactly where data officers can play a vital role in providing clarity concerning exactly how financial data can be used within a business.
With more data and the continued emergence of new fintech businesses, everyone, from large corporations to startups are recognising that security cannot be assumed at all levels. In our rapidly interconnected world, every industry needs to work together to reduce the developing nature of new cyber attacks.
Whilst this may be speculative ideas, what is clear to financial leaders that whilst technology may replace a certain number of jobs, many new and exciting opportunities will emerge as the industry continues to evolve. Technology innovation is necessary for the finance industry to continue progressing, but the human talent is also necessary and retaining skills in creativity, critical thinking and leadership will always be required in finance.