Last week, I participated in a panel discussion on “Fintech Futures: Fintech Careers Explained” at Careers Forward.
Here are some insights:
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Technology is the Winner
TechFin
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In seeking a fintech career, let me begin by paraphrasing a famous John F. Kennedy (JFK) quote:
Ask not what your company can do for you.
Ask what you can do for your company.
Too often, job seekers fixate solely on the perks: the salary, work-life balance, and the allure of a Google-esque workplace. While these considerations hold weight, they often reveal an entitlement mindset.
Instead, candidates should shift their focus to what they can bring to the table in contributing to the company's success.
Fintech companies are driven by disruption, aiming to make things cheaper, better, and faster. Consider these Fintech examples:
Cheaper: Tiger Brokers lowers commissions for buying stocks.
Better: Trust Bank enables fuss-free digital banking.
Faster: Atome speeds up staggered buy-now-pay-later payments.
With this in mind, candidates should consider how they can assist fintech companies in their pursuit of becoming cheaper, better, and faster. This could involve generating innovative designs, enhancing user experience, or streamlining processes.
By emphasizing the benefits to fintech companies, candidates demonstrate a selfless attitude that appeals to hiring managers.
Technology is the Winner
The technology sector holds the largest share of the S&P500, making up 29.6% of it. This is more than double the weight of the second-largest sector, Financials, which sits at 13.2%.
Additionally, the "Magnificent 7" tech giants now account for 30% of the S&P 500's market cap, the highest level in ten years.
All these show that technology is the winner.
This is unsurprising as capital markets typically favor firms with strong earnings growth, and technology provides the most effective avenue to achieve this.
Just look at Tesla's incredible 11-fold increase in value from 2020 to 2021, attributed to its leadership in electric vehicle technology. Similarly, NVIDIA's recent threefold surge to a trillion-dollar valuation underscores its edge as the Golden Shovel of the AI revolution.
For job seekers, the growing importance of the technology sector offers promising opportunities.
This is made even better by the share-based compensation packages typically offered by tech companies. These packages can lead to huge financial gains, especially during an IPO or when share prices go up.
As a result, this creates a virtuous cycle for tech companies: capital markets favoring technology companies lead to improved valuations, which in turn enhances the value of share-based compensation, ultimately attracting top talent to technology companies.
TechFin
In describing fintech, I prefer to use the label “TechFin”. It is technology first, finance second.
Technology, instead of finance, is the cornerstone of bringing value to customers. Without technology, Fintech would cease to exist.
At its core, technology thrives on innovation — new ideas, products, services, and processes. Hence, it is paramount that candidates demonstrate their innovation capabilities. This is key in positioning oneself as a standout candidate for a fintech company.
Reflecting deeper, I begin to see myself less as the Chief Investment Officer (‘CIO’), and more of a Chief Innovation Officer. Focusing on innovative investment ideas is the most valuable contribution to managing investments for my clients.
In short, innovation is key to a thriving fintech career, serving as the best means to serve your customers.
Wrapping up, I circle back to paraphrasing JFK again,
Ask not what your customer can do for you.
Ask what you can do for your customer.