Business schools are racing to keep up with demand from neobanks and other technology-driven market disrupters

Business schools give a new update twist in postgraduate training

We know that in recent years business schools have been directly challenged by a tremendously competitive and innovative market such as the financial market, but particularly in the Fintech sector.

We know that in recent years business schools have been directly challenged by a tremendously competitive and innovative market such as the financial market, but particularly in the Fintech sector

 

Let’s see, for example, a school like Harvard that has made a move, and in the field of fintech, has implemented a Fintech online short course that highlights in its presentation on the Web the expression “you can leave”, which is a way of expressing yourself very Saxon “You’ll Walk Away With), showing the candidate certain advantages for enrolling in this course:

1º) An up-to-date look at the maturing FinTech industry and an understanding of the technologies set to shape the future of finance.

2º) Information on who is currently adopting and driving fintech innovation and the potential for partnerships between incumbents, start-ups and investors.

3º) The ability to critically assess the future of the financial services industry, through the exploration of complex real-world problems and how FinTech can be used to find solutions.

4º) A strategic framework to apply within your own role and the opportunity to share this with like-minded professionals in an additional conference week.

And to achieve these ends, it exposes the curricular contents of the 6 modules that the course has:

Module 1: Reforming the Banking and Payments Industry. In order for attendees to learn about the FinTech innovations that have revolutionized the banking and payment industry.

Module 2: Raising Money with FinTech. This will give candidates an in-depth look at how FinTech has altered finance through new forms of lending and crowdfunding.

Consider how cryptocurrencies and central bank digital currencies (CBDCs) will affect the future of money. A CBDC or Central Bank Digital Currency (in Spanish, Central Bank Digital Currency), is a form of digital fiduciary money

 

Module 3: Leveraging data with artificial intelligence and machine learning. This module is intended for attendees to learn how advances in artificial intelligence and machine learning have democratized investment and insurance through data-driven methods.

Module 4: Demystifying Blockchain. By this module, students will be able to examine how blockchain can be adopted in financial services and monetary policy.

Module 5: Demystifying Cryptocurrencies and CBDC. Consider how cryptocurrencies and central bank digital currencies (CBDCs) will affect the future of money. A CBDC or Central Bank Digital Currency (in Spanish, Central Bank Digital Currency), is a form of digital fiduciary money that is issued by the central bank of a country and therefore has legal tender value in that nation. CBDCs seek to give fiat money a new face.

Module 6: Shaping the future of FinTech. It allows students to learn how regulation and the battle between incumbents and startups will define the future of FinTech.

Objectives from OUR EDITORIAL for the best knowledge of Fintech

Always in search of what is new and that has an impact and relationship with the field of postgraduate training, it is among the objectives that we have set for ourselves in OUR EDITORIAL. We have already given a sample by visiting Harvard and what is the short course referred to the Fintech world. Without a doubt, it is a reaction of a prestigious business school towards that market in which a huge number of new technology consultants and platforms from the Fintech world are offering not only consulting, but also training, so it is also a certain degree of competition with business schools.

Let’s look at the case of “Euromoney Learning as a learning community”

It begins by saying that it is a learning community for the industry that never stops, which is to assert a reality that is incontestable, because the technological disruption in the financial sector is perhaps one of the fastest growing and, of course, has a high level of developing. Therefore, they clearly state that:

“We understand that learning does not begin or end when you leave the classroom. We know that financial markets never stand still and that technology has simplified and added complexity at a dizzying pace. That’s why our learning approach offers solutions that work for individuals and organizations, no matter where you sit or how you need to engage.”

The company says that they have a long history of success and experience means that they know how to make an impact on their clients’ businesses and provide results in the form of more prepared and confident people. The data is overwhelming: because they have worked with almost every major corporate and investment bank in the world and have provided cutting-edge learning to more than 60,000 professionals in the last 5 years, in more than 80 countries around the world.

Neobanks emerged in response to a new digital age and pain points related to the financial services market of yesteryear

 

Different Approaches to Learning and Development

“We offer learning across all requirements, from access to on-demand content, face-to-face or virtual classroom training, to collaborative solutions powered by fully customized blended learning programs across your organization.”

Developments in the FinTech space are transforming financial services

But it is that in addition to transforming blockchain and accounting technology in all its areas, it is always at the forefront of this revolution of technological innovation applied to the financial sector in all its areas in each subject. That is why prestigious media such as The Wall Street Journal or The Economist have described it as a technology that could change the world. In fact, it is doing it and at a very fast pace.

Blockchain offers banks, asset managers, and other organizations the potential to achieve significant cost savings, efficiencies, and resiliency in relation to their payment systems and payment execution. These are developments that no top executive can afford to ignore. Gaining a foothold at this early stage is vital to shaping future technology strategies.

Let’s see what other organizations are on the market. Who is CFTE?

Next generation technological advances in Finance are disrupting traditional business roles, but also opening new gateways to more advanced opportunities. CFTE strives to help new age professionals reimagine the role of technology through education, so they are equipped to reinvent finance 2.0.

And they also say it clearly: “the courses we offer reflect the changes happening in the industry, including FinTech megatrends such as blockchain, machine learning, APIs and Big Data. Our mission resonates with the goals of every student who wants to quickly advance their career, lead their next digital innovation project, or even drive disruption in finance by starting their own company.”

It is a consulting group dedicated to providing exclusive insights from leaders who are driving developments in the financial sphere, from global CEOs to disruptive entrepreneurs.

The agile nature of neobanks, which generally have fewer regulatory hurdles to jump through, often also means easier account setup and faster processing times

 

What is a Neobank?

Neobanks emerged in response to a new digital age and pain points related to the financial services market of yesteryear. Despite some bumps in the road, the trend is not likely to dissipate anytime soon. And, in an industry that has long needed diversification and a renewed focus on accessibility, that’s a good thing.

Should you consider switching to a Neobank?

For the growing number of customers demanding digital financial services, it is easy to see the appeal of neobanks. It’s convenient to do everyday tasks like depositing checks or making peer-to-peer payments online, and without a surge of fees. The agile nature of neobanks, which generally have fewer regulatory hurdles to jump through, often also means easier account setup and faster processing times.

However, neobanks are not for everyone. They tend to have reduced services compared to established financial institutions. They generally extend limited or no credit to their customers. They focus more on basics like checking and savings accounts than, for example, granting mortgages or other loans. Also, they rarely build physical branches, so users may not have access to in-person account support.

What factors are attractive for a client to switch to a neobank?

Clients considering making the leap from a conventional bank they have worked with for years to a digital first will want to consider factors including:

– The financial products offered, for example, current accounts, money transfer platforms, etc., and how they meet your needs.

– Prevalence and accessibility of ATMs.

– Any “fine print” fees or charges that exist, particularly for overdrafts.

– The rates available for interest-bearing accounts.

Lower rates. Like online banks, neobanks do not have the costs associated with maintaining branches. Some platforms pass those savings on to their customers in the form of lower fees

 

Financial education or budget features that come with the platform

Prospective neobank clients should also assess their comfort level using technology platforms. Questions each of these customers should ask themselves is, Are you willing to download another app and give it access to your financial data? Are you comfortable discussing banking needs with a chatbot? Is online-only customer service appealing, or do you prefer in-person support?

And with some doubts about the current state of the European neobank market, there is another important consideration: what happens if a neobank fails? When Simple announced that it would close in January 2021, it assured users that their accounts would remain accessible for a few months and would eventually be transferred to BBVA, Simple’s parent company. But what about independent neobanks that are not associated with large institutions?

This last point is the reason why it is particularly important to make sure that any neobank with which you open an account is insured by the monetary authorities, in the case of the Bank of Spain in our country, or the North American Federal Government if the operations are carried out through through a US platform.

Pros and cons of neobanks

Like all financial institutions, neobanks have their pros and cons:

Regarding the advantages:

Lower rates. Like online banks, neobanks do not have the costs associated with maintaining branches. Some platforms pass those savings on to their customers in the form of lower fees.

Higher rates. Due to lower overhead costs, neobanks tend to offer higher interest rates to their customers.

Convenience. You can perform everyday tasks, such as depositing checks or making peer-to-peer payments, through online or mobile banking from anywhere, anytime.

Taking advantage of new technologies, such as machine learning or artificial intelligence, helps to take advantage of big data to obtain more information about the needs of consumers

 

As for the cons

No bank card. Neobanks are not banks and do not have a banking charter. Instead, these institutions typically partner with a bank to insure their products. Before registering with a neobank, make sure you are insured by the financial network of that country.

They rarely, if ever, offer physical branches. Neobanks generally do not maintain a physical presence at the branch. It is unlikely that you will have access to in-person assistance.

Fewer services than traditional banks

Neobanks generally have reduced services, compared to traditional or online banks. These institutions tend to focus more on checking and savings accounts than on loans.

Bottom line

Neobanks emerged in response to a new digital age and pain points related to the financial services market of yesteryear. Despite some bumps in the road, the trend is not likely to dissipate anytime soon. And, in an industry that has long needed diversification and a renewed focus on accessibility, that’s a good thing.

What do smartphones, ride sharing and streaming video have in common?

They are market disruptors. A term coined in 1995 by academic and business consultant Clayton Christensen, a market disruptor refers to any person, product, or idea that radically and permanently changes the way an industry operates.

While becoming a market disruptor may seem like a monumental feat, anyone with the right skills, mindset, and drive can do it. Case in point: Netflix, Uber, Airbnb, Amazon, and Apple didn’t start out as industry giants or household names. Rather, these brands were born from an innovative idea devised by entrepreneurs who had the ability to translate the idea into a feasible project and get to where they got: to be leaders in their respective sectors.

If the question you ask is what it takes to become a market disruptor, the answer is concrete: any innovation that creates a new market where an existing market-leading product or service eventually displaces. In today’s technology-driven world, innovations happen every day, but true disruptors often have these defining traits:

– Transform a product or service

– They are affordable and very accessible.

– They are understated at first, but then they become more attractive.

– They enhance established industries and topple existing market leaders.

Steps to become a market disruptor

– Create a disruptive mindset

Disruptors see solutions where others see problems. If you want to create a disruptive mindset, you need to think differently, follow unconventional paths, and create a path forward that is likely unknown.

As a result, fintech job opportunities — at online-only neobanks, payment firms, and “investment tech” robotic advisory providers — are springing up in financial and tech capitals around the world, from Silicon Valley to London to Beijing , Stockholm, and São Paulo

 

– You have to choose an industry

You have to assess the current market landscape and determine which areas are ripe for change and which areas already have too much competition. Often the influence of technology can be an indicator of which industries are ripe for disruption. Information technology and health care are main sectors to consider.

– use technology

Taking advantage of new technologies, such as machine learning or artificial intelligence, helps to take advantage of big data to obtain more information about the needs of consumers. With this data in hand, you can discover an overlooked market, a new product area, application possibilities, or a growing audience segment that is ripe for disruption.

Business schools are racing to keep up with other technology-driven market disruptors

The Fintech market doubled its global volume of activity during 2021, amounting to 210,000 million dollars. This means that technological innovation has been shaking up finance for much of the last decade, and it has been the financial technology (Fintech) companies, which started at some point as the new (start-ups) in the sector, that have become a growing and stable trend.

As a result, fintech job opportunities — at online-only neobanks, payment firms, and “investment tech” robotic advisory providers — are springing up in financial and tech capitals around the world, from Silicon Valley to London to Beijing , Stockholm, and São Paulo. And it seems that innovators like Revolut, Stripe and Nubank are proving just as attractive to job seekers as they are to venture capitalists.

“We received more than 250,000 applications in the first quarter of this year for 576 positions, which makes getting a job at Revolut more competitive than winning a place at Harvard,” says Alexandra Loi, global director of human resources at this neobank. .

“We look for top-of-the-class graduates from top universities in each of the more than 30 countries in which we operate.”

This enthusiasm for fintech has left universities and business schools racing to keep up with the knowledge, skills and competencies required. Some are rolling out specialized degrees in financial technology. One of the first schools to offer fintech education in 2014, New York University’s Stern School of Business, will teach a one-and-a-half year Master of Science in Fintech course next May. It aims to cover topics ranging from data programming to platform strategy, blockchain and cryptocurrencies, machine learning in finance, and fintech leadership.

Business schools prepare executives who are going to be disruptors in this fast-evolving financial field

“We have designed the curriculum to ensure that executives are prepared with the most relevant knowledge and tools to immediately become disruptors in the field,” says Kathleen DeRose, director of the Fintech Initiative at the NYU Stern Fubon Center. Ranking FT Masters in Finance 2022

However, Alex Duffy, director of recruiting for cloud-based banking software group Thought Machine, says the company does not actively seek or recruit candidates with degrees or masters in fintech. “As a product-driven company, we tend to hire people with technical backgrounds or technical qualifications,” he explains. “For our non-technical roles, we have been joined by people with a wide range of undergraduate qualifications, including humanities, arts, sciences and social sciences.”

On the technical side, the skills fintech employers need are rapidly evolving, says Erik Spade, co-founder of online careers platform Highered. “However, a strong understanding of blockchain still sets you apart, along with data science skills and cybersecurity certifications,” he notes.

Fintech employers are also looking for tech talent in other areas such as payment technology, back-end and front-end for data analytics and UX (user experience). Fintech employers look for professionals with experience in the traditional financial industry, risk analysis and business development, but who are highly adaptable to an entrepreneurial environment and with the ability to learn skills online.

Business schools could help meet the needs of fintech by bridging an obvious gap.

From business schools it is believed that there is an opportunity to help people with a technological background to better understand the financial environment with something like a “fintech for technologists” program, because there are also few people in fintech who excel so much in the financial area as well as the technological one.

This information has been prepared by OUR EDITORIAL STAFF

 

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