LIZ MOODY OPEN UNIVERSITY

Fintech – shaping skills in FS Liz Moody Senior Lecturer, Open University Business School Author of Fintech101 - “Understanding Financial Technologies”

Conclusions and questions for FS Outline The making of Fintech101 Learning outcomes Collaboration UK Fintech ecosystem Trends and developments Skills Challenges Conclusions and questions for FS

Fintech 101 Learning Outcomes Knowledge & Under-standing a broad understanding the concept of money, how it flows and how financial services evolved and operate currently an introduction to how technology and regulation is impacting on financial services and the drivers behind this familiarity with key financial, economic and technological terms and concepts and the ability to communicate effectively about them ability to analyse and recognise the significance of trends and role of stakeholders in the Fintech environment and assess their impact on the future of Financial Services contribute knowledge and skills to innovation and change programmes in your organisation Knowledge & Understanding Cognitive Skills Professional Skills

5 UNITS - KNOWLEDGE Understanding financial services Introducing Fintech Understanding technologies How Fintech companies are changing the FS landscape Regulation and security What is money – how does it flow via financial systems, products and services Overview of UK stakeholders Fintech – what it is all about Fundamentals of technology – data, standards, big data, security Customer perspectives and changing FS landscape Regulators by sector, ethics, financial crime, data protection

Technology is moving up the pyramid Data gathering, management, analysis, security is the future Automation is making manual data processes redundant A.I. is moving up the pyramid Insight and decision- making are key skills

Low skilled and middle income jobs are exposed to automation? Job Title Probability of computerisation Loan Officers 98.36% Credit Analysts 97.85% Personal Financial Advisors 58.15% Financial Specialists All Other 33.11% Financial Analysts 23.25% Business Operations Specialists All Other 23.17% Computer Hardware Engineers 22.48% Statisticians 21.84% Computer Occupations All Other 21.61% Actuaries 20.59% Information Security Analysts Web Developers and Computer Network Architects 20.58% Financial Examiners 17.05% General and Operations Managers 15.95% Management Analysts 12.90% Software Developers Systems Software 12.82% Compliance Officers 7.96% Financial Managers 6.92% Mathematicians 4.67% Software Developers Applications 4.16% Computer and Information Systems Managers 3.51% Operations Research Analysts 3.48% Database Administrators 2.98% Network and Computer Systems Administrators 2.96% Chief Executives 1.52% Training and Development Specialists 1.45% Marketing Managers 1.39% Sales Managers 1.34% Industrial-Organizational Psychologists 1.22% Computer Systems Analysts 0.65% Training and Development Managers 0.63% Low skilled and middle income jobs are exposed to automation? Study looked at jobs in salary range £40,000 plus How/if emerging technologies impact on these jobs – but what new jobs will be created? What skills does automation replace? What skills will human beings need? Ref Carl Frey Oxford Martin programme on technology and employment

A rapidly changing ecosystem Continuous subdivision and segmentation of sector Impact of political, regulatory, social and economic change Investment behaviour Customer adoption of technology in new contexts Industry reaction/adoption of existing technologies in new contexts/markets Genuine innovation/disruption

Front office (distribution) Changing business models Front office (distribution) Back office (product) Middle office (operations)

Soft skills - design and development of the customer experience So what skills be required? Hard skills - maths, engineering, coding, programming, A.I., analytical skills in context Soft skills - design and development of the customer experience Communication – exploiting all digital channels and social media & ensuring financial inclusion in a digital world where future products are potentially more complex Cyber security - real expertise not just knowing about threats but assessing and averting them and managing breeches Imagining new business models that require new ways of working, different ways of taking decisions Managing ongoing change and transitioning to the new world

Artificial Intelligence Innovation “The innovators of today may not necessarily be the innovators of tomorrow. The question companies need to ask themselves is ‘Are we innovating effectively?’ While partnerships is one of the preferred ways to catalyse innovation, to reap its benefits, companies need to be mindful that whomever they partner with, be it a tech company or financial institution, is a good fit.” Antony Eldridge, FinTech and Financial Services Leader, PwC Singapore Fintech Future Artificial Intelligence Alternative lending Capital markets Cyber security Digital currencies Regtech Insuretech Challenger Banks Payments Forex Robo Advice Blockchain

Technology will impact on business models and therefore jobs Conclusions Technology will impact on business models and therefore jobs Impact will be across back, mid and front office areas FS knowledge and ability to create tech solutions is in short supply Challenge is stay current as an individual Culture shift and values to attract and retain tech talent will be needed

Liz Moody, Senior Lecturer, Executive Education The Open University 07770 684871; 01908 858783 liz.Moody@open.ac.uk | www.open.ac.uk/oubs