2. LIZ MOODY
OPEN UNIVERSITY

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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

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

11. 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

12. 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

13. 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

14. Liz Moody, Senior Lecturer, Executive Education
The Open University ; |