What is FinTech? Industry Examples, Career Paths and More

The financial industry has undergone significant transformation in the last 20 years, primarily driven by the integration of digital tools, software and technologies. This digital revolution has reshaped consumer behavior and professional practices, leading to more efficient, accessible and secure financial transactions.

Innovations such as online banking, mobile payment systems, blockchain and artificial intelligence have not only streamlined operations but also opened up new avenues for financial services.

So, What is the FinTech Industry?

Financial technology, also known as FinTech, is in everyday life. One key area that you may encounter it is in digital payments with digital wallets that allow users to pay for goods and services electronically. Most familiar are the peer-to-peer payment apps such as Venmo and mobile payment platforms like Apple Pay.

The industry has experienced a large increase in online lending and crowdfunding, which allow you to obtain capital outside the traditional institutions. Many technologies bring savings to consumers, such as Insurtech, which is an online platform for buying and managing insurance, telematics and data analytics for personalized insurance products. Traditional face-to-face finance professions such as personal financial management, banking, and investing are supported and sometimes replaced by FinTech.

Financial technologies have also helped spur more wide-spread usage of cryptocurrencies supported by blockchain.

What is Cryptocurrency, Exactly?

Cryptocurrency is an entirely digital form of currency and is not backed by a physical commodity such as gold, as the U.S. dollar once was, or by the full faith in and trust of a government, like the current U.S. dollar. However, this digital form of currency does allow consumers to buy or sell many goods and services or trade.

The use of cryptocurrency, often referred to as simply “crypto,” has increased over the last few years, according to Dan Serra, CFP®, adjunct instructor of finance programs at Southern New Hampshire University (SNHU). In addition to his adjunct work, Serra is a senior financial advisor for a wealth management organization where he assists families of different shapes and sizes.

A Sercurity.org report found record levels of crypto ownership. In 2024, 40% of American adults owned some form of crypto — up from 30% in 2023. That could be as many as 93 million people. According to the report, 63% of current crypto owners hoped to obtain more in the next year.

At its simplest, "cryptocurrency is a digital currency used to buy or sell goods and services, or trade with the goal of earning more by selling it than you initially paid for it,” said Kristin Regis, senior associate dean of business programs at SNHU, who amassed over a decade of corporate and municipal leadership experience prior to her current role.

Yet, cryptocurrency is not the same as using a credit card to make a purchase online or banking or investing U.S. dollars through an app.

To be considered fully digital, Regis noted that the currency must be only available in electronic form and is based on blockchain technology, as opposed to the U.S. dollar or a foreign currency.

Since cryptocurrency is based on blockchain technology, it’s important to understand how blockchain technology works. According to Regis, blockchain technology is basically a digital ledger stored in a distributed network.

That ledger has encrypted distribution and creates a form of digital ecosystem. Each block of information in that ecosystem needs to be verified as secure before the next block can be verified. Blockchain technology is not solely used in cryptocurrency. In fact, this type of technology is being used — or being researched and tested — by multiple industries. For example, it widely supports supply chain efforts from finance to shipping and even tracking for music royalties.

While the creation of cryptocurrency can be challenging to explain, Regis offered a straightforward explanation: “For the U.S. dollar, the Federal Reserve manages the supply of money, and the U.S. Treasury Department prints it … For cryptocurrency, coding is used to create it,” she said.

The characteristics of cryptocurrency make it highly speculative, which can make it difficult for many investors to have confidence in the currency's value and potential for longevity.

Why is FinTech So Popular?

FinTech has risen in popularity due to a combination of technological advancements, changing consumer behavior and shifts in the regulatory landscape.

Governments and regulators in many countries have introduced "regulatory sandboxes" that allow FinTech startups to test new products and services in a controlled environment without facing the full burden of regulation. Regulations like PSD2 (Revised Payment Services Directive) in the European Union have facilitated open banking, where banks are required to share customer data with third-party providers, fostering innovation and competition in the FinTech space.

FinTech provides modern consumers access to seamless, fast, flexible and around-the-clock services. It also alleviated some distrust in traditional financial institutions after the 2008 crisis as it offers transparency and personalized services that help to build trust and loyalty. Another important advancement of FinTech is reaching previously unbanked populations and providing faster and cheaper access to microlending for clients overlooked by large lending institutions.

What Are Some Jobs in Financial Technology?

While the use of FinTech had somewhat of a slow start due to skeptics, it has become prevalent in a variety of financial fields. This provides a great opportunity for anyone interested in a finance career or already working in finance who wants to add to their financial skills toolkit.

According to Regis, there are a variety of careers that combine the world of FinTech that are poised to offer new career opportunities.^*

Some roles throughout the financial sector include:

• Accountant: Managing cryptocurrency collections for individuals is becoming increasingly important, according to Serra, so a solid understanding of cryptocurrency from an accounting perspective could be beneficial.^* This field is projected to grow 6% between 2023 and 2033, according to the U.S. Bureau of Labor Statistics (BLS).^*
  
  
• Compliance analyst focused on crypto: This role helps companies of all sizes adhere to the new and ever-evolving regulations that affect financial technologies. The mean annual wage for compliance officers in 2023 was $75,670, BLS reported.^*
  
  
• Crypto derivatives trader: These traders help set the price of cryptocurrencies in the future. This work may include roles of securities, commodities and financial services sales.
  
  
• Cryptocurrency analyst: While a financial or investment analyst researches and recommends investments, Regis said a cryptocurrency analyst would focus on cryptocurrencies.
  
  
• Data scientist: This role can be part of the greater computer and information research science field, which is projected to grow 26% between 2023 and 2033, according to BLS.^*
  
  
• Digital payment manager: Serra noted that as more and more companies adopt cryptocurrencies as an accepted form of payment, there will be a need to know how to manage the bitcoin (or another cryptocurrency) account.
  
  
• Financial advisor or planner: FinTech is heavily utilized in financial advising. According to Regis, financial advisors and planners have an opportunity to focus on clients who want to diversify their portfolios with cryptocurrencies. Financial advising is projected to grow 17% between 2023 and 2033, and opportunities for financial managers are projected to grow the same amount, according to BLS.^*
  
  
• Investment analyst: In this role, an analyst focused on cryptocurrency could have an advantage in becoming an investment portfolio manager, Regis said. And, with the highly speculative nature of cryptocurrency, Serra said investors need guidance on how to manage a portfolio that includes crypto.

How Will Things Evolve in the FinTech Industry?

The future of financial technology will be shaped by several trends and developments. Some of the most important and impactful to the industry will be advanced AI and personalization of financial services, including custom-tailored financial advice. Most importantly, AI in fraud detection will continue to analyze fraud patterns and make financial transactions more secure.

There has also been a growing emphasis on Environmental, Social and Governance (ESG) factors in financial products. There will increase in investment in green tech as climate risk is assessed and carbon footprint of companies evaluated. As institution leverage AI and blockchain to automate compliance reporting, increased regulation aided by Regulatory Technology (RegTech) should be automated in real-time.

Cryptocurrency and blockchain adoption should become embedded into the fiscal and economic policies as many countries are exploring alternate central currencies and developing their own digital currencies. This will inevitably lead to more mainstream financial institutions offering cryptocurrency services.

In fact, several well-known companies are already accepting cryptocurrencies, such as “Microsoft, PayPal, Starbucks, Home Depot, Whole Foods and more,” Regis said.

How to Get into FinTech

Financial technologies enable finance professionals to do their jobs more efficiently, and finance is the management of money for consumers — whether large corporations, individuals or non-profits. If this interests you, then a finance background seems like a natural springboard for a FinTech career.

It’s important that financial professionals add FinTech education to their base knowledge to help their clients navigate this new environment. They should explain the risks and rewards of different types of financial technologies used in the industry and how they could help in achievement financial goals.

What Type of Businesses Would Hire Someone With a Background in FinTech?

Given the increase in the use FinTech, virtually any business has the potential to one day use or accept financial technologies. This means that the business world, in general, is a wide-open opportunity for someone with expertise in this area.^*

"All businesses rely on individuals with financial knowledge,” Regis said. “As more and more businesses accept or invest in (new financial technologies), individuals with a background in finance and cryptocurrency will be valuable.”^*

What Can You Do to Build a Career in FinTech?

As in most career fields, networking is key. Get to know others in the field. Read articles and stay on top of industry news. Ask people in your professional network who have expertise in financial technologies if they’re open to informational interviews.

While learning about FinTech is a good start, don’t stop there. Work on gaining practical experience wherever you can to build your skills.

Regis recommends consuming relevant podcasts, magazines and social media. “Conduct regular research to learn more about the field and see where the industry is heading,” she said.

What Major is Best for FinTech?

Earning a degree in finance or a related area that interests you can help prepare you for a career in FinTech.

If you're looking for a place to start, you could begin by earning an associate in finance.

An associate in finance could be worth it if you're looking to develop some fundamental financial skills and want to prepare to move on to a bachelor's degree.

A bachelor's in finance can take your financial skills even further, allowing you to analyze data and bring numbers to life, as well as complete core business competencies.

If you've earned a bachelor's already and are ready to become a leader in finance, a master's in finance can help you develop real-world financial decision-making skills. At SNHU, you can also concentrate your master's in finance on investments and securities, which can help you build skills in analyzing assets, investments and portfolios.

The Bottom Line

FinTech is a concept that straddles the worlds of finance and technology. A finance degree can point the way to a satisfying career in financial technology. Knowledge of and experience with coding, computer science and even the criminal justice world can also help you build a solid career in this industry.

*Cited job growth projections may not reflect local and/or short-term economic or job conditions and do not guarantee actual job growth. Actual salaries and/or earning potential may be the result of a combination of factors including, but not limited to: years of experience, industry of employment, geographic location, and worker skill.

Dr. Zuzana Buzzell is an associate dean of business at Southern New Hampshire University. She has 19 years of experience developing, training and teaching multiple successful finance, business, project management and economics programs in traditional, hybrid and online settings for academic institutions, government agencies and the private sector.

Buzzell was a visiting professor at the Vietnam National University, Hanoi, and held various leadership positions in one of the largest financial service companies in the U.S. She earned her PhD in International Business with a specialization in Finance and FinTech certificate from Hong Kong University. Buzzell’s current research interests are digital ethics and AI, FinTech, cryptocurrencies, the future state of the financial industry and mortgage markets. Connect with her on LinkedIn.

Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.