(‘The Right Choice’ is a series by The Indian Express that addresses common questions, misconceptions, and doubts surrounding undergraduate admissions. You can read the stories here.)
The finance landscape is at the cusp of transformation, accelerating global economic growth and driving innovation. With robust finance systems and thriving capital markets, it reflects the significance of embedding traditional finance practices with technology. This has led to an upsurge in students’ interest in Traditional Finance and Fintech, including those who plan to study abroad in the US, UK, Canada, Australia and other countries.
Though there is a synergy between traditional finance and fintech, both practices focus on different career propositions and placement opportunities. They are continuing to reshape the financial services landscape and how they are accessed and consumed. Hence, it becomes imperative to understand the clear differences between pursuing traditional finance and fintech.
Traditional Finance
Over the years, traditional finance has been considered the foundation of economic systems. It encompasses banking, insurance, investment management and corporate finance. In addition, it focuses on financial planning, risk management, practices related to wealth creation and regulatory compliances. Students who seek education in traditional finances equip themselves with a deep understanding of financial markets, accounting and investment strategies.
Courses and certifications
The courses in traditional finance are related to accounting, portfolio management, risk assessment and financial planning. Students can explore programmes in commerce, specialised Master of Business Administration (MBA) in finance and chartered Accounting. These programmes provide theoretical as well as practical exposure through internships to work on real-world scenarios and prepare students for multiple roles in banking, auditing and investment.
Career opportunities
Certifications in traditional finance open a vast pool of opportunities in the world of finance. Students can apply for jobs as financial analysts, portfolio managers, investment bankers or even corporate finance consultants. Degree programs such as BCom and MBA offer stability and long-term opportunities to work with established financial institutions. Students pursuing careers in traditional finance work in a more regulated environment than the new data-driven approach.
Fintech
In a digitally-driven world, finance integrated with technology is revolutionising the delivery and accessibility of financial services. The sector demonstrates a more inclusive ecosystem with digital payments and peer-to-peer lending. Students who acquire education in fintech master emerging technologies alongside core financial principles.
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Courses and certifications
Fintech courses and certifications cover diverse topics such as blockchain technology, artificial intelligence, data analytics and cybersecurity. However, these technologies are often paired with deep financial theories and understanding. Programmes like specialised MBA and short-term boot camps offer practical and tech-driven training to make the students future-ready. These courses prepares them to navigate the dynamic and ever-evolving fintech landscape and balancing technical expertise with financial acumen.
Career opportunities
With an increased demand for fintech services, the industry offers exciting career opportunities for students, specifically in data scientists, blockchain developers, fintech product managers and digital banking roles. Fintech startups and established financial institutions are always on the hunt of skilled professionals to enhance customer experiences and streamline operations at their organization. Hence, students trying to make their careers in fintech adapt the skills to innovate so that they stay relevant in the global landscape.
The finance industry encompasses both traditional finance and fintech. Traditional finance moves on a more structured approach, while fintech reshapes the financial services with tech-integration. Hence, it is imperative to equip students with necessary expertise to thrive in their chosen paths. As the industry continues to evolve, students equipped with right set of skills and knowledge be better positioned to capitalize on emerging opportunities and contribute to a globally active financial ecosystem.
(Karan Sharma is the marketing head at AECC, study-abroad consultant)