FinTech is a combination of finance and technology that describes a rising financial services sector in the 21st century. The phrase includes any technological innovation within the financial sector or anything related to innovation in financial literacy to crypto-currencies like bitcoin.
Previously technology has helped accountants and finance professionals in carrying out their business in an efficient manner from double-entry to book-keeping and invention of money to internet banking. But now Fin Tech has been supporting customers and business in various ways. For example, apps like Robinhood charge zero trading fees for online stocks and are user-friendly as well. In addition to this other peer-to-peer lending sites such as Lending Club and Prosper have fueled up competition in the market and have started to disturb the industry already.
What are Fin Tech companies?
Fin Tech companies make financial services easier with the use of technology.
Recently, KPMG introduced mLabs, an accelerator to unite credit unions and banks with some of Australia's most promising FinTech start-ups. KPMG also creates a "Pulse of FinTech quarterly report" which evaluates the latest worldwide trends relating to venture capital investment data on the FinTech sector.
By providing these companies with its expertise, the sector has been growing at an exceptional pace within the European region.
Similarly, the Abu Dhabi Global Market (ADGM) set out its proposal for "Regulatory Laboratory" (RegLab) to help firms, mainly in the financial services sector, to incorporate technology. It will be the foremost such initiative in the MENA region and is likely to create a successful FinTech environment within the UAE.
Some of the popular Fin Tech companies are Adyen, TransferWise, Nutmeg, Currency Cloud and iZettle,
Fin Tech's impact on the UAE Job Market
Fin Tech is slowly emerging within the UAE however, several GCC countries are behind in terms of investments within this sector.
As Abu Dhabi is set to be the regional hub for Fin Tech within the Arabian Gulf and will be a financial free zone it is expected to attract several companies in the financial technology sector.
The two-fold effect is that as several companies will be going FinTech there will be some employees who might lose jobs as their job might be automated.
On the other hand, demand for candidates with a specific skill set of financial and technological background will rise because of the implementation of FinTech.
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