Moving from finance to fintech : What you need to know

We are living in the 21st century where things change like seasons! The financial sector has evolved rapidly over a decade (thanks to technology) software, as well as cloud-based technology, revolutionize the way the industry operates. 

Before moving ahead let us know what Fintech really is 

Basically financial technology, aka “Fintech”, is a unique combination aiming for the traditional financial methods in the delivery of financial services.

It is one of the emerging industries that promotes technology to improve activities in finance specifically. The use of smartphones for mobile banking, investing service & even for the cryptocurrency are a few examples of such technologies.

Wondering how can you shift without much effort?

Here are the few steps which you must keep in your mind:

Recognize your transferable skills

Just like any other job in the market which demands certain skills that are also transferable across multiple disciplines, moving from finance to Fintech is also similar. 

The 1st step in order to do that is to look at the skills you developed in a couple of years which are needed by Fintech firms.

 Although it might be true that coding, data analysis is like the bread & butter of Fintech, nonetheless there is still a need for more traditional skills in order to survive in this industry.

Understand thy expectations

Now since you know the skills which you can actually offer, it is crucial to analyze landscapes to see what practical prospects with them really are. 

For example, choosing between a role where you can work on a particular task all day long or working on more generalist role for business are 2 different things.

Having the skills for former won’t have any kind of shortage of jobs, except for the fact that you might be competing against some of the top programmers out there. 

On the other hand, opting for latter & also getting involved with a Fintech start-up is a great way to bring fresh insight into the business.

Know how to sell yourself

Once you get a good understanding of what your goals are & also what you can provide, you can combine them accordingly. 

Plenty of the Fintech companies would jump at the opportunity to hire a financial professional with loads of experience & qualifications, irrespective of their technical knowledge. 

Network and retrain

Whenever it comes to switching jobs or industries getting help from others is always favorable. You must have got a large network of colleagues, clients, industry friends that you’ve built up over the years, use them. Look for folks who have made a similar switch and succeeded. In case Fintech hasn’t affected your career already, it soon will. 

CONCLUSION 

Moving to a new place is a tough task and requires lots of guts for it. But when you know what your destiny is and how you are going to reach there, nothing seems to feel like a hindrance.

Would businesses be able to Rely on Blockchain-Driven Supply Financing?

Panaesha Capital

A normal production network process comprises the handling of the progression of exchange archive utilizing the Blockchain as the fundamental database layer, which will ensure the validness and permit the straight-through preparing in the receipt endorsement. The exchanged products are additionally particularly distinguished and submitted to the authority of a brilliant contract that ensures that installment will be handled if certain occasions are fulfilled (for instance effective transportation). Utilizing blockchain could, thusly, result in larger amounts of trust in business relations, less expensive exchange expenses and quick preparation of cases.

Opportunities in the Field

  • Effective Processing:

Since the fundamental criteria for the accomplishment of inventory network account are the proficient and quick handling of store network information, the robotization assumes a critical job in speeding up and dematerialization of procedures. In spite of the fact that a specific dimension of such computerization is now accessible in ERP frameworks, a back-end Blockchain framework could additionally improve the robotization of such procedures, since completely advanced and marked conveyance records, for example, ‘bills of replenishing’, would exist on it. The prior the receipt is affirmed, the more drawn out the time interim in which financing is conceivable.

  • Effective Cash Settlement:

An intriguing element is an open door offered by keen contracts to make a one-layer receipt installment framework. ‘Savvy solicitations’ could be paid naturally at the development to decrease manual intercession and facilitate the procedures. Such potential outcomes, in any case, as of now exist with present-day ERP frameworks: installments can be made consequently by means of an installment program that recovers every single approved receipt inside a predetermined time period and naturally creates installments. Upgrades offered by DLTs for the bank-driven installment frameworks would permit quicker money repayment and lower exchange charges with advantages for the whole Supply Chain Finance (SCF) people group. Multi-money and worldwide provider base projects would especially profit by lower exchange costs in such a situation.

  • Simple Validity Check of Invoices:

Since the lawful legitimacy of solicitations is a noteworthy issue for SCF programs, blockchain can help in approving solicitations effectively. In common SCF programs, the purchaser has the danger of twofold installment in cases where solicitations were at that point sold to an outsider. Second, as the presence of undisclosed assignments in the bought receivables portfolio can’t be controlled by the financing party, the hazard should be relieved by a solid ‘guarantee to pay’ from the purchaser. By guaranteeing lawful legitimacy through blockchain, the ‘guarantee to pay’ can be expressed less emphatically (what helps the issue of bookkeeping treatment), and the general danger of the structure is decreased, which enables all gatherings of the SCF to program.

  • Switch Securitization:

The utilization of a mutual and believed database layers can likewise bolster the financing procedure, starting with the program setup until the key everyday tasks, which incorporate the receipt endorsement, note’s issuance, and related post-exchange procedures, installments and consistency exercises. This strategy of invert securitization is helpful in comprehending real effectiveness issues in production network financing.

  • Incorporating Money and Product Flows:

Being to a great extent occasion-driven, store network account could unequivocally profit by an innovation having the ability to trigger focuses to enter occasions in the production network. This offers the likelihood to follow the item along with the store network through permanent, carefully designed and continuous information offered by a Blockchain arrangement. This likewise gives more noteworthy trust and accessibility to information purchasers and produce legitimate records for the execution of keen contracts and computerization in the formation of exchange archives.

Henceforth, it could be seen that blockchain offers extensive chances to robotize and boost a trust-based store network financing and could go far in radicalizing the manner in which supply financing chains work. The above circumstances could be misused in conveying a clever store network framework and fund.

How can blockchain technology’s application (rather than other technology solutions) revolutionize the banking and financial sectors?

Panaesha Capital Pte. LtdThe global financial system is one of the most popular sectors that could be benefited through the application of blockchain technology. Operating on the basis of highly dependent manual networks, the banking and finance sector is prone to errors and frauds that could lead to a crippled money-management system. According to Global Fintech Report 2017, 77% of fintech institutes expect to adopt blockchain technology as part of their production system or process by 2020.

According to a claim by the Harvard Business Review, blockchain technology will do to banks what the internet did to media. When it comes to banks and financial organizations of this day, blockchain technology has the potential to solve a lot of problems. Blockchain technology possesses all the attractive characteristics needed by a reliable technology involving money matters. It is safe, secure, decentralized, transparent as well as relatively cheaper.

Blockchain technology provides a very high level of safety and security when it comes to exchanging data, information, and money. It also allows users to take advantage of the transparent network infrastructure along with low operational costs with the aid of decentralization. These characteristics make blockchain technology reliable, promising and in-demand solution for the banking and finance industry.


Applications of Blockchain Technology


Fraud Reduction


A centralized database system is vulnerable and highly prone to cyber attacks as the single point of failure, such systems can be exploited by hackers. Once a hacker gets access to such a system, it is a child’s play for him/her to take the money. This leads to the need for more secure systems that are strong enough to avoid such attacks.

Enter blockchain technology, a secure, non-corruptible technology operating on a distributed database system. Since blockchain technology is distributed, there is no chance of a single point of failure. Each transaction is stored in the form of a block with a cryptographic mechanism which is extremely difficult to corrupt.

Know Your Customer (KYC)


According to a Thomson Reuters Survey, the overall estimated expenditure of AML and KYC processes ranges from $60 million to $500 million yearly. These customers due diligence regulations are performed in order to reduce the money laundering as well as terrorist activities.

With the adoption of blockchain technology, the duplication of efforts would be eliminated. Moreover, all the updates of clients’ will be to all financial institutions in near real-time. This would result in the reduction of administrative efforts as well as costs for compliance departments.

Smart Assets

A smart asset tracking system for the banks and financial institutes competing in the current times holds a lot of scope in the competition. A bank with a rich data set can turn this data into valuable information for its clients with the aid of blockchain technology.

Smart Contracts


A smart contract is a self-executable piece of code that runs when certain conditions written on it are completed. It is helpful in increasing the speed and simplifying complex processes. Smart contracts will also ensure the transfer of accurate information as the transaction will be approved only if all the written conditions of the code are met. Moreover, as these terms are visible to all the parties involved in the transactions, the chances of error at the time of execution are dropped drastically.

Trade finance


Trade finance is considered one of the most useful applications of blockchain technology in the banking sector. All the involved parties such as a complex transaction can be on-boarded on a blockchain network and the information can be shared by exporters, importers, and banks on one common distributed ledger. Once certain specified conditions of the deal are met, the smart contracts will automatically execute themselves and the respective parties can view all the actions performed.

According to sources, an Israel-based start-up along with Barclays have successfully executed a trade transaction that would normally take 7 to 10 days in just 4 hours using blockchain technology. When compared to the existing infrastructure, the use of blockchain technology can reduce costs dramatically relating to licensing, ticketing as well as other overhead charges.

Conclusion

Despite the strict jurisdictions around the banking sector, the financial institutions have started to realise the potential of blockchain technology seeing the popularity of cryptocurrencies in the current markets. The big giants in the banking sector have started conducting the tests for finding out the possible use cases of this decentralized technology for their business processes.

Moreover, some of the organizations are also investing heavily in such researches and tests conducted by startups to develop blockchain technology-based solutions. With blockchain technology entering the current scenario, a lot of problems could be solved while making the system more transparent, easy to access and reliable.

Panaesha Capital, incorporated in 7 countries and is expanding to another 20 countries, brings you the latest blockchain technology-based innovations.