Affected by the digital revolution, the world of finance has been profoundly affected over the past twenty years and changing faster than ever. Reducing storage costs and the explosion of computing power have made financial applications possible a decade ago, and people have only dreamed of them. In this fast and complex environment, banks need to employ young talents with skills that were not necessarily associated with financing in the past. Choosing to prepare for some of tomorrow's key positions means that you will be searched for by the best banks as you enter the professional world at the end of your studies.
Here are 3 career paths that will be the key to hiring with tomorrow's banks:
Blockchain is the technology introduced by Bitcoin. It was originally designed as a decentralized digital coin. The key to blockchain technology is that it enables reliable, valuable transactions between multiple parties without the need for central authority. The potential applications of the banking industry are still uncertain. We can see that it replaces the current system for transferring funds between domestic and global banking entities. The strengths of such a system can also be used to spread the details of each economic agent among financial institutions. This will allow the bank to know very quickly whether a particular customer can be trusted, and thus reduce compliance significantly to costs.
One thing is sure, but this technology will have a major impact on the industry in the coming decades. Most major banks have invested in research into this technology. "I don't know what will work," said Simon McNamara of RBS. "What I can assure is is that we will see blockchain and peer-to-peer solutions emerging in our industry and we want to be close to this development." Blockchain specialists will have a strong interest in both computer science and economics.
This may be the most obvious. Banks are already recruiting a lot of data scientists, giving them some of the best paid positions in the industry. However, this is only the beginning of the revolution. As algorithms evolve more and more, the mission of computers will slowly move from implementing a strategy to finding strategies by browsing a vast amount of data.
Data scientists will design systems that explore huge databases containing all kinds of data; historical prices, news and even personal information about clients. All of this will reveal invisible and unknown relationships between things. Then you will be able to implement a strategy based on these new results.
Ultimately, banks will have computers that will learn on their own how to make money from a huge collection of diverse data. The focus of the competition will be to get the best data and enter it into these computers. This will be the machine learning app for funding.
The data scientist specializes in stats that also have an interest in computer science.
More experienced bankers will tell you that short-term price movements are partly explained by human psychology. In order to improve the decision-making process, banks will have to take these human factors into account. Technical analysis can be considered as an introduction to this discipline, and its aim is to capture some human behaviors by discovering the recurring pattern in historical prices.
However, recently, academics have taken a more scientific approach to these questions and increased interest among bankers.
In the near future, banks are likely to seek people who can apply psychology and sociology, among other methods, to financial markets. Such "financial psychologists" will need to be specialized in humanities and economics.