The fintech industry is expected to grow to new levels over the coming years. New research by Cambridge University indicates that the workforce in this industry will also grow significantly.
That is a bit of a surprise to some. The use of innovative technologies would seemingly cut jobs, yet it can easily create many more.
The Future of Fintech
A lot of innovative technologies have come to light in recent years. Some are a valuable ally, whereas others may take jobs away from humans. Especially artificial intelligence is being watched like a hawk. It is the type of technology that lets non-humans do the tasks of humans, but only more efficiently.
Cambridge University acknowledges these concerns. Together with the WEF, they found that AI may serve many different use cases. It is not an instrument for blank application across the fintech industry.Instead, it needs to be used as a Swiss pocket knife capable of helping wherever necessary.
Because of the potential of artificial intelligence, new services and products will be developed over time. Those will create more jobs for humans. In the fintech sector, cooperation with AI will become crucial. Despite the appeal, AI will not solve all problems automatically. Some oversight will always be necessary.
Opinions on Artificial Intelligence Remain Divided
In the research report, nearly 80% of respondents seem intent on using artificial intelligence. In fact, they expect it to drive business in the fintech industry over the coming years. That is a prominent outlook, but it also highlights the diversified use cases for this technology.
There appears to be somewhat of a divide in terms of applying artificial intelligence. Some see it as a way to automate decisions. The various robo-advisors, for example, can benefit tremendously from advancements in the AI industry.
For others, this technology can improve already existing products. By exploring this option, a lot of fintechs have been able to note revenue growth. Modernizing existing products and services can help attract a new crowd.
The Job Conundrum
Even in the fintech industry, the topic of “jobs” remains controversial. Applying artificial intelligence to products and services is a double-edged sword. While it can improve and streamline existing solutions, it may also impact the workforce accordingly.
Newcomers in the space expect AI to replace up to 9% of jobs in the fintech sector. However, established companies see a much brighter future. They expect their workforce to increase by as much as 19%. A somewhat surprising outlook, but the optimism appears warranted.
New technologies will always force a restructuring of sorts. Over time, they will lead to more jobs and new roles being created. It is still early to draw any real conclusions as to what may happen exactly.