The Rise of Fintech
How Universities Can Prepare Students for Fintech Careers
Jennifer Lerner, Senior Director, Professional and Adult Education Forum
Financial technology, or fintech, is disrupting and democratizing the financial industry. Both traditional financial institutions and start-ups are hungry for talent. Fintech job postings have grown 3.5 times faster than the broader U.S. job market has grown (7% growth vs. 2% growth across 2021).
Employers want more technical experts for coding and analytical roles. They also need financial specialists and talent that sit uniquely at the intersection of technical and financial expertise. And higher education institutions must play a role in preparing students for these high-paying fintech positions.
This study explores fintech roles, skills, and opportunities for higher education institutions to align programs to fintech market demand. Download the study as a PDF, or explore the highlights below.
Fintech is disrupting and transforming financial services across the globe
Established financial institutions as well as start-ups are using machine learning, data analytics, and digital banking tools to make faster and more accurate predictions of financial risks. These tools provide investors with better data and give individuals access to personalized guidance that was once available only to those with greater resources.
This expansion of financial services has created more competition for customers, resulting in better terms and ultimately more access.
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What is fintech?
Fintech job growth is strong but regionalized
As a growing industry, fintech holds significant job potential. Much of the domestic job opportunity in fintech lives on the coasts: New York City’s traditional financial hub and the start-up hubs in San Francisco and San Jose. However, as fintech becomes more ubiquitous, fintech jobs show up in other regions as well. Dallas, Denver, Chicago, and Atlanta were among the top ten cities for fintech job listings in 2021.
Fintech vs. U.S. national job growth from October 2020 to September 2021
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7%
average monthly fintech job growth
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2%
average monthly national job growth
Fintech jobs meld traditional business and finance functions with technology
Fintech jobs fall into two main categories: jobs in the traditional financial and banking sector (e.g., big banks such as Merrill Lynch and JP Morgan) and those at start-up companies. In absolute terms, the traditional financial sector is larger. But fintech start-up jobs are growing at a faster pace. This amounts to strong job opportunities across the board.
Because fintech is the intersection of finance and technology, jobs in the field land somewhere on the spectrum between the two. Notably, fintech roles do not explicitly list “fintech” in the name or responsibilities. Instead, job postings combine the industries in the description and requirements.
Fintech program design in higher education is still in flux
Because the field is relatively nascent, fintech programs in higher education vary in curricular composition. Most programs combine finance, business, and technology courses. But the balance of these elements varies significantly.
Given this, institutions creating or adapting programs to align to fintech jobs can focus on strengths rather than modeling on existing programs. Similarly, there is no consensus on how to label fintech programs. Schools have the option to offer programs in existing fields such as financial engineering or use the term “fintech” (or update existing programs to include this term).
Shorter-form credentials hold revenue potential but must compete with alternative providers
While master’s programs hold the greatest potential for higher education, continuing education is a dynamic opportunity for institutions to enter fintech. The opportunities take two main forms:
Boot camps
- Likely to appeal to early-career professionals
- Ongoing opportunity as field continues to evolve
Executive education programs
- Can bring senior leaders up to speed
- Short-lived opportunity as workforce catches up on fintech and execs retire
If offering a program that might be in direct competition with low-cost alternatives from providers like Coursera, focus marketing on the unique value of taking the credential in a higher educational context.
Undergraduate fintech degrees are growing in number—though job demand is low
Undergraduate fintech degree programs are even fewer in number than master’s degrees, though the programs largely map to the same spectrum.
Entry-level fintech jobs tend to require more technical skills, so bachelor’s programs designed to prepare students for fintech roles should weigh technical preparation more heavily. These roles do not require a particular bachelor’s degree, however, and institutions can incorporate content into existing degrees or launch dedicated fintech offerings.
Regardless of program format, be thoughtful about program design and marketing
Institutions have many paths forward to launch a fintech program. Here are three principles to keep in mind when designing those programs:
- Experiential learning opportunities are critical to keep up with a rapidly evolving field—but also require thoughtful structuring to ensure equitable access and exposure to diverse perspectives.
- Market your institution’s academic and career services and local employer partnerships to compete with alternative providers (while still being as fast and low-cost as possible).
- More technical (e.g., mathematical or finance-centric) programs often have more prerequisites for admission—but those prereqs may limit access and constrain program size.
Fintech opportunity diagnostic
Delivering high-quality, in-demand academic programming in fintech is a balancing act between university capabilities and labor market demand. To help partners navigate the program development-refinement question, EAB created a comprehensive diagnostic.
This resource requires EAB partnership access to view.
Access the research report
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