Although a relatively new concept, open banking’s influence on jobs in fintech has been noticeable throughout the industry. It’s changed how existing jobs operate and generated several new fintech jobs.
Has the route to having a successful fintech career changed? In short, yes. Those who wish to be successful in fintech careers must have a blend of financial knowledge and proficiency with cutting-edge technology.
The fintech industry is a competitive market that continues to change at a rapid rate. Our guide explores the current roles and the skills needed for fintech talents to flourish.
What Skills are Needed for Open Banking?
The emergence of open banking has reshaped fintech jobs and the industry's future. Fintech professionals now require a diverse skill set that combines in-depth financial expertise with advanced technological proficiency.
Core competencies relating to finance will encompass banking operations, financial products, and regulatory and compliance frameworks. Open banking means those working in fintech jobs must be equipped with risk management; this includes detecting and mitigating financial and operational risks. In addition to fundamental financial skills, fintech talents will need the following:
- Open Banking API Development & Integration: Open banking APIs enable data sharing, pave the way for new services, improve customer experience, and enhance security. Ultimately, open banking APIs are pivotal to open banking systems, and professionals must be proficient in their development and integration.
- Data Analytics: Large volumes of data form the foundation of open banking; therefore, fintech talents must be adept at analysing and interpreting data. Knowledge of data mining, machine learning, and predictive modelling is essential for gaining insights from customer data.
- Cybersecurity: Per day, hackers attack 26,000 times. Therefore, globally, it’s expected that the number of cyber experts needed will reach four million. In Europe alone, it’s estimated that there is a shortage of 883,000 cybersecurity professionals, with the global need for cyber experts expected to reach four million.
- Ability to Adapt and Innovate: Where fintech recruitment is concerned, professionals who can develop ingenious financial products are highly sought after. As open banking continues to evolve, a desire to learn and continually hone one's skills is desirable so that fintech companies can stay abreast of the latest industry trends.
Data Security Experts are Integral
Financial data is highly personal, and its owners demand it be protected robustly. Data security experts are entrusted with this responsibility. In Europe, open banking is governed by regulations like PSD2, which sanctions secure API usage and customer authentication. Data security experts should always comply with these regulations, implementing security protocols where necessary. Here are some key areas that a data security expert would need to manage:
Open Banking API Vulnerabilities
Whilst open banking has many benefits, relying on an open banking API acting as a bridge between banks and open banking providers presents considerable risks. Data, and specifically data sharing, are the cornerstone of open banking. This renders open banking susceptible to data breaches; therefore, stringent measures and skilled professionals must be in place to safeguard against this.
Open Banking API Endpoints
Open banking APIs have several endpoints, each providing an opportunity for malicious entities to capitalise on any possible lapses in security. Here are some examples:
- Bot Attacks: Hackers can deploy automated bots to attack opening bank API endpoints that might be exposed. Hackers’ methods include DDoS attacks, manipulating HTTP calls, and sophisticated malware.
- Shadow and Zombie APIs: Undocumented or forgotten open banking APIs can be running without a company's knowledge, acting as a breaching point for attackers.
Authentication Risks
The implementation of authentication protocols serves as a barrier to would-be hackers. However, data security experts still need to be diligent for the following reasons:
- Weak Access Controls: When not used correctly, authentication and authorisation measures can be easily bypassed, allowing hackers to access financial data.
- Identity Theft: Poor verification processes can compromise user data and financial information.
Data Exposure
Exchanging financial data is the fabric of open banking. Naturally, cybercriminals view this as a target to attack. If data security measures don’t have the appropriate measures in place, open banking APIs can be open to:
- Data Breaches: Hackers can get access to and seize exposed financial information.
- Inadequate Encryption: Data strategy experts must ensure data is encrypted, or it’s at risk of interception.
Open Banking API Developers
As APIs build and maintain the essential infrastructure needed for data transfer between banks and open banking providers, open banking API development is one of the most crucial jobs in fintech. Their key responsibilities include:
- Developing and Integrating APIs: They will collaborate with stakeholders to better understand the needs of the bank and third-party users. They will also utilise the latest fintech software development to enhance APIs further.
- Compliance and Standardisation: In the UK, APIs follow the standards set by the OBIE; similarly, in Europe, APIs must meet PSD2 requirements.
- Optimising Performance: Open Banking API developers ensure API metrics are met to maintain service quality.
Securing Sensitive Financial Information
The previous responsibilities are valuable, but consumers want assurances that their financial data is substantially protected. Open banking API developers have several methods to galvanise their security measures. Here are some examples:
Authentication and Authorisation
Open banking API developers can incorporate mechanisms to defend against malicious breaches intended to appropriate sensitive data. Protocols at their disposal could be:
- Multi-Factor Authentication (MFA): An additional layer of security on top of a password.
- eIDAS Certificates: These certificates are in place in the EU to identify and authorise API connections from third-party providers to banks.
- OpenID Connect and OAuth 2.0: Protocols that users must satisfy to access their financial data.
Encryption and Data Protection
Encryption is a valuable measure that open banking API developers can implement to protect sensitive information such as user credentials, personal details, payment information, and business data. Whether it’s at rest or in transit, data has to be safeguarded. Here are some tools and methods that can be used:
- TLS Encryption: All API communications in transit must use TLS 1.2 or higher to encrypt data.
- Data Minimisation: Open banking APIs should only expose the minimum amount of data necessary.
- Tokenisation: Some sensitive data, like account numbers, can be substituted for tokens to reduce actual values being exposed.
UI/UX Designers Deliver Functionality
Trust is integral to open banking, but it’s also important to deliver a seamless user experience. Sharing sensitive information might cause users to be apprehensive. A UI/UX designer’s role is to create open banking APIs that are easy to use and inspire confidence and trust. Trust can be developed in the following ways:
- Intuitive designs that explain data sharing permissions in a clear, digestible way.
- Ensure that authentication and authorisation stages are fluid and build confidence.
- Creating visual cues and messaging that emphasise security and privacy can enhance a sense of trust.
Making Data Digestible
Data can appear daunting on the surface. Open banking APIs offer an opportunity to present complex data in a user-friendly way. UI/UX designers are responsible for transforming vast amounts of quantifiable data into visual representations that are easy to interpret. There are a range of tools to assist with this:
- Datawrapper: A popular tool in fintech jobs as it’s simple to use and offers a range of visualisation types like maps, charts and tables. There’s also a feature for live data updates without the need for republishing. Fintech talents can use the Datawrapper Academy tool to become familiar with it.
- Google Charts: Provides a multitude of chart types that are interactive, meaning users can zoom in on data or hover over points of interest. UI/UX designers can customise charts with colours, fonts and legends to build a strong brand image.
Ultimately, simplifying financial data whilst giving customers a platform that’s easy to navigate and aesthetically pleasing will help garner trust and build brand loyalty.
Ensuring Open Banking is Accessible and Inclusive
For many consumers, open banking is a relatively new concept. UI/UX developers must create open banking APIs that do not alienate potential customers. Open banking providers and many fintech jobs will be keen to expand their use base. APIs made with accessibility in mind are well-placed to achieve this. Here’s how they could do this:
- In many countries, it is required by law to make digital services accessible. Beyond legalities, it’s also ethical. UI/UX developers must create designs that comply with accessibility standards.
- It’s imperative that open banking APIs can be used across mobile phones, tablets, and desktops. Additionally, APIs must be responsive to fit a range of screen sizes.
- Incorporating accessibility features such as clear navigation, text that’s easy to read, and UI/UX elements that benefit everyone - not just those with disabilities.
- Accommodate for varying levels of financial comprehension and ensure any jargon is avoided. The UI must concentrate on functions and not burden users with excessive features.
Fintech Regulatory Specialists
Fintech companies need fintech regulatory specialists for a range of reasons, most notably to ensure compliance with relevant laws, regulations and the latest industry standards.
Regulatory Compliance
As featured throughout this guide, the basis of open banking is formed upon the sharing of sensitive data. With that comes a series of best practices that must be adhered to, as well as a number of key responsibilities:
- Be it local or international, fintech regulatory specialists must possess a deep understanding of financial regulations concerning the fintech industry.
- A fintech company’s regulatory specialist must ensure its policies and practices meet the latest standards.
- Completing regular risk assessments allows for possible problems to be identified and rectified.
- The fintech industry constantly evolves. Developing new policies that are tailored to the industry is essential.
Monitoring and Reporting
Ensuring compliance and customer protection is a critical cog of open banking, and monitoring and reporting are means to fulfil this. As discussed, the fintech industry is fast-paced, and there’s a need to be adaptable; monitoring patterns mitigate possible risks. Fintech regulatory specialists will be tasked with:
- Deploying systems that monitor customers’ transactions to ensure the company isn’t used for illicit means.
- Providing management and regulatory bodies with reports that outline the company’s commitment to adhering to relevant laws and regulations.
- Detecting dubious transitions that might require filing reports with the relevant authorities.
Open Banking Product Managers
Tasked with overseeing several jobs in fintech, including some mentioned in this guide, are open banking product managers. They’re important as they’re a driving force for developing financial products and services that improve the efficacy of open banking APIs. Let’s explore their main responsibilities:
- API Management: Open banking product managers collaborate with open banking API developers and UI/UX designers to ensure the advancement and maintenance of APIs. They must ensure APIs are secure, scalable, and compliant.
- Strategy and Innovation: Identifying market opportunities and addressing customer needs is vital to continually improving products and services. It also opens an opportunity for innovative ideas that will separate their business from competitors.
- Building Effective Partnerships: Creating a network with fintech companies, open banking providers, and developers is essential for a company’s prosperity.
- Sustaining Security: They must confer with fintech regulatory specialists and data security experts to ensure their company is aligned with current regulations, laws and practices.
Final Word on How Open Banking is Disrupting Jobs in Fintech
From reshaping current jobs in fintech to generating new fintech careers, open banking is transforming the industry. As the space continues to shift, so too do the skills required for success. Fintech talents must have a foundational knowledge of finance that’s complemented with expertise in the latest technologies and tools.
Data security experts, open banking API developers, UI/UX designers, fintech regulatory specialists, and open banking product managers must pool together to achieve their company’s shared goals. Whilst many targets will be subjective, building trust and providing a user-centric open banking API is paramount.
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Fintech jobs have evolved due to open banking becoming increasingly prominent. It’s revitalised the industry and brought a range of new fintech careers. W Talent’s expert team sources high-quality candidates using a tailored approach that suits your needs and keeps you ahead of the curve in this fast-paced and innovative sector
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