Fintech is attracting attention not only around the world but also in Japan. In this article, G Talent, a recruitment agency specialized in foreign IT engineers, summarized four advanced IT technologies in Fintech and each job demand in Japan.
Fintech Four Key Advanced Technologies in Fintech
In this article, we would like to focus on the following four important advanced IT technologies in Fintech.
- AI/Big Data
Now, we are going to explain each technology one by one, taking into account the current demand for recruitment.
AI / Big Data
There are many cases in which big data technology is applied to credit examinations of credit cards and loans, using a large amount of data such as stock price information, economic indexes, and personal financial information.
The cost of data analysis is drastically reduced due to cloud servers and distributed processing systems that can process big data, and large amounts of data are collected and processed by using text mining technology and natural language processing technology for data collection and conversion.
AI performance has dramatically improved due to deep learning technology developed around 2010. AI technology has begun to be used in various areas of the financial industry, such as automation of counter operations, automatically analyze financial indicators, and buy and sell stocks using big data.
Along with that, it is said that the work that people were doing in banks will be replaced by AI and that there is going to be a huge lay off in each bank in the future. Also, it is said that banks that cannot be transformed into IT companies will be eliminated.
Job Demand for AI / Big Data
In fact, the recruitment of data engineers and data scientists are increasing at major insurance companies and credit card companies, and by effectively utilizing big data, each company is working to improve operational efficiency and create new services.
Also, each bank is focusing on hiring IT engineers, every financial company is looking to become a fintech company.
However, there is a shortage of human resources related to big data and AI in Japan. When working in Japan, the language of Japanese is often required, but some Japanese insurance companies do not require it, so there are many fields where foreign IT engineers can play an active role.
It would be no exaggeration to say that the first word that comes to mind as fintech technology is “blockchain.” In more technical terms, it is also called “distributed ledger technology”. It is not a centralized type of management, but a network system made to distribute data to computers all over the world and reduce the risk of destruction and tampering.
Normally, if you deposit money in a bank, transaction records are maintained by the bank’s central server. But with blockchain technology, the transaction information can be distributed and stored on the network without the needing for central management such as financial institutions. In addition, the encryption technology allows users to refer to only the items that are permitted, and the risk of leakage of personal information is extremely low.
All records are stored on a computer network, allowing anyone to scrutinize and audit and prevent counterfeiting or double payments by exposing them to the eyes of the general public.
Bitcoin and other virtual currencies are typical examples of blockchain technology. Speaking of blockchain, there are many people who think of virtual currency, but the reason why blockchain is getting so much attention is that it can be applied to a wide range of areas apart from the virtual currency, and it is expected to revolutionize the business so far.
For example, it is expected that the blockchain will be utilized in the basic operations necessary for business, such as ordinary commercial transactions, electronic voting, and the conclusion of contracts.
Job Demand for Blockchain Technology
Job offers to require blockchain technology continue increasing in Japan. Not only in cryptocurrency companies but also in financial industries such as banks and startups that provide blockchain solutions are in very high demand. In addition, Japan has few engineers with blockchain technology knowledge, and this is an area where many foreign engineers are active.
Currently, there are few cases where IoT has been introduced in the financial field. However, recently, with the introduction of IoT technology in automobiles, there is a possibility that data on automobile driving methods and automobile insurance may be linked, but the state of car insurance when automatic driving progressed is calling for a debate. Therefore, IoT technology in the financial field is gradually gaining attention.
In addition, the use of IoT technology in the medical field may have a major impact on medical insurance. Recently, with the spread of wearable devices, IoT technology has been applied to the payment support of Apple Watch, etc., and there is a possibility that IoT technology in the financial field will grow in the future.
Job Demand for IoT Technology
It is said that the market size of IoT technology will exceed 36 trillion yen in 2020 (Gartner’s estimate), and also, it’s said that the demand for IoT technology is a field with extremely high growth potential.
The demand for IoT engineers is still low in existing financial companies and fintech companies, but in the manufacturing industry that produces IoT-equipped devices (cars, wearable devices, etc.) linked to financial companies the demand for IoT engineers is in a higher situation.
When using online services such as banks and securities, personal authentication is always the first key. In July 2012, the FIDO (Fast IDentity Online) Alliance was established by 6 companies such as Pay Pal and Lenovo aiming to standardize global authentication centered on online authentication including biometrics, and its scale still increasing at present. Board members, which are major companies, include global financial giants such as Visa, MasterCard, and Bank of America, as well as global companies such as Microsoft, Google, and NTT DoCoMo.
Fingerprints and vein authentication have also started to be used at some ATMs at Japanese banks.
Recently, not only image data but also authentication by physical movement such as keyboard typing method has been developed, demonstrating that it can be said the application of new technology is a remarkable field.
Job Demand for Biometrics Technology
Regarding biometric authentication technology, the application is still limited to personal authentication, so demand can be said to be still far ahead of AI, big data, and blockchain technology.
In addition to the four technologies introduced this time, various new advanced IT technologies will be used in the fintech field. Also, not only advanced IT technology, modern frameworks have become necessary to improve usability for consumers. G Talent, a recruitment agency specialized in foreign IT engineers, will keep an eye on FinTech trends and keep updating our readers about relevant technology.