To deal with ever-changing customer demands, finance companies are always on the lookout for employees who are willing to grow. Scalability is going to be the most important parameter to meet in the future of finance.

Scalability is an important factor that drives all financial organisations today. It stems directly from the sector’s immense workload, and the knack of minimising human interactions, slowly, but surely. The fintech sector’s primary goal is to ensure that these two tenets remain inversely proportional-more work done by fewer people. Professionals and students willing to join the finance workforce need to be capable of growth in all horizons to be noticed by big companies.

What is Scalability?

Scalability is the ability shown by any system to handle growing workload along with increasing its knowledge and resources. In other words, it is the quality to improve on productivity, and innovate simultaneously. There are two kinds of scalability-vertical and horizontal. Vertical stability is the more dynamic kind, where every component in the system increases its productivity. They work independently and can be replaced with better versions where it is needed for faster results. Horizontal scalability, on the other hand, deals with a system that has more components that are structurally smaller. So, the system sometimes upgrades with new processes, structures, and servers to grow. This kind of scalability depends on the whole system.

Financial companies depend a lot on services that change rapidly to become more effective. The nature of solutions provided by them changes almost daily because it depends on customer feedback. It is an industry that depends on the practice of pruning the negatives, wherever possible, to increase visibility and desirability among clients. Fintech companies and start-ups are, thus, always looking for people who can change with the need of the hour. As a professional, one cannot be stationary and deep-rooted into their learning, but be willing to grow and acquire knowledge that will make them relevant in the sector.

A report found 39 per cent of banks believing that a digital transformation brings high impact to their service delivery. This means, a chunk of the sector still believes in human talent to scale upwards. It also comes as no surprise that 51 per cent banks believe that they are still behind in terms of innovation.

Areas Where Scalability Rules

Gone are the days when a degree in finance would secure you a stable job where learning new things wasn’t mandatory. Today, not only does one need to acquire new skills, but also hone and polish them as the system upgrades. There are new angles that the finance sector comes up with every day, and a candidate needs to be prepared with the list of pros and cons, even before a service is rolled out. Staying informed and aware has become a must. So, professionals looking for a job in the fintech and finance sector today, need to be scalable in order to be picked up by the big names in the sector.

Research has found that 74 per cent of startups don't succeed because of premature scaling. It is crucial for them to think ahead and plan for success-an area where scalability is important. Financial organisations need individuals who are scalable, just like its products, because this aligns with their vision. There are multiple reasons why they need to scale. Let us look at some of them:

Document Management: As easy as it sounds, managing the piles of documents that the finance sector brings in every day is a problem, if you are still stuck in the pen-and-paper era. Every aspect of the world is going digital, and cloud-based technology is not a new phenomenon. Huge piles of files need to be processed and stored, and shared when the situation demands. Thus, the finance sector needs professionals who can help them with cloud-based technology. The industry is using management information systems that are robust, and can provide speed, flexibility, and a user-friendly interface. These can be secured, customised, and scaled too. Every company has its own kind of requirement, and the technology needs to be customised accordingly. Most banks and insurance firms partner with software developers to construct their corporate products. As a developer, if you are only offering off-the-shelf solutions, your future is going to be bleak. You will constantly need to innovate and keep yourself updated with the changing patterns in technology to stay ahead in the race-in short, be scalable.

Mammoth Client Base: Look at financial organisations like HDFC and Mahindra, with the amount of services that they provide, starting from insurance to wealth management plans, it goes without saying that their client base is huge. This comes with its own set of problems. In any case, the needs of a client keep changing, so when it comes to such a huge clientele, the firms need a system that is scalable, and can manage communication, different services, and every process in the organisation. With the growing parameters, the idea of scalability becomes important, because financial companies are always looking to upgrade and better their software to deal with the increasing workload more efficiently.

Varying Range of Products: Competition is the bottom line in the financial sector, as all companies offer almost similar services. To keep themselves relevant and lucrative when compared to its competitor, a financial service provider will innovate and go to great lengths and invest billions on disruptive products. Managing this requires an advanced level of organisation and technology. Scalability is the first function that service providers look at. Processing Big Data and managing resources correctly is the USP of this sector. Financial firms need partners who will analyse their business thoroughly and come up with a scalable technological option to suit their needs.

Managing Manpower: Since human brains are ultimately the driving force behind the finance sector, organisations look at human resources seriously to manage their huge employee base effectively. Bank HRs provide services such as training, planning, performance management, and acquisitions. To manage the growing base and branches, a company needs scalable technology and individuals willing to adapt to multiple roles.

Multitasking: A number of technological processes and human tasks working hand in hand keep the cogs of the financial sector well oiled. The processes are complex and require a fintech system that is extremely scalable and powerful. Companies, thus, need scalable people when developing their applications, software, and other solutions.

How Can You be Scalable?

Artificial intelligence experts, data analysts, and blockchain proponents are going to be the most successful people in this industry, simply because of the scope of scalability in these areas. Developers in these fields provide technological solutions to handle the work pressure, product innovation, and people management. AI-enabled applications work to make most processes automatic, which means human tasks come down, yet the industry grows (as is the very definition of scalability). These functions can significantly cut costs for companies, and help with fast payments, chatbots, personalisation, fraud detection, digital and voice assistants.

The author is Chief Business Officer, Manipal Global Academy of BFSI

DISCLAIMER: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.