How Fintech becomes a big part of your CFA Exams
CFA as a global credential helps you demonstrate expertise in financial reporting, investment, portfolio management and economic analysis. As CFA is a three-level high-stake exam while new technologies like AI, ML, blockchain and data science influence trading and investment decisions majorly, top CFA institutes in India felt the urge to incorporate finance technology as part of the CFA curriculum. Through this inclusion, not just budding CFAs but also generalists are provided with an understanding of how technology is affecting financial analysts and learn the application of new technologies into the financial processes.
Let us dive into some critical aspects to know how Fintech matters to CFAs.
Fintech as a catch-term has changed the traditional landscape of investment through the intrusion of digital capabilities like AI, ML and Algorithms to help finance professionals explore new investment opportunities, optimize portfolios and avert risks. The recent inclusion of Big Data, AI and ML has also led finance leaders to innovate finance products and services. Moreover, the technological applications in the finance process has enabled generate faster, smarter and actionable results and insights for accounting and finance professionals like CFAs to advise the C-suite leaders to make informed decisions.
CFA as financial practitioners must position themselves for digital transformation as the new finance landscape needs more automation and digital tools, especially in the asset management industry. In the light of this, many CFA training institutes started incorporating fintech topics and concepts trending in the market like Big Data Analytics, Artificial Intelligence, Machine Learning and Algorithm Trading.
At Level I of your CFA, you would be introduced to Big Data, AI and ML. Since the investment space revolves around financial data, it becomes stressing on investment professionals to evaluate and analyze big data patterns which were earlier generated by individuals, lengthy business processes and sensors. But with the intrusion of Big Data, AI and ML, huge datasets are sourced, stored and analyzed more efficiently than ever to help make informed investment decisions and improve forecasting and risk management strategies. By now, you would understand how the role of financial analysts and the investment methods have taken a shift with technological integration.
At level II, you would be introduced to how automations have impacted the investment industry and the deployment of robo advisors have helped investment professionals make sophisticated judgements and forecasting. This automation and software platforms will give you a better understanding of how investment professionals recently have broadened retail investments through leveraging services such as asset allocation, portfolio optimization, tax strategies, rebalancing and others.
Level III under the CFA syllabus covers topics connected with capital markets that involve the application of blockchain and Distributed Ledger Technology (DLT) for improved and secured asset management. A compelling advantage you may get is hands-on experience in tokenization and cryptocurrency applications, smart contracts, post-trading compliance techniques and identity verification. Along with this, the algorithm trading section will further equip you to know when, where and how to trade based on market conditions.
Along with the inclusion of fintech concepts into the CFA syllabus, it is more important for CFA aspirants must make a wise move of subscribing to the India’s best Original CFA Study Package launched by Miles-Schweser to advance your knowledge with upending and latest information on the varied topics on CFA course and become a future-ready finance professional!!
