The Rise Of Dedicated Blockchain Teams In Financial Services
Blockchain is a hot topic in financial services and the market is increasingly assembling dedicated blockchain teams to undertake internal or joint pilot programs. Australian-based financial services professionals with a strong technical background and interests in blockchain are definitely going to be well-placed with next career steps.
What is blockchain and why the hype in financial services?
Blockchain technology in plain terms is a ‘shared’ ledger system (also called a distributed ledger). Blockchain is famous for the open technology that processes Bitcoin transactions. The ledger comprises blocks of data which are timestamped, hashed and linked to form integrated chains. A distributed ledger is a shared database of transactions that is distributed across many different locations, institutions, geographies and so on. Each participant in the network has their own copy of the ledger and all changes to the ledger are reflected in near real time.
Financial services organisations are interested in the security, accuracy and economy of blockchain technology. These attributes are especially alluring for organisations that put up with legacy systems and cumbersome silos of customer and transactional data.
Blockchain career openings in financial services
Blockchain requires a lot of the same skills needed for building more traditional technology, but anyone who has previously worked on distributed systems will be at an advantage. Those who are interested enough to understand blockchain will be rewarded for their curiosity as the ability to adapt to new technologies is valued highly in financial services.
Of course, blockchain is just one piece of the puzzle. Input from networking or security specialists will be required as will the minds of business and process analysts. The big consulting firms have established blockchain teams and as with any new technology, the market sets a premium for those with knowledge and skill.
Leading superannuation administration provider Pillar have partnered with Ernst and Young to establish blockchain prototypes and proof of concept by the end of 2016. They are working towards publishing a report about blockchain reshaping the superannuation industry and have come up with around 20 blockchain use cases (Financial Standard, April 2016).
Considering blockchain is still fairly niche, getting in touch with the right people can be tough. Sourcing talent generally means attending blockchain meetups and conferences to see who is contributing code to blockchain projects. Nick Giurietto , blockchain advocate and CEO of Australia Digital Currency Commerce Association (ADCCA), kindly helped Kaizen out with a Q and A with his views on career opportunities:
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What employment opportunities do are there now for skilled blockchain developers in financial services?
More and more Australian financial services businesses are launching blockchain based innovations. Not all of these projects and teams are visible to the open market as quite a number of projects are operating in stealth mode. Networking within the developer community is likely to be the best way to identify opportunities.
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Do you see employment opportunities for skilled blockchain developers in financial services?
Blockchain developers along with business and process analysts with the skills to imagine a different business model will see increasing opportunity in financial services.
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Why will blockchain be so big in financial services?
The potential for blockchain innovation to remove significant cost from financial services businesses will drive an initial wave of blockchain investment. Product innovation that will create new customer value propositions will drive a second wave.
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What should professionals do if they are interested in formal training in blockchain?
There are currently few opportunities for formal blockchain training. However, blockchain projects generally require the use of existing coding skills – just with a different architecture.
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Will people with blockchain skills be able to command a premium for their work?
Yes. I expect that business and process analysts able to envisage and specify solutions that take advantage of the unique features of blockchain will command premium rewards for their skills.
If you or your organisation are exploring blockchain technology in financial services, Kaizen is actively having conversations in the market and can assist in bringing the right people together.
Best regards
Matt
ADCCA is Australia’s leading counsel and representation for digital currency businesses with special interest in financial services. The organisation’s founding mandate is intended to act as the essential connection between merchants, industry, governments, regulators, financial institutions and influential policy forums which give direction to this emerging industry at home and abroad.
Kaizen Recruitment specialises financial services recruitment across funds management, wealth management, superannuation, investment consulting and insurance. We are based in Melbourne and Sydney. For assistance or further information please telephone our office at +61 3 9095 7157 or submit an online form.
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