The Certified Fintech Professional

By Dr. Zulk Shamsuddin

A fintech professional is a specialist in financial technology who uses their knowledge to develop new ways to make financial transactions more efficient and secure. They may work in various settings, including banks, accounting firms, IT companies, and consulting firms.
The Certified Fintech Professional ™ (CFP) is a gold-standard certification for individuals with skills and experience in fintech technology, electronic commerce, cyber security, digital payment, project management, and risk and compliance.
It forms the basis of the assessment that applicants must pass to gain the Certified Fintech Professional status and inclusion in the Register of The GAFM Academy of Finance and Management® Directory of Certified Professionals.
Stand out above the rest with the accredited Certified Fintech Professional certification and get noticed by top recruiters.

• Language: English
• Publisher: Lulu.com
• Release date: Apr 4, 2023
• ISBN: 9781312707627

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Copyright © 2020 Zulk Shamsuddin, PhD / GAFM ACADEMY

All rights reserved.

ISBN: 9781312707627

INTRODUCTION

The Certified Fintech Professional ™ (CFP) is a gold-standard certification for individuals with skills and experience in fintech technology, electronic commerce, cyber security, digital payment, project management, and risk and compliance.

It forms the basis of the assessment that applicants must pass to gain the Certified Fintech Professional status and inclusion in the Register of The GAFM Academy of Finance and Management® Directory of Certified Professionals.

Stand out above the rest with the accredited Certified Fintech Professional certification and get noticed by top recruiters.

Benefits of Becoming a Certified Fintech Professional

Fintech Professionals are individuals who implement cybersecurity systems and ensure compliance with the organization’s cybersecurity policies, guidelines, procedures and regulatory requirements. Becoming a certified Fintech professional has its benefits, some of them are:

Global recognition   

Enhanced your CV to stand out in the job market, and get noticed by top recruiters.

Get noticed by top recruiters.

International recognition with the exclusive certification card.

Assurance for clients of high standards and ethical practice.

Use of the post-nominal CFP or Certified Fintech Professional ™

What is Fintech?

Fintech, a combination of the terms financial and technology, refers to businesses that use technology to enhance or automate financial services and processes. The term encompasses a rapidly growing industry that serves the interests of both consumers and businesses in multiple ways. From mobile banking and insurance to cryptocurrency and investment apps, fintech has a seemingly endless array of applications. Fintech refers to the application of software and hardware to financial services and processes, making them faster, easier to use and more secure. The fintech industry includes everything from payment processing solutions to mobile banking apps.

This certification focuses at the following skills and competencies for individuals to be certified as a Certified Fintech Professional.

Fintech Technology

Electronic Commerce

Digital Payment

Cyber Security

Risk and Compliance

Project Management

Application for Certification

https://gafm.com.my/application-for-certification/

Today, the fintech industry is huge. And if recent venture capital investments in fintech startups which reached an all-time high in 2021 can be considered a vote of confidence, the industry will continue to expand for years to come. One driving factor is that many traditional banks are supporters and adopters of newfangled fintech, actively investing in, acquiring or partnering with fintech startups. Those are ways for established banking institutions to give digitally minded customers what they want, while also moving the industry forward and staying relevant.

How Does Fintech Work?

The inner workings of financial technology products and services vary. Some of the newest advancements utilize artificial intelligence, machine learning algorithms, blockchain and data science to do everything from process credit risks to run hedge funds. There’s even an entire subset of regulatory technology dubbed, designed to navigate the complex world of compliance and regulatory issues of industries like you guessed it fintech. As fintech has grown, so have concerns regarding cybersecurity in the fintech industry. The massive growth of fintech companies and marketplaces on a global scale has led to increased exposure of vulnerabilities in fintech infrastructure while making it a target for cybercriminal attacks. Luckily, technology continues to evolve to minimize existing fraud risks and mitigate threats that continue to emerge.

Mobile Banking

Mobile banking is a large part of the fintech industry. In the world of personal finance, consumers have increasingly demanded easy access to their bank accounts, especially on a mobile device. Most major banks now offer some kind of mobile banking feature, especially with the rise of digital-first banks, or neobanks. Neobanks are essentially banks without any physical branch locations, serving customers with checking, savings, payment services and loans on completely mobile and digital infrastructure. Some banks also allow third-party software applications to access a user’s financial information, which is called open banking.

Fintech (financial technology) and the European Union: State of play and outlook | Epthinktank | European Parliament

Cryptocurrency Fintech

Cryptocurrency and Blockchain intersect with fintech in a number of ways. For starters, several crypto trading platforms have emerged in recent years that allow users to trade different kinds of cryptocurrencies and take advantage of decentralized exchanges. And to keep people’s digital currency safe, a number of crypto wallets have sprung up as well. In addition, several fintech companies use blockchain technology for payment processing, money transfer and secure digital identity management. Some examples of cryptocurrency fintech companies include Bitcoin, Ethereum, Polkadot, Cardano, Solana, Tether, and Binance.

Fintech Investment and Savings

Fintech has caused an explosion in the number of investing and savings apps in recent years. More than ever, the barriers to investing are being broken down by companies like Robinhood, Stash and Acorns. While these apps differ in approach, each uses a combination of savings and automated small-dollar investing methods, such as instant round-up deposits on purchases, to introduce consumers to the markets.

Machine Learning and Trading

Being able to predict where markets are headed is the Holy Grail of finance. With billions of dollars to be made, it’s no surprise that machine learning has played an increasingly important role in fintech and in trading specifically. The power of this AI subset in finance lies in its ability to run massive amounts of data through algorithms designed to spot trends and risks, allowing consumers, companies, banks and additional organizations to have a more informed understanding of investment and purchasing risks earlier on in the process.

Payment Fintech

Moving money around is something fintech is very good at. The phrase I’ll GrabPay You, I’ll Venmo you or I’ll CashApp you now a replacement for I’ll pay you later. These are, of course, go-to mobile payment platforms. Payment companies have changed the way we all do business. It’s easier than ever to send money digitally anywhere in the world. In addition to Venmo and Cash App, popular payment companies include Zelle, Paypal, GrabPay, Stripe and Square.

Fintech Lending

Fintech is also overhauling credit by streamlining risk assessment, speeding up approval processes and making access easier. Billions of people around the world can now apply for a loan on their mobile devices, and new data points and risk modeling capabilities are expanding credit to underserved populations. Additionally, consumers can request credit reports multiple times a year without dinging their score, making the entire backend of the lending world more transparent for everyone. Credit companies worth noting include Tala, Petal and Credit Karma.

Insurance Fintech

While insurtech is quickly becoming its own industry, it still falls under the umbrella of fintech. Insurance is a somewhat slow adopter of technology, and many fintech startups are partnering with traditional insurance companies to help automate processes and expand coverage. From mobile car insurance to wearables for health insurance, the industry is staring down tons of innovation. Some insurtech companies to keep an eye on include Lemonade, Kin and Insurify.

What is a Digital Wallet? Digital Wallet VS Mobile Wallets In 2022

Digital Wallets

Digital wallets, like Apple Pay and Google Pay, allows people to store their payment information in a mobile app, and then use that app when it comes time to pay for something. While digital wallets have been around for years, their usage is still on the rise.

Blockchain in Fintech

Blockchain a public ledger capable of recording the ownership, origin and movement of digital assets will continue to impact the financial industry. For starters, the ledger technology and proliferation of smart contracts will greatly help with making the industry more secure and efficient.

What is Fintech compliance?

Fintech compliance is intended to regulate companies providing solutions in the financial industry and protect consumers. The growth of Fintech, partnerships between fintech and legacy financial institutions, and regulation of the financial industry creates protection for consumers and increases competition in the market. However, with advancing technologies and solutions, regulators are scrutinizing banks, credit unions and fintech companies progressively. Regulators face challenges in developing regulations due to the agile development of the fintech industry and on the other hand, startups mostly lack the capacity to comply with regulations. Consumer needs and preferences are a priority for any company in the financial sector seeking to gain market share and grow sustainably. This is why it is important to manage and lower their risk profile by aligning their objectives with regulatory requirements.

Compliance strategies are often tied to budgetary allocation, labor and talent to create scalable and airtight compliance strategies which may be manual or automated. Importantly, hybrid processes balance the human touch and technology such as faster transaction rates to promote seamless customer experience and operational efficiency as well. While Fintech companies may provide similar approaches per sector, they are also different in terms of structure, providing solutions to market and objectives thus the need for a customized approach both in creating and implementing compliance strategies. Some of the recent regulatory measures involving fintech have been in areas such as; Anti-Money laundering, consumer protection, intellectual property, credit/lending, cyber protection, deposits, securities and trading violation, virtual currencies, and data protection.

Fintech Compliance Checklist

The difference between understanding fintech regulations and compliance is vital for companies interested in growing market share and revenue. Additionally, appropriate management of stakeholders such as customers, company’s management, analysts from rating agencies and regulators in the industry enhances these objectives. Overall, whether it’s a company or a fintech partnership, lack of compliance exposes companies to three main areas of risk: reputational, regulatory and unpredictable risk due to the fast-paced growth of the fintech industry. Whether companies are start-ups or expanding, considering different regulations such as labor, data protection or taxation laws is vital.

Every company needs to understand its objectives, assess its vulnerabilities, develop a compliance program in line with the aforementioned. The compliance program needs to be efficient and effective on monitoring, screening and activity processes. Additionally, training employees on the compliance programs, integrating automated processes and scaling programs in line with regulations.

Fintech Compliance And Regulatory Best Practices

Under compliance in the Fintech marketplace, best practices include: 

Company and industry knowledge

To create a strong compliance program, a company needs to identify its vulnerabilities from onboarding customers to payment points. These areas ensure that there are customized approaches for compliance and company objectives. By creating and enforcing a risk-based approach that tailors compliance responses to individual situations, companies can scale and innovate in line with regulatory requirements.

Digital Only Enterprises

The new rules on fintech and digital-only banks operations are an opportunity for companies and regulators to forge a way forward on leveraging regulation and innovation so as to enhance the industry. 

Know Your Customer

Fintech companies and banks may be used for criminal activities thus the need to root out fraud and combat terrorist financing through measures to detect and deter suspicious activity thus the importance of due diligence among professionals and within companies.

Anti-Money Laundering Scrutiny

Banks and Fintech companies have to comply with anti-money laundering compliance. Lack of compliance may attract fines for example, in 2015, when the Financial Crimes Enforcement Network (FinCEN) levied a $700,000 penalty against a digital currency operator, as it did not have sufficient AML compliance measures. 

Consumer Protection

Companies exist to serve consumer interests, in a growing industry, protecting consumers is a duty for both regulators and companies. However, companies that do not align their objectives with consumer safety are at risk, for example, in 2016, a consumer lending company was fined $6 million by the Consumer Financial Protection Bureau for not offering borrowers a chance to improve their credit or get loans at lower rates.

Future of Fintech

Financial technology used to be the back-office support function for bankers and traders. Venture capitalists barely invested in the sector. Public companies in the industry were rarely compared to the high-growth darlings of Silicon Valley. But things have changed dramatically. Over the last decade, private venture capital has skyrocketed, as has the share of investment dollars going into fintech. Fintech has found its place in the innovation economy, and it has grown so much that it has become increasingly difficult to tell the hype

Reviews for The Certified Fintech Professional

[Phoenix Alexander · Rating: 5 out of 5 stars]

Great technical info, excellent certification
This book and the certification are excellent! Many thanks to the author of this excellent book, and specifically to GAFM Academy for issuing the distinguished certification.

[Irshad Sugiarto · Rating: 5 out of 5 stars]

Excellent content and world-class certification. It was worth it for every dollar spent.

[Peter Spoone · Rating: 5 out of 5 stars]

This book and the certification are excellent! I manage to secure a high-salary job just a few months after being certified by GAFM Academy. Many thanks to the author of this excellent book, and to GAFM Academy being the advanced learning institution for professional training and certifications.