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FinTech Trends for CPAs

August 30, 2022
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The world of financial technology (or “FinTech”) is changing by the minute. As they grow, FinTech accounting and technology trends in other areas of the financial industry are significantly affecting CPAs and financial professionals as well. Recent innovations in the realm of Web3 and blockchain, artificial intelligence, data analytics, open banking, and other technologies are a guarantee that the role of the CPA, and the technical skills required, will be vastly different than they were ten, or even five, years ago. Gone is the “number cruncher” of the past, and in its place stands a savvy financial consultant who is well-versed not only in business operations, but also in the latest technologies.1

This sounds like a major challenge, but it’s also an amazing opportunity for CPAs who are ready to ride the waves of this FinTech tsunami. Keep reading to learn about the FinTech trends of 2022 and how you can be ready to take your CPA career to new levels.

How Will FinTech Affect the Accounting Industry?

If you’re working as a certified public accountant, you usually consult with individuals, organizations, and businesses so that they can comply with state and federal tax regulations while achieving their financial goals.2 But as other individuals and companies embrace more technology in their financial transactions, you will need to as well, especially if you want to remain competitive in the field.

Adoption of FinTech has exploded in recent years. According to McKinsey & Company, 42% of consumers had used at least one FinTech platform by the time we were six months into the COVID-19 pandemic.3 Venture Scanner reported a 144% rise in FinTech investments in 2021 compared to 2020, and Research and Markets predict that the global FinTech market will expand to $31.5 billion by 2026. This is more than four times what it was in 2020.4

How is the FinTech disruption in the financial industry changing accounting specifically? Today’s CPAs will need a deep understanding of technology, as well as communication skills, to explain complex ideas and systems to their clients. Recent trends in accounting include the rise of cloud-based software and virtual communication, enhanced data security, and increased requests by clients for advisory accounting services.5 Other important trends for CPAs include the use of data analytics and financial forecasting, automated processes, artificial intelligence (AI), and blockchain technology.5

Another recent trend in accounting is a digital skills gap when it comes to newer technologies. In a 2021 survey by the U.K.-based Institute of Financial Accountants (IFA), accounting automation and cloud-based accounting tools are seen as having the most impact on accounting in the future. However, just over half of those surveyed had “some” knowledge of these technologies, while 15% had none at all. 47% of respondents believed that additional training, such as in AI, would help them to face future challenges in their accounting profession.6

Top FinTech Trends in 2022

If you’re interested in advancing your financial career to become or move up a CPA, here are 2022’s top FinTech trends of which you should be aware.

Artificial Intelligence (AI) and Robotic Process Automation

As a CPA, you will no longer be doing manual entry of financial data. FinTech accounting has revolutionized the way CPAs work. Accounting firms are now using automated processes and AI to streamline their operations. Software can now prepare financial statements, analyze documents, identify fraud, and manage customer relationships. Accountants can then focus on higher-value tasks like analysis, reporting, and presenting their findings to stakeholders.5

Cloud Computing

Digital interactions and cloud-based financial services have become extremely popular since the pandemic. An “edge cloud” is a digital ecosystem that offers computing resources and storage. There are Cloud-Containers-as-a-Service (CaaS) and cloud microservices architecture. AI will be integrated into these cloud-based platforms as well, which means AI knowledge will be fruitful across skill sets. This architecture supports open banking (open API) and bank digitalization, in partnership with FinTech companies.4,7

Blockchain Technology

With the financial industry’s digital transformation and the growth of cryptocurrency, there is an increasing demand for Blockchain-as-a-Service (BaaS) products. Blockchain technology and decentralized ledgers are already being used for business invoicing and cross-border payments. Thirteen of the world’s largest banks have invested a total of $3 billion in cryptocurrency development.7,8 Blockchain is a key part of Web3, which seeks to decentralize the internet (including finance) so that consumers and corporations can retain ownership over their digital data. It also promises greater security and the ability to fight fraud.9

Data Analytics and Forecasting

As financial data becomes more complex, data science knowledge is becoming an increasingly important skill for CPAs. Data analytics and forecasting skills help accountants interpret large amounts of data to create actionable forecasts for businesses.5 As more companies adopt data analytics software, tools, and workforces, it will be highly valuable for accountants to be able to “speak the language of data.”

Open Banking

Open banking, also known as open API, provides the exchange of bank client information to third parties with the owner’s consent. With open API, a bank can provide client financial information to stores, insurance companies, and other entities. This can allow individuals to purchase items online, obtain insurance or a loan, or make installment payments more quickly and seamlessly.4

Regulatory Technology (RegTech)

RegTech refers to a digital platform that helps companies comply with industry regulations. Depending on the industry, these regulations can be extremely complex, especially for international firms. This software automates tasks, monitors the organization’s data security, and alerts banks and users about potential fraud.4 As for the importance of this technology in the financial industry, Grand View Research forecasts a 52% growth of this compliance software by 2025, with a value of $55.28 billion.10

The Demand for CPAs with Diverse Skills

Since the financial industry is changing so rapidly, the latest FinTech accounting trends require recent training and education. With CPAs now being expected to take on consulting roles, in addition to navigating clients through new technology such as AI and data analytics, employers are looking for candidates with diverse skills. Accountants wanting to stay at the forefront of their field need to update their knowledge and skills regularly to be ahead of the curve.5

Be Ready for the Future of FinTech Accounting

The Yeshiva University online Master of Science in Accounting program prepares accounting professionals with the knowledge and skills they need to pass their certified public accountant (CPA) exam confidently and excel in the growing field of FinTech accounting.

Whether you studied accounting as an undergraduate or you’re interested in a career change, this rigorous program provides training in traditional accounting software and advanced accounting principles. Esteemed business professionals and intellectuals share their deep understanding of new FinTech trends such as blockchain, cryptocurrencies, AI, and other exciting new technologies.

For more information about the Yeshiva University online Master of Science in Accounting program, contact an Admissions Advisor today.

Sources
  1. Retrieved on July 20, 2022, from forbes.com/sites/forbesfinancecouncil/2022/05/04/the-future-of-accounting-is-much-more-than-crunching-numbers/?sh=4baa3e77ac91
  2. Retrieved on July 20, 2022, from us.aicpa.org/becomeacpa/gettingstarted/frequentlyaskedquestions
  3. Retrieved on July 20, 2022, from mckinsey.com/industries/financial-services/our-insights/how-us-customers-attitudes-to-FinTech-are-shifting-during-the-pandemic
  4. Retrieved on July 20, 2022, from finextra.com/blogposting/22232/ten-FinTech-trends-to-follow-in-2022
  5. Retrieved on July 20, 2022, from thebossmagazine.com/top-2022-accounting-trends-with-john-savignano/
  6. Retrieved on July 20, 2022, from accountancyage.com/2022/01/26/what-are-the-key-accounting-industry-trends-to-watch-in-2022/
  7. Retrieved on July 20, 2022, from blog.strands.com/5-top-FinTech-trends-in-2022
  8. Retrieved on July 20, 2022, from blockdata.tech/blog/general/banks-investing-blockchain-companies
  9. Retrieved on July 20, 2022, from forbes.com/sites/forbesbusinesscouncil/2022/03/30/six-FinTech-trends-to-watch-in-2022/?sh=1fe5a61311b3
  10. Retrieved on July 20, 2022, from grandviewresearch.com/industry-analysis/regulatory-technology-market