The Future of Working in Finance

The Financial Industry is changing

  • 30%+ of Rotman grads work in the financial industry
  • the largest fraction of BComs and MBA specialize in finance
  • Rotman offers the MFRM, MFin, and MFE

Over the next 3-5 years, executives plan on using:

over 50% of executives believe that more than 40% of jobs will change fundamentally

  • 98% predictive analytics
  • 93% artificial intelligence
  • 81% process automation
  • 73% blockchain technology

relative wage=avg wage in finance/avg rest of economy

Source: Philippon (AER 2015) "Has the U.S. Finance Industry Become Less Efficient?"

in a nutshell: why students choose to go into finance

The Old World of Trading

Today's World of Trading

Main Structural Change #1

Main Structural Change #2

Everything is data

The driving forces

master analytics 

master applications

data

tech infrastructure

Competitive edge?

Finance = predicting

How will working in finance change?

predicting = ever cheaper

find new things to predict

get replaced by those who find new things

new tech enables new players

Disseminate: New course offerings

What are we doing about it?

BCom

MFRM

MBA

MFin

ExecEd

Develop Understanding & Dissemination: Industry Engagement

Summer of 2018: FinHub ran several projects with FIs, jointly with Engineering's CMTE

Will AI kill your future?

Remember: all these jobs were lost with computer mainframes -- yet that's when the financial industry "took" off!

Develop Understanding & Dissemination: Industry Engagement

What is FinHub doing about it?

Summer of 2018: FinHub ran several projects with FIs, jointly with Engineering's CMTE

TD Bank

(5 projects, e.g., data-driven universal collateral management)

Vexo

(blockchain-driven exempt market issuance solution)

TransUnion

(data-driven loan product)

Karen HR

(AI-driven HR)

Cogniframe

(data-driven loan analysis)

BluePier

(data-driven pension management)

Summer of 2019: FinHub

TD Bank

10 projects

possibly other FIs

possibly FinTechs

Our Model

Projects

Talent

Results

Project Procedure

  1. Partner organization proposes projects 
    • basic premise, needs and wants for talent, timeline, start date, type of deliverable, funding 
  2. FinHub matches project with talent
    • solicits student applications
    • proposes teams
  3. Partner organization reviews teams and has right of refusal

Matching Talent with Projects

Students apply

FinHub processes preferences and checks whether candidates have the required skills

FinHub proposes teams to project partners.

Project partners and candidates ascertain if they are a good match.

Teams are formed

Step 1

Step 2

Step 3

Step 4

Step 5

Nov 6

until mid-Dec

end Jan

Feb 1

May 1

Step 6

Work begins

early Jan

Project Funding

  1. MBA students may receive academic credit through internship program
  2. Partner organization pays students standard rates
  3. Projects have a faculty mentor

Research

Industry Engagement

Teaching

@financeUTM

andreas.park@rotman.utoronto.ca

slides.com/ap248

sites.google.com/site/parkandreas/

FinHub Summer Projects 2018

By Andreas Park

FinHub Summer Projects 2018

  • 785