Why is there a need for paradigm shift in Finance programmes?

Twenty-five years ago, trading and investment decisions in the finance industry were mainly driven by what investors read in the newspaper or learnt through personal conversations. These days, with the massive amount of financial data generated every minute, it is only high computation power machines that can keep up with the quantity of the data. Nearly all the trading volume in the equity market today is driven by algorithms and computers rather than human traders.

Finance has entered a new era, and the force behind this evolution is data and technology. With the increasing importance of data and technology, financial institutions are trying to capitalise it; wherein, Machine Learning and Deep Learning algorithms are used to improve their trading and investment performances, replacing traditional financial theory. Hence, leading to the era of data-driven finance.

In conjunction with the advent of data-driven finance, open-source software such as Python and R have ubiquitously become the go-to technology platforms in the finance industry. Five years back, a regular run of the mill finance programme taught at universities and colleges would have been enough for the finance industry. However, in the present scenario, this is just not adequate. Financial institutions all over the world now use new technology such as Big Data, Blockchain and open-source software like R and Python and their respective integrated environment of numerous data analysis, data visualisation, and the machine learning packages to make investment decisions. In the present scenario, students need to have adequate knowledge of software like R and Python, in order to meet the demands of the finance industry.

A pragmatic approach to a finance programme

A complete revamp of the existing finance programmes is the need of the hour. Programmes such as BCom., BMS and BBA taught at several eminent Central, State as well as Deemed to be Universities seem lacking; and should be upgraded to the present developments in the finance industry. The programme should ensure that students are at the cutting edge of finance. Post their graduation, the students should hit the ground running, be it in the job market or in the pursuance of a higher degree.

The curriculum should include a judicious mix of courses in the area of Accounting, Finance, Economics, Management, Quantitative Skills & FinTech; and industry-oriented courses like Financial Modelling so that students not only have a strong foundation but are also industry-ready as well as aware of the industry standards. Features of certifications from specialised bodies such as CFA Institute, NISM, should be included in course work to enhance the student’s industry skill set. Hands-on learning of software-based courses on R and Python is must to supplement their theoretical knowledge. A domain-specific elective is a necessity to ensure that the students have in-depth knowledge in a domain of their choice; specifically, in specialisations like FinTech & Analytics and Financial Planning & Risk Management. Moreover, with the global interconnectedness of the finance industry, it is imperative that the students have global exposure and an international perspective. It can be through MoUs with foreign universities or summer schools in collaboration with foreign universities.

Overall, the curriculum should be robust, customisable, give international exposure to students, and it should have aspects of technology. The BCom (Hons) programme at Jindal School of Banking and Finance, O.P. Jindal Global University has already oriented its curriculum towards these requirements. It is high time that other Universities and Colleges take the example of JSBF and start rethinking their finance programmes.

About the author:

Dr Sudipta Sen is an Assistant Professor and Assistant Dean – Academic Affairs at Jindal School of Banking and Finance, O.P. Jindal Global University.

Note: The views expressed in this article are solely author’s own and do not reflect/represent those of Shiksha