FinTech, which stands for “Finance and Technology,” as the name implies, combines the two words that bring technology into the traditional financial sector. This mind-boggling concept makes the universe of money coherent and accessible to its users.
We can understand the significance of fintech by reviewing the report published by Market Data Forecast, which says the global market value of fintech is supposed to reach nearly $324 billion by the end of 2026.
If the fintech market aims to hit this specific value, it surely needs a massive talent pool to help it grow and revolutionize the orthodox financial world. Suppose you are a business leader or a stakeholder in the fintech industry.
In that case, you must know about the latest fintech talent acquisition trend to understand the future of this industry.
This blog will analyze FinTech’s overall job market for candidate mapping purposes, the challenges involved in talent acquisition, and the best possible solutions to cater to those challenges.
An Overview of the Fintech Job Market
Despite the imminent threat of recession and a spike in interest rates, the banking and finance industry is doing well globally, and so is fintech. As per the report published in 2020 by the World Bank, fintech companies showed growth of 11% to 13% during COVID-19. This rapid growth undoubtedly underscores the acceptability of this technology.
The significance of fintech is multiplying as more people adopt it and use it in their daily lives, opening up a new job market. To make banking procedures user-friendly, the banking industry, particularly retail banks, faces fierce competition.
This led to the complete process—from opening a bank account to conducting transactions—becoming digital. These digital banking apps indeed require a prominent workforce for management and upgradation.
If we evaluate the data until May 2023, there were 9,681 fintech startups in EMEA (Europe, the Middle East, and Asia). Looking at these statistics, we can easily understand how efficiently fintech is growing. This upward trajectory will ultimately create a need for skilled professionals, which will increase in the coming decade.
Strategic leaders in fintech should proactively land the best resource from the market before it gets scarce. Are you aiming to acquire the best professionals for your fintech startup? Understanding the primary roles required to build a proficient team is crucial. The following section will provide insights into these roles.
In-demand Roles in Fintech
Fintech, being a vast field, includes diverse roles to perform its operations, of which we will be discussing the most prominent ones. The core team of fintech specialists involves a software engineer, cyber security expert, data analyst, and operation management team.
Let’s delve deep into these roles to learn more details about them.
A software engineer is considered the backbone of any tech team when developing any technology. Every field is adopting technology, from agriculture to banking and finance, due to which expert software developers are already well-placed.
Fintech relies heavily on blockchain and cloud computing, making candidate mapping difficult, particularly in this field.
Cyber Security Expert
After software development, the most crucial task is securing the whole setup, especially when an ample amount of money is involved. According to Statista, the financial industry faced a cyber breach of $5.9 million solely in 2023. This data can help us understand the significance of cybersecurity experts in the financial world.
To secure your setup, you must acquire expert cybersecurity professionals, which will be challenging and require expert recruitment specialists’ assistance.
According to business leaders, data is the new oil, so sorting and analyzing user data is crucial to understanding any business. The importance of aligning and protecting your users’ data increases, especially in a sensitive industry like fintech.
To achieve this goal, you would require a team of data analysts. Due to the few skilled candidates and high demand, finding experts in this field can be challenging, but they will be crucial to your development.
Operations Management Team
After acquiring talent in the fields, as mentioned earlier, you would require a team to look after the operations management side of the company. This team would consist of professionals capable of handling product management, evaluating risks, legal compliance, etc.
Although professionals for these general roles are available in the job market, finding a niche-specific professional will require an executive search, posing a challenge for your recruitment team.
Now that we have explored the roles and their demands, acquiring talent for these roles might include some critical challenges, and the next section will highlight some of them.
Challenges of Fintech Talent Acquisition
In the fintech industry, finding top talent will be challenging in 2023 due to high demand. Still, the process involves some other complications, which will be discussed in this blog section.
- Finding the Required Combination of Skill Sets
The skill set required for the fintech industry is not only needed by this industry but is also in demand for other fields, including those striving to digitalize. Due to this, banks have to compete in their industry and with different sectors to acquire the most relevant skill set.
- Evaluating Potential Candidates
Evaluating potential candidates can be a challenge in itself and will require diverse expertise and experience. Recruiters must deeply understand the financial industry and technological advancements to assess applicants for fintech roles effectively.
- Providing Competitive Compensation
High demand makes the skill more valuable, resulting in increased compensation and expectations. To meet these expectations, you should have a reasonable budget, and along with that, you should be creative while addressing employee’s well-being.
These are the most fundamental issues any fintech company can encounter with effective hiring. Effective strategies are essential to address these issues; the following section will suggest how to do so.
Strategies to Address Challenges of Fintech Talent Acquisition
Strategic planning can help you address the challenges of fintech talent acquisition and ensure a successful recruitment process. These strategies include identifying the organization’s current and future needs and understanding the competitive landscape to attract top talent.
- Building a Strong Employer Brand
The top talent in the market can be drawn in by developing a strong employer brand that matches the aspirations of potential candidates and taking the time to understand the candidate persona. A strong employer brand will attract talented and motivated people to the fintech sector, increasing employee retention and long-term success.
- Switching to Remote Work Culture
Adopting a remote work culture can lead you toward a larger talent pool, and you can also recruit the best possible candidates from around the world.
This also allows you to build an inclusive work environment in your company through a diverse workforce. Although there might be some challenges in managing a remote team, this brings new exposure and perspective.
- Hiring Recruitment Agency
Getting services from a professional recruitment agency like RFS HR can be the most effective way to identify and attract top talent in the fintech industry.
These agencies can screen and shortlist the best candidates for a particular position using their extensive networks of potential employees and their industry knowledge.
Recruitment agencies also have the knowledge and experience to understand and align the candidate’s persona with the organization’s requirements.
Being a thought leader in a diverse industry like fintech is complicated, and you should stay informed to make wise decisions. As was mentioned in the blog, finding the best employees for your business can be challenging, and you need to be proactive if you want to compete.
But making the right choice and getting assistance from qualified recruiters can lighten your load and keep things running smoothly. It assists in attracting the best candidates from the market and keeps you agile with the latest trends.
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