What does the skills shortage mean for the Fintech industry?

Technology has changed the way finance is conducted. Everything from payments to investment advice and regulatory practices is being revolutionised by new, innovative FinTech start-ups, while revolutionary concepts such as blockchain are set to make many traditional banking functions redundant.

Large investment banks have been losing out on the top IT talent to SMEs and start-ups in the FinTech sector. Rather than competing on salary, smaller start-ups are able to offer stock options and benefits, such as flexible working hours and the ability to take on more responsibility and innovate. As a result, many banking professionals are handing in their resignations and making the leap into the FinTech sector, happy to accept dramatic salary cuts in return for a share of the equity.

Therefore, in the last few years, the investment banking sector has increased investment in technology staff, in order to strengthen its own tech divisions and keep up with the digital revolution.

What this means

The FinTech industry, has to a degree, inspired cooperation between banks and innovative technology businesses. But there is only so much IT talent to go around. The IT sector is suffering from a supply and demand situation and for the FinTech industry, this shortage of talent needs to be addressed for the industry to fully flourish.

Solutions

It’s imperative to have a forward- thinking plan in recruitment and that you have all bases covered, to ensure your business is not missing out on the best talent available to grow your company.

As the war for talent goes on, the demand will continue to outweigh supply. One solution is for banks and Fintech companies alike to address the issue, by hiring professionally competent individuals and training them on the job, rather than waiting for the right experienced candidate and throwing them into the job with no practical experience.

The training process does require effort, but the investment will be worth the reward you’ll receive in return. Fundamentally it is the people with a passion for technology that will provide the long-term competitive edge for any business.

For the Future

There have been a number of initiatives to teach IT. The UK government has taken a bold step by becoming the first in the world to establish coding and digital as part of the school national curriculum.

This is encouraging, as South Korea has shown, an education that focuses on science, maths and tech reaps rewards for global tech innovation. But until qualified graduates come onto the market, there will be a lack of relevant skills to go around.

Alec Laurie, Managing Director & Principal Recruitment Consultant, Laudale

Image source: Shutterstock/Montri Nipitvittaya