Half of the fintech companies have stopped hiring employees
Half of all fintech firms have stopped hiring by 2023 due to the challenging economic climate, according to a major new report. During the first half of 2022, over 4,000 fintech employees lost their roles across 45 companies, from mortgage lenders to firms processing digital payments, further highlighting the impact challenging economic times are having on a sector.
With a global recession looming, the evolution of financial software and the development of fintech innovations will have a greater impact on consumers than ever in 2023, according to a new report – Exploring Fintech in 2023 – by Erlang Solutions, leading technology experts working with companies globally to build and deliver transformative, scalable and innovative technology solutions.
Half (51%) of fintech firms expect to put a hiring freeze in place this year, with almost a third (31%) not ruling out the idea – and 16% already have a freeze in place.
Large and mid-sized fintech firms are more likely to downsize than smaller firms, and large firms are almost twice as likely to close offices or stores – and reduce software licenses and seats – as their mid-sized rivals.
Small businesses were more likely to be focused on setting customers up for success in the event of a deeper recession.
The annual report, which brings together leading Fintech industry experts to examine the industry trends set to influence the year ahead, also looks at how the use of artificial intelligence (AI) is likely to continue to dominate the sector over the coming year. – and how companies can expect to see future regulatory developments in the coming months.
The agency argues that sustainability is no longer just a buzzword in fintech and will need to be at the heart of corporate cultures moving forward, and the report also provides new insights on embedded banking and blockchain from those at the center of the fintech revolution.
Francesco Cesarini, founder and CTO of Erlang Solutions, said: “While the threat of global recession brings challenges for fintech companies – and it is true that some may not survive – it is clear that fintech has really supported consumers in recent years with global challenges, and that it will continue to do so.
“As a people-focused consultancy, we want to support the creation of an industry that provides stability, flexibility and opportunity for clients and consumers alike. This will likely involve greater collaboration to create a diverse ecosystem that works for everyone, and we hope our report contributes to to spark these conversations.”
