Fintechs are becoming far more discerning about who they hire
Things are not what they used to be for the fintech industry. Fintech firms are still hiring, but they are becoming much more selective about who they recruit.
Deepali Vyas, Global Head of FinTech, Payments, Crypto & Applied Intelligence for Kornferry in New York, says candidates for fintech jobs no longer have more offers. The supply of fintech roles is shrinking.
It is easy to see why the fintech industry has lost its spring. CB Insights says fintech funding fell 18% year-over-year in the first quarter, to hit its lowest level since 2018. Bank fintechs specifically experienced a 48% decline in funding. James Gorman, managing director of Morgan Stanley, says the fintech space is heading towards “a bit of a washout” after companies traded to valuations the bank “could only dream of.” Consolidation is coming to fintech, Gorman said. And consolidation usually means cutbacks. “ONE a lot of departure will happen, says Vyas.
As uncertainty sets in, Vyas suggests that people in fintech are more willing to move jobs. In the past, it was difficult to persuade candidates with stock options for new roles. Now that valuations have fallen massively, the willingness to consider alternatives has increased. And Vyas says fintechs are, “take oneadvantage of some of the talent that is on the market that wouldn’t have been before.”
However, no one wants to jump from one shaky fintech to another. With candidates wary of equity valuations, Vyas says fintechs are under pressure to pay higher wages, which in itself could increase pressure on their cash flow. To overcome this, she suggests awarding candidates “milestone bonuses” for retention and “refreshing equity” with additional shares to reward performance (or compensate for a falling share price).
While some are still lured into new fintech jobs by the compensation, the real selling point for fintech careers is lifestyle. The banks want people in the office and demand non-hybrid working practices, says Vyas. Fintechs, however, have the “agility and agility” to create a hybrid environment. Some, such as Revolut, allow employees to work wherever they want in their home country.
As fintech employment falls, Vyas says smaller firms are better suited to recruit. Salary is no longer “overinflated”. Early-stage fintechs may be particularly interested in people from traditional finance, she added. – They need to build their institutional knowledge.
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