Fintech may be a ‘brutal’ workplace, but are ‘toxic’ claims exaggerated?

Fintech’s workplace culture is more “brutal” and “aggressive” than other sectors, but it is not the toxic environment portrayed in the media, experts say.

Fintech is hailed as a British economic jewel, but the stratospheric rise of some of its start-up darlings has been marred by accusations that it has come at a human cost.

Allegations of toxic work environments, macho cultures, unattainable goals, unpaid work and high staff turnover have blighted fintech’s copybook over the years.

Company culture in the spotlight

Fintech’s corporate culture was again in the spotlight this week after neobank Revolut, which has been the subject of a number of work environment controversies, said it was parachuting into a team as it appears to address criticism of its work culture.

The team, which will include experts in psychology and behavioral science, is part of a package of measures by Revolut to inspire a more “human” approach to working life and ensure staff are “approachable” and “respectful”.

Lately, Revolut’s Stakhanovite work culture, exemplified by its CEO and co-founder Nik Storonskyits clarion call to “get the shit out of it”, has involved grueling 13-hour days and weekend work, which has led to staff being allegedly driven out.

As part of this week’s cultural revamp, Revolut’s unequivocal promise to find “execution machines” has been replaced with softer staff mantras such as “shoot for the moon” and “push the envelope”.

Yet Revolut, valued at £27 billion and with over 25 million retail customers, is not the only fintech facing questions about its corporate culture. (Free trade, have, for example, also faced criticism over their workplace culture), while traditional banks have not been immune to the accusation either.

Fintech employees “satisfied”

A look at the job page Glass door shows that Revolut has a worker rating of 3.6, which equates to “satisfied”, with workers complaining about work-life balance but praising it in other areas, such as a place to acquire transferable skills. Revolut’s CEO has a 75 percent approval rating, according to Glassdoor.

Revolut is slightly better than rival neobanks Monzo and Starlingwhich have 3.8 and 3.9 ratings respectively.

As for fintech as a whole having issues with workplace culture, experts point out that fintech today is a broad church (encompassing neobanks, investment apps, lenders, B2B players and more), so cultures can vary between the various fintech sub-industries.

“Some fintechs have had a reputation for a ‘growth at any cost’ mindset synonymous with burnout.”

Bruce Davis, a co-founder of Zopa and co-founder and joint MD at Abundance investmentsays it would be “dangerous” to bring fintech under one umbrella.

Davis says: “If you are a regulated firm, culture should certainly be a priority, just as it is in any bank or other large financial institution, but the systems and controls you need in a small company are very different.

“Initiatives like BCorp force companies (large and small) to think more strategically and holistically about the needs of all their stakeholders – which of course includes employees. Fintech is no more or less immune to the problems of corporate culture experienced in other sectors.”

Startups can be “brutal”

But fintech recruitment managers disagree, saying that, unlike other industries, fintech can be “brutal” and that candidates can be put off by its “aggressive” reputation in the workplace.

Ben Rosen, founder and CEO of the recruitment company Inspiring interns, said: “There is a common ‘work hard, play hard’ mentality in the fintech industry that can be taken too seriously in explaining an aggressive or toxic culture.

“As the fintech industry is relatively new, many startups compete with each other as a survival of the fittest approach to success.”

Katherine Farquharson, director of Storm 2, the global fintech recruitment agency, which has over half a million fintech candidates in its network, said: “Compared to financial services, technology is more brutal I would say. There is less emphasis on friendship and more emphasis on business. It is more difficult to build friendships in fintech.”

Millennial candidates intimidated by fintech’s negative perception

Rosen adds that millennial generation candidates may be intimidated by a negative perception of fintech.

He said: “Recruiters are often concerned about the low gender diversity in the fintech industry. Most of our recruits are millennials, who often consider contribution to a business and ethical values ​​at the top of their list when choosing a company to work for.

“This can be challenging in the fintech industry when it is associated with an aggressive reputation.”

Fintech no longer macho culture

Gemma Younggrowth manager, TechPassport, who has worked in fintech for over 20 years, says fintech, but has now moved away from the macho culture that once dogged it.

She remembers being worried about the impact having her first child would have on her fintech career.

Young says: “I remember the pressure of having to go back to work full-time with no flexible options, as a woman who wanted a family, you didn’t have to talk about it and then almost pretend you didn’t have constraints at home that would hold. you back.

“Even looking for a job shortly after I got married, I remember being told ‘what’s the point you’re going to have kids soon.’

Amidst the current tough economic times, a fintech leader says the gap between growth at any cost, fintechs with “hassle culture” and “employee first” startups is widening.

Helen Beurier, Chief People Officer, Zopa, said: “Some fintechs have had a reputation for a ‘growth at any cost’ mindset synonymous with burnout. The lived experiences of recent times, of the pandemic and of economic uncertainty, have forced companies to prioritize sustainable growth and profitability.

“This requires stability, loyalty and productivity from happy and engaged employees.”

Corporate culture criticism exaggerated by the media

Or it could be, as another executive suggests, that fintech’s workplace challenges are no different than other industries, but have been exaggerated by the media.

Ralph Rogge, CEO and co-founder of Crezco, said: “I doubt that the fintech sector is disproportionately exposed to cultural challenges compared to other sectors.

– It is excessively represented in the media. Uber supposedly has a terrible culture, Volkswagenits emissions scandal was shocking, while Tesla is the subject of a number of harassment allegations. Does the car industry also suffer from cultural challenges in the workplace?

“Financial sectors are probably more easily associated with greedy vices because their trade is handling money, not building bridges, educating students or solving cancer.”

Culture comes from the top down

By many accounts, Revolut, which is currently trying to secure a UK banking license as it looks set to become a “super app”, has been a runaway success.

Snapping up over 25 million retail customers in just over seven years, it has come a long way since its origins as a money transfer company, with dozens of products on both the personal and business side of the company.

Storonsky has been crucial to this success, and his brusque management style may not be everyone’s cup of tea, but it is paying off.

Martin Campbell, a fintech consultant, believes Storonsky’s leadership style has been used to harm fintech as a whole.

Campbell said: “Nik Storonsky’s Revolut has become the poster child for the struggles with corporate culture. But most believe that as a real problem it is limited to that firm and is a result of the personal style of the CEO, rather than something common across fintech as a sector.”

Other startups will emulate Revolut and its CEO

But Rogge says the success of Revolut and its CEO will mean many fintechs will try to copy their approach.

He said: “Given the success of Revolut and Nikolay Storonsky, there are probably many startups trying to imitate them in every way instead of being true to themselves.”

However, he adds the reminder that “we saw the same thing with apple and Steve Jobs. It doesn’t work”.