Fintech’s employee flexibility could give it a leg up on big banks
80% of fintech companies are fully flexible compared to 20% of financial companies.
Most financial firms offer flexibility in workplaces, but a report from Scoop suggests that over time the fintech subsector will use flexibility as a wedge against the big banks on site to recruit workers.
Flexibility is the second most important criteria for job seekers after compensation, and the impact reaches far beyond individuals’ work choices, according to Rob Sadow, CEO, Scoop.
The Flex Index finds that almost 80 percent of fintech companies are fully flexible. And while Jamie Dimon caused a stir with his full-time tenure at the office of JPMorgan Chase, only 20 percent of financial firms are fully on site. Most use hybrid schedules.
The Flex Index is based on insights from 4,000 companies and 25,000 office locations that together employ more than 100 million people.
Based on the need for personal contact
Basil Onyia, CPHHR, MBA-HR and senior HR specialist at Worldline, the fourth largest payment provider in the world, tells GlobeSt.com: “It comes down to two factors: the business models and client comfort,
“For organizations like Worldline and others in fintech that primarily serve as a B2B company in the digital space, offering a fully remote or hybrid model may be an easier shift because our customers are other organizations that don’t need as much personal contact and are quite spread across the nationality,” said Onyia.
“However, with financial services firms, such as wealth management companies, brokerages, investment firms and other B2C, consumers in our society still need and rely on the face-to-face contact that provides reassurance more than an over-the-phone conversation or electronic correspondence.
“Especially when their personal finances come into play. This factor plays a role in how flexible an organization can be if its clientele – its revenue – requires or prefers to walk in the door rather than call in or go online.”
Fintech May Re-Track Remote-First Work Policies
Sarah Bouzarouata, senior manager, labor dynamics and industry research, JLL, tells GlobeSt.com that fintech companies face a unique set of challenges in the new working age.
“They must compete with both technology organizations and traditional banking and financial services, now navigating acute financial pressures amid stock market volatility and dwindling startup cash reserves,” she said.
“This has led to a wave of ongoing consolidation across the sector. In fact, fintech companies accounted for over 50% of the largest sublease space added in the US over the past nine months. They are highly regulated compared to the tech industry, so some are limited in the flexibility they can provide employees and are also more exposed to loss of income in the current economic environment than traditional banks.”
Bouzarouata said fintech companies based in markets with a heavier concentration of Big Tech companies are more likely to offer flexibility, especially in markets with uncomfortable commutes.
“This has traditionally acted as a lever for attracting talent from banks that are less flexible,” she said. “However, a growing number of leading technology companies have recently withdrawn their remote-first policies, so this could serve as a catalyst for fintech companies to follow suit.”
