โFintech companies are continuing to grow in popularity as they release innovative new products into the market. An increasing number of start-ups are entering the money transfer, payment technology, loaning, and lending space. Taking a more creative approach to the business of finance, these new start-ups have already released an impressive amount of cutting-edge technology so far this year.
Investment banks are finding it increasingly difficult to keep up with these innovative financial technology firms who specialize in one specific area, compared to traditional banks that usually cover multiple sectors.
The Fintech Field
โAccording to a report by McKinsey, $23 billion of venture and growth equity was invested in fintech between 2011 and 2016.1 This trend looks set to continue, with the investment forecast predicting more growth in the near future.
โFor many fintech companies, younger, less-experienced candidates (those with five or less yearsโ experience) hold the key to success. By targeting this demographic, firms can watch their talent grow organically. As more organizations expand in this manner, there is a greater integration of employees across each line of business.
โFor example, most fintech sales teams are spread across hunting, farming, and marketing, with smaller companies having less division of labor. In contrast, fintech giants tend to adopt a more streamlined process to help marketing materials convert into top-line dollars.
โCompared to last year, more senior-level employees are looking for new opportunities. There are a few reasons for this. A higher volume of top-level layoffs have taken place this year, while junior talent has been less affected. Plus, many at the senior management level, who better understand the direction of the firm in relation to funding and growth, have left their organizations to seek opportunities elsewhere.
To explore how to attract the worldโs best fintech talent, read our blog here.
โCandidate Trends
โMuch of the talent who are looking to move to a start-up have 10-20 yearsโ experience and want to try something new. However, a growing number of business graduates are also showing an interest in fintech jobs, rather than more traditional financial services careers. Blockchain-related roles are most popular, with the number of blockchain job adverts on LinkedIn increasing by more than 40% each quarter.2
โIt is the exciting work environment of start-ups that candidates find so attractive. While the risks of joining a start-up are acknowledged, the upside is that candidates are able to add immediate impact to the business.
โBarriers to market entry have remained relatively low as long as a niche product is identified and the means to go to market are strategically planned. Candidates want to work for exciting start-ups that specialize in a specific niche space and have a truly competitive advantage. On sales teams this is especially appealing as it allows for higher margin sales and higher commission potential.
โCandidates willing to take the risk associated with joining a start-up are rewarded with the opportunity to gain equity and bigger pay-outs in the future โ provided they impact the growth of the business.
To learn more about transformation and inspired growth in fintech recruitment industry trends, read our blog here.
โAreas of Growth and Decline
โWe are seeing increased growth in the big data analytics and investment research space. As new data sets and alternative data are produced, fintech firms are finding clever ways to create products that would be too costly and timely for banks to create in-house.
โEmphasis on the expert network space is decreasing as resources are being commoditized. In addition, we are seeing fewer sales into investment banks. Typically, the sales process with investment banks takes longer and is more regulated compared to the buy side.
โOn the other hand, selling into the buy side is a growing space. It appeals to candidates because there is greater risk-taking, capital raising, and diversification opportunities depending on the investment style of each firm.
To learn how making the right fintech sales impacts your bottom line, read our bloghere.
Geography Trends
โFive years ago, Silicon Valley was the heart of fintech start-ups, but now the focus is starting to shift away from the area. Unless the compensation package is phenomenal, candidates are reluctant to relocate there because of the high cost of living.
โBoston, New York, Chicago, and San Francisco are still major hubs for fintech start-ups. However, new companies are opening offices in more cost-efficient locations such as New Jersey, Atlanta, Portland, and Texas.
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Selby Jennings is a leading specialist recruitment agency for banking and financial services. For more than 15 years, we have given clients and candidates peace of mind that the recruitment process is in expert hands. Our continual investment in best-in-class technologies and consultant training enables us to recruit with speed, precision and accuracy. Today, Selby Jennings provides contingency and retained search recruitment across 11 offices in 6 countries. Contact us to find out how Selby Jennings can help you.
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