In recent years, the Fintech industry has been a driving factor behind the restructuring of the financial services sector. Fintech has not only transformed the way we handle our finances with its creative solutions and disruptive technology, but it has also generated a large need for competent individuals. During the COVID-19 epidemic, the fintech market expanded quickly. According to the World Bank’s 2020 fintech study, fintech businesses reported a 13% year-over-year increase in transaction counts. Consequently, this has resulted in a significant demand for fintech expertise, and by the end of 2021, more than 300,000 individuals were employed by fintech organisations worldwide.

Fintech recruiting, on the other hand, is fraught with difficulties. That’s why we will discuss the particular problems that organisations in the fintech industry face when it comes to hiring people, as well as some best practices for overcoming these hurdles.

Challenges in Fintech Recruitment

It goes without saying that there is a shortage of skilled candidates who can drive the goals of fintech organisations. The prevalent challenges faced by these organisations are given below.

Scarcity of Tech Expertise With the Necessary Skill Sets

The shortage of tech talent with the appropriate skill sets is a pressing issue in Fintech Recruitment due to the rapidly evolving nature of the industry. First, outside of the industry, fintech skill sets are difficult to come by. Second, talented fintech professionals might seek stable work in industries that are not subject to VC funding cuts, such as retail banking, agriculture, logistics, and other market segments. As a result, in order to attract and retain good candidates, fintech firms must compete both inside and between industries.

This means a more refined recruitment procedure and methods are required for effective hiring in the fintech employment market. That is why, if a company wants to attract highly trained people, it should seek the assistance of fintech recruitment agencies who understand where to search, how to capture their attention, and how to shift the balances in favour of the firm. All of this necessitates time and effort in fintech recruitment.

Evaluating the Candidate’s Expertise

Fintech companies frequently require specialised expertise in fields such as blockchain, data analytics, algorithmic trading, and financial laws. These fields can be extremely technical and need specialised knowledge that may not be readily apparent through typical interview techniques. Unlike several other businesses, fintech lacks well-defined qualifications or standardised education courses. The lack of widely recognised qualifications might make correctly assessing a candidate’s skills challenging.

Also, top talent and positions, as we’ve seen, are less affected by layoffs. This indicates that the majority of job losses will fall on junior specialists (who are not exceptionally talented and are most likely novices in the sector) and mid-level talent (who have not yet had enough experience in their responsibilities). Thus, making hiring more difficult.

Matching Their Expectations

Fintech workers, particularly those with specialised expertise, sometimes have lofty salary expectations. Fintech enterprises may find it difficult to compete with the salary packages given by larger tech corporations or traditional banking institutions. While experienced fintech candidates often expect high compensation, they also anticipate a variety of bonuses and benefits. Pension payments, 401k plans, free lunches and snacks in the workplace, gym memberships, paid paternal and maternal leave, legal support, and various forms of health insurance—the list of benefits that fintech talent expects is vast.

With limited resources, fintech IT firms finds it hard to offer competitive compensation and benefits in congested markets such as the United States, Canada, the United Kingdom, or Switzerland.

Retaining Top Talents

Currently, fintech startups are struggling hard in the competition with established technology businesses, conventional financial institutions, when it comes to attracting experienced fintech talents. These competitors offer higher salary pacakages, better benefits, or larger bonuses, making it tough for startups to retain employees. Furthermore, the causes are similar to those seen in other businesses. Employees desire more income, more flexible work hours and locations, and prospects for growth. At the same time, they want educational opportunities, flexible office working hours, and well-being advantages such as gym memberships or medical insurance as benefits.

Best Practices in Fintech Recruitment

While recruiting and maintaining top talent is difficult, it is entirely possible if you understand the mechanics of the talent market, the variables that influence it, and where to search. The following are the industry trends and best practices for fintech hiring in 2023:

Hiring From Regions With Demonstrated Competence in Your Field

Fintech centres frequently have well-established industry networks and relationships. Hiring from these places may provide firms with access to key networks of experts, mentors, investors, and possible partners, allowing them to speed business growth and development. Hiring fintech recruitment experts may help ensure a cultural fit within your organisation. Professionals from these areas are frequently used to the fast-paced, entrepreneurial, and inventive atmosphere that is typical of fintech firms. Fintech hubs are often diverse and multicultural, attracting talent from all over the world. Hiring from these regions can help your organisation’s diversity, which is important for developing creativity, innovation, and a larger range of viewpoints.

Remote Hiring

Remote recruiting enables financial firms to access a worldwide labour pool. This broadens the pool of potential applicants, improving the likelihood of finding individuals with the necessary skills and competence for specialised fintech employment. Fintech centres such as Silicon Valley and London are not accessible to all candidates, limiting the variety of the skill pool. Remote hiring removes geographical constraints, allowing organisations to consider individuals from all around the world. In other sectors, offering good compensation with fewer amenities is the best option for recruiting in a highly competitive market. There are places where the cost of living is significantly cheaper than in the United States, Canada, the United Kingdom, or Switzerland, making it simpler to satisfy applicants’ compensation expectations.

Furthermore, remote recruiting promotes the development of an inclusive workforce, with employees who are more committed to attaining corporate goals. When talents from many nations and backgrounds are recognised for their efforts, they strive to achieve even greater outcomes. Inclusivity leads to happier employees and higher performance, which is critical during an economic slump.

Getting Help FromFintech Recruitment Agencies

External service providers are experts in the acquisition and recruiting of talent. They are well-versed in the fintech sector, its trends, and the unique skills and certifications needed. This knowledge can aid in the more efficient identification and attraction of elite personnel. Fintech recruitment agencies have large networks of potential applicants, including passive job seekers who are not actively looking for new possibilities. This can broaden a company’s talent pool beyond what it can access on its own.

Final Thoughts

Fintech recruiting is a complicated process that demands a deliberate approach to overcome hurdles and attract the right candidate. Fintech organisations can position themselves as attractive employers in this competitive industry by clearly defining roles, developing a strong employer brand, leveraging technology, prioritising soft skills, promoting diversity and inclusion, investing in continuous learning, collaborating with educational institutions, and offering competitive compensation and benefits. Finally, effective fintech recruiting is about identifying people who not only have the essential talents but also share the company’s culture and vision for the future of finance.

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