Fintech companies face numerous challenges in a fast-growing industry, including the rise of AI, cybersecurity risks, fraud detection, and embedded fintech trends.
Fintech companies are actively seeking solutions to integrate generative artificial intelligence (AI) features into their existing products, or developing new AI-driven products.
While AI and other technologies have the potential to lower costs, it is imperative to ensure that the technology is in sync with the appropriate workforce and job requirements.
Fintech startups are partnering with more established financial companies who are successfully safeguarding themselves against the risks of working autonomously and the acquired fintech’s because they feel more secure under the protection of their parent companies.
Tackling shortage of talent
Back in 2022, Charlotte Crosswell, who replaced the chair this month of the government-backed Centre for Finance, Innovation and Technology (CFIT), had warned that the ‘nation’s fintech industry cannot continue to assume that a stream of talent will continue to flow into the country from overseas.’
“Warning that the UK could risk losing its status as a global fintech hub if it did not address the challenges around the talent shortage, she said fintech firms had been grappling with a tightening of the talent pool since Brexit and that access to talent was currently the “biggest challenge” facing the industry”.
Charlie Conchie – ‘UK fintech ‘can’t assume talent will continue to flow from abroad warns sector chief’, City A.M UK must pursue overseas tech talent, says start-up body – CityAM
‘In a podcast interview, Ms Crosswell said that the sector “can’t always assume the talent’s going to be there” and that it had to be proactive in attracting overseas skills.
“It’s not a UK race for talent – it’s a global race for talent,” she said.
Fintech companies worldwide are in a race to recruit skilled professionals from the US, Asia, and Europe. Ms. Crosswell emphasised the importance of UK firms being able to attract and retain this international talent within the country, rather than depending on remote workers.
“At the moment we are seeing UK fintech often leverage overseas talent”. David Sapsted ‘The Relocation Magazine Talent shortage in fintech ‘a global plague’ | David Sapsted | Relocate magazine
The Minister for Tech and the Digital Economy in 2022, Chris Philp, emphasised the importance of enabling talented individuals from all over the globe to swiftly enter the UK.
Alongside the existing range of visa options for digital businesses, the introduction of the High Potential Individual and Scale-up visas will facilitate the recruitment of skilled professionals by UK digital companies, regardless of their location.
London surpassed New York and San Francisco as the leading fintech hub in the world for investment in the previous year. However, due to the current economic conditions and rising interest rates, there has been a significant decline in fintech investment in the UK.
According to John Hallsworth from KPMG, the investment in UK fintech dropped by 57% to $5.9 billion in the first half of 2023.UK fintech investment drops to $5.9 billion in H1 2023 – KPMG UK
Strategies to retain talent
Fintech organisations are enhancing their rewards by enhancing workplace flexibility, revamping the Employee Value Proposition, and offering more competitive salary packages, as stated in the WTW 2023 report.
For this reason, to attract and retain talent, these companies are now competing with their industry peers by reevaluating their salary packages and implementing innovative strategies that prioritise employee experience, all while aligning with their business objectives.
Addressing mental health and wellbeing
According to Ben Dorks, CEO of Ideagen, the risk of mental health absence and staff shortages cannot be overlooked. More than half of the CEOs surveyed expressed concern about mental health absence affecting their resilience, and nearly a quarter identified staff shortages as a potential issue.
It is crucial to invest in the health, safety, and well-being of employees to address these concerns and ensure the overall success of the organisation.
To effectively address talent retention, it is crucial for fintech companies to prioritise the promotion of positive health and well-being, along with offering competitive salary packages.
This holistic approach will enable them to effectively attract and retain top talent in the industry. By creating a work environment that values employee well-being and provides support for their physical and mental health, fintechs can foster a positive and productive workforce.
Tackling Diversity and Inclusion
One way to overcome talent shortage is by focusing on empowering girls and women in their educational journey. Encouraging them to pursue subjects that will equip them with the necessary skills for the future fintech industry is essential.
This can be achieved through various means, such as offering work experience opportunities, promoting the study of economics at higher levels, and providing business apprenticeships. By investing in the development of girls and women in fintech, companies can ensure a diverse and skilled workforce that is well-prepared for the industry’s demands.
According to a UK Government report on Digital Strategy, efforts have been made to address the underrepresentation of certain groups in the fintech industry.
In 2019, the government funded universities to create new AI and data science conversion courses, with a focus on providing scholarships for individuals from underrepresented backgrounds.
These conversion courses offer an opportunity for people to acquire digital skills or retrain, even if they have no prior experience in the field.
By providing access to education and training, the government aims to facilitate employment opportunities in the cutting-edge AI and data science sectors, promoting diversity and inclusivity in the industry.
Emergence of a skilled workforce
Global Fintech Talent Solutions Ltd believe in promoting diversity and inclusivity in the field of technology, particularly in fintech. To achieve this, we encourage fintech companies to invest in STEM courses, which will attract more applicants, especially women and underrepresented groups.
We also urge companies to review their inclusivity policies and workplace culture to bridge the gender gaps and create a more diverse workforce. To stay ahead in the fintech industry, it is crucial to align innovative technologies like AI with the skills and needs of the workforce. This includes ensuring that job roles, software, and systems comply with regulations.
It is important that Government continues to invest in education to address the gender gap and encourage more women and underrepresented groups to pursue IT courses.
Additionally, we champion the government’s initiative to provide visas that attract global talent. We also emphasise the importance of promoting an effective employee experience, which goes beyond competitive compensation packages and includes strategies to motivate and retain staff.
Marie Bosnjak-Director/Founder of Global Fintech Talent Solutions Ltd
https://global-fintech-talent-solutions.com.
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Sources
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- Tom Bleach-(August 2023)-‘Operational Fintech Trends in 2024 and Beyond With 28Stone, Ideagen, Finfra and Nexpay’, Fintech Times.Operational Fintech Trends in 2024 and Beyond; With 28Stone, Ideagen, Finfra and Nexpay | The Fintech Times
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- Charlie Conchie (Nov 2022) ‘UK fintech ‘can’t assume talent will continue to flow from abroad warns sector chief’-City A.M UK must pursue overseas tech talent, says start-up body – CityAM
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- David Sapsted (Jan 2023) ‘Talent shortage in fintech, a global plague’ The Relocation Magazine. Talent shortage in fintech ‘a global plague’ | David Sapsted | Relocate magazine
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- John Hallsworth (August 2023) ‘UK fintech investment drops to $5.9 billion in H1 2023 – down 57% in a year. KPMG UK fintech investment drops to $5.9 billion in H1 2023 – KPMG UK
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- UK Digital Strategy – GOV.UK (www.gov.uk)
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