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FinTech – the use of technology in the financial industry – has had a revolutionary effect in many ways. It’s led to the rapid growth of start-ups in the industry in recent years. It’s also led to age-old financial institutions having to develop their own technology, often in partnership with the aforementioned start-ups. And it’s also having a massive effect on the recruitment sector.
The UK, and London in particular, has always been a major financial centre – and with a massive £2.6bn investment in UK FinTech last year alone, the City is set to become the global FinTech hub.
According to a recent survey by recruitment firm Robert Walters and market analysis experts Vacancy Soft, there was a 61% rise in FinTech vacancies in 2018 – in sharp contrast to many traditional banks, who were shedding jobs to reduce costs. That makes this the fastest-growing sector of London’s economy; and the uplift isn’t restricted to the capital, with the survey showing an 18% increase in vacancies in this sector across the regions too.
Many of the roles being created are on the tech side, such as developers and engineers, rather than financial functions like risk and compliance. Couple with Brexit concerns, the increase in demand for IT talent has led to salary inflations for IT professionals of around 6 to 8%, according to Robert Walters. They also found other in-demand roles within FinTech are those in marketing and PR.
All good news for recruiters – but will the FinTech bubble burst anytime soon?
According to a KPMG report in late 2017, there are certain areas for concern. It pointed out that, while the UK has strong talent in financial services, its tech and entrepreneurial skills lag behind other tech hubs such as California and Israel. There’s a limited amount of training schemes and courses to improve that situation too – causing employers to look further afield (according to the report, 42% of FinTech workers are already from outside the UK).
As always with such an ultra-competitive market, employers will need to not just offer premium pay but look at other ways to make their job attractive to the right talent – such as flexible working, and measuring productivity by output rather than hours worked. And it’s up to recruiters to make sure their clients are aware of that from the start.
What are your views on FinTech recruitment? Have you had problems finding the right talent? How do you think Brexit will affect FinTech? Join the conversation over on LinkedIn and Twitter #BackOffice!