Closing the Fintech Talent Supply Gap with Strategic Workforce Solutions

Fintech, that is, financial technology, has brought about a significant shift in the way people think about investing and managing finances.  According to Forbes, the fintech sector is one of the fastest-growing sectors at present, and by 2030, it is anticipated to provide for about 25% of banking valuations and $1.5 trillion in annual revenue. With this forecasted growth and the constant evolution of the industry, fintech businesses are facing a huge demand for skilled talent. 

This article gives an overview of the fintech talent supply landscape, followed by the major fintech staffing challenges leading to fintech talent shortages. It will also demonstrate the ways in which the fintech talent supply gap can be diminished with strategic workforce solutions.

Understanding the fintech talent supply landscape

Just like most other industries, the fintech industry is found to grow and evolve at a rapid and constant pace. There is a multitude of factors behind this growth and evolution, some of which are enhanced penetration of digital finance tools and apps, rise in online e-commerce, springing up of AI and automation for improved customer service, and efficiency of blockchain technology in the decentralization of banking and finance processes. While these fintech industry trends have opened doors for new job roles and opportunities, there is a steep gap found in the fintech talent supply, making it challenging for companies to get hold of skilled and proficient individuals or create an internal talent pipeline.

Key fintech staffing challenges that lead to talent shortages in the industry

1. Increased competition in the global market

The explosive growth and the booming technologies have resulted in stiff competition amongst fintech companies seeking top talents. Although technical giants or highly known organizations can quickly grab fintech professionals due to their brand image and reputation, medium-sized fintech businesses, small companies, and startups face the heat while securing expertise.

2. The absence of proper training and mentorship programs

Even after hiring talented fintech professionals, many companies fail to retain them due to the lack of training and development programs intended for their upskilling and reskilling. In the absence of continuous learning opportunities, workers do not get the necessary exposure to ongoing fintech industry trends and advancements, thereby feeling stagnant and seeking better opportunities.

3. Missing skill sets and tech expertise in candidates

It is high time that companies give up conventional hiring practices and norms and adopt a skill-focused hiring strategy to prioritize the skills and competencies of candidates over their qualifications and work experience. Besides that, if the fintech hiring process is not well-defined and refined, employers may end up engaging mis-hires in teams with poor skill sets and expertise. 

4. Disorganized and slow hiring process

While searching for extremely talented candidates with specialized expertise, fintech companies often make the hiring process lengthy and slow. For emerging job roles that require high technical expertise, companies feel that ordinary interview rounds might not be enough to judge candidates. This often causes job applicants to undergo several unplanned rounds of assessments and interviews, preventing them from applying for openings in small or medium-sized companies. 

5. Poor employee motivation and retention strategies

Considering the pace with which the fintech industry is evolving and the high level of competition it is facing, fintech employers must understand how important it is to retain talent. In the absence of competitive packages, perks and benefits, rewards and recognition, or training and upskilling opportunities, workers might not feel like staying in the company for long, ending up switching jobs.

Read also: IT Recruiting Challenges And Effective Solutions

Strategic workforce solutions to close the fintech talent supply gap

1. Opting for contingent staffing

To close the fintech talent supply gap, companies must undertake a strategic staffing approach, and one of the best ways to do so is through contingent staffing. Instead of offering full-time, permanent positions, fintech companies can go for temporary or short-term positions. Contingent workers can help small or medium-sized companies with the desired flexibility, reduce additional staffing costs, and at the same time, bring in specialized skills and tech expertise that are needed to master technologies such as AI, cryptocurrency, and many more that demonstrate a transformative impact on the fintech industry.

2. Following flexible and remote work norms

Ever since the world was hit by the COVID-19 pandemic, workers have started prioritizing remote work norms. Remote work proves to be beneficial not only for fintech employees but also for employers. While employees get the opportunity to maintain a good work-life balance, employers get the advantage of hiring employees across borders. This helps them in getting hold of diverse and versatile talents, thereby creative an inclusive workplace.

3. Switching to skill-based hiring 

Besides prioritizing flexibility in the workforce strategy, fintech companies must switch to skill-based hiring. As stated before, traditional hiring methods are concerned mainly with the formal educational qualifications, job-specific skills, and industry expertise of candidates. On the other hand, a skill-based hiring process enables employers to firmly assess and evaluate candidates based on their diverse skillsets and competencies. This also reduces chances of mis-hires.

4. Making the hiring process more efficient and streamlined

Though a typical interview process is not sufficient in judging the tech expertise and skills of fintech candidates, companies must consider designing and following a streamlined and timely hiring process. In other words, besides evaluating the skills and knowledge of candidates thoroughly through in-depth interviews and assessments, recruiters must ensure that the process does not take standardization and efficiency in terms of candidates’ experiences.

5. Improving employee motivation and retention strategies

To address the global fintech talent shortage and cope with the increasing competition for talent in the sector, companies need to ensure the implementation of proper employee motivation and retention strategies. In addition to offering competitive salary packages, fintech companies should focus on providing adequate training and skill development opportunities, benefits and perks, and rewards and recognition to keep their existing employees motivated and engaged, thereby boosting the retention rate.

6. Seeking help from a staffing agency

For a well-organized, time-efficient, and cost-efficient staffing process, companies need to consider partnering with a proficient staffing agency like Denken Solutions. With specialization in contingent staffing solutions, Denken Solutions possesses a broad range of fintech talents who might be the right fit for your company. We undertake a client-centric approach to analyze the client’s needs closely, thereby connecting them with top-grade fintech talents across the globe and helping them close the fintech talent supply gap with efficiency.

Conclusion

The ever-evolving business market alongside emerging technologies has created a major gap in the fintech talent supply chain in the industry, making it challenging for businesses to secure skilled talent and expertise. To close this fintech talent supply gap efficiently and effectively, companies need to opt for strategic workforce solutions by means of contingent staffing, skill-based hiring, flexible and remote work norms, streamlined hiring practices, and improved employee retention and motivation strategies. 
If you wish to secure top fintech talents for your business and close the fintech talent supply gap in your organization efficiently, connect with us today!