We live in revolutionary times, times when our way of conducting business, handling money and the way we bank is everchanging. Customers are constantly looking for the next extreme disruption that will reinvent their preferences in the financial sector. This paradigm shift led to the emergence of the FinTech sector. Fintech denotes a technology-based business that enables, collaborate or competes against traditional financial organizations. The fintech sector is also responsible for creating software and new processes to provide higher quality financial solutions.
The entire Fintech industry is continuously working towards meeting the customer’s expectation of constant innovation. Yet, there is also an obstacle in fintech innovation, lack of qualified talent associated with financial and tech skills. Stakeholders worldwide believe attracting and retaining suitable talents is one of the most prevalent challenges faced by FinTech companies.
Without the necessary talent, particularly within the niches of data and analytics, financial services technology companies cannot leverage their growth potential. The availability of quality talent is essential to keep the innovation and ambition fueled within the sector. But recruitment in FinTech can be tricky. As finding professionals who have expertise in both finance and technology can be a tall order.
This article will look into some key aspects of dealing with a skill shortage in the FinTech sector.
Acquiring the Right Talent
Shortage of any essential resource can increase the competitive nature of today’s ecosystem; here, the resource is human capital. And startups have to compete with both big corporations and the public sector to acquire applicants with the right expertise. According to a Wamda report, a bulk of the workforce prefers working for big corporations, followed by the public sector. Only a tiny percentage of professionals are willing to work with startups. The leading factors impacting employee preferences are better job security and higher pay in corporations and the public sector than startups. The only way to diminish this disparity is with increased collaborations between startups, corporations and the public sector.
Today, the demand for diverse, sophisticated and complex software systems is increasing, associated with the global shortage of technical talent. A Ryerson University study stated that the need for talent is growing faster than the educational capacity of institutions. There is a noticeable gap between technical experts and core finance professionals. Knowledge sharing between the two will play a critical role in skill development in the FinTech sector. Currently, many finance professionals are opting for online financial technology to stay ahead of the disruption. Furthermore, highly regarded educational institutions are also innovating to provide resources to the fintech industry. Innovative educational explications will help develop professionals best equipped for the FinTech sector.
Big corporations are posing a significant threat to startups by attracting a big portion of talented FinTech professionals. In contrast, big corporations are also responsible for developing a new generation of FinTech professionals. Many of these corporations invest significantly in innovation. The professionals working with these organizations find exposure to more recent models and the latest technology. This exposure will help them evolve into financial experts with a strong knowledge of the latest technology. The above mentioned Wamda report also stated that many FinTech entrepreneurs started their career at large corporations. So there is no denying the fact that big corporations play a vital role in developing new talent for the FinTech sector.
The Leaders and the lawmakers
When it comes to addressing the shortage of talent in the FinTech sector, an ambitious government can be a game-changer. By investing in skill development in the FinTech sector, the leaders of a country can lead us towards a FinTech revolution. In the last two years, lawmakers from different countries have introduced a series of regulatory measures in the sector. This development is a clear indication that many governments see FinTech as a priority. Initiatives taken by the leaders in the FinTech industry will also attract more talent to the sector.
The shortage of talent in the FinTech sector may be apparent, but it is a temporary situation prompted by the rapid growth in the industry. Fintech offers a variety of opportunities in the financial industry to its customers. With opportunities come obstacles, though; with the right mix of innovation, expertise and proactive government, any country can tackle this problem.
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