The UK’s FinTech sector is booming. Despite a turbulent political and economic climate, with the threat of Brexit looming around the corner, there was
US$3.3bn in VE, PE and CVC investments into UK FinTech in 2018 alone, keeping 76,500 people employed in the sector. There are suggestions the number of Fintech firms in the UK will more than double by 2030, with the sector’s overwhelmingly positive response to the fourth industrial revolution cementing the UK’s position at the forefront of financial services globally. Combined with financial services’
£132 billion contribution to the UK economy, governing support for open banking and a growing customer acceptance and base, it looks like FinTech’s disruptive revolution will continue.
While the future looks bright, the complexity of scaling a FinTech business is challenging, especially when it comes to talent. There are several problems FinTechs may encounter in their bid to become stable and successful. Here’s what you need to navigate:
A small talent pool
As FinTech is a relatively new sector, its talent pool is fairly small, particularly when it comes to candidates with relevant industry experience and digital and technical skills. As such, the UK’s FinTech industry is currently heavily reliant on global talent, with 42% of the current market comprised of international talent. This means it’s essential for employers to be strategic and innovative in their search and selection process, expanding their traditional recruitment criteria to include different skillsets and requirements.
Inflexible corporate environments
Often the ‘hunting grounds’ for new talent are large corporate environments, which can lack adaptability and diversity. Such environments can breed highly skilled and experienced candidates, however the structure and rigidity of these organisations can mean there’s a lack of ability and attitude to succeed in more agile, fast-moving environments like FinTechs. Executives, who are accustomed to more structured environments, must learn to be more fluid in approach and adapt to their new surroundings, with pace. When recruiting and selecting, one must consider cultural alignment, fast growth experience and an ability to be absolutely "hands-on."
Positioning your brand and culture
The challenge for any new brand – and particularly a newly established FinTech – is about more than simply positioning your product and messaging. Once you talk the talk, you need to walk the walk and build your brand equity through your human capital and messaging. Questions to consider include what you do, why you do it, how you do it and who you do it for. You also need clarity around what you want your culture to be and how you can develop and manage this. As part of this, you’ll need to refine your employee value proposition to create a meaningful workplace where team members feel valued.
Scaling an industry with these complexities, plus compliance and regulatory issues, means the opportunity to learn from those that have ‘been there’ is compelling. A firm understanding of your FinTech’s DNA, who you are and what you offer is essential for future success in this dynamic and rapidly expanding sector.
Find out more about
FinTech at Hanover and how we can help you establish a skilled, experienced and innovative team to reach your business objectives.
