The global fintech industry is always changing. It’s a relatively new sector that’s evolving quickly and 2023 has thrown up some unique challenges – like the advent of generative AI programs like ChatGPT. But there have been plenty of other factors that affect the industry, too.
And all of them have had a substantial impact on hiring trends.
So we’ve had a good look at the last year and come up with some predictions as to what 2024 might have in store for jobs and recruitment in the fintech industry.
Globally we’re hoping to see a substantial increase in recruitment and growth from both established companies and newcomers on the scene. Increased regulation of crypto will help it to move further into the mainstream and there will be a renewed focus on sustainability and ESG.
Candidates with experience in areas like crypto and cybersecurity will be popular. AI engineers, in particular, will be heavily in demand as AI tech becomes increasingly integral to the function of fintech businesses.
Join us for a deep dive into our predictions for different regions. Why not check back in a year to see how right (or otherwise) we were…
United Kingdom and Europe
Consolidation phase
Fintech in the UK is currently navigating a consolidation phase which is having a significant impact on hiring levels. We know of several growth-focused companies that have encountered unexpected challenges that have led to a potential reshaping of their workforce. This consolidation period will continue into 2024 and will have considerable influence on the hiring strategies of the organisations affected.
Artificial intelligence (AI)
AI has been big news in 2023. We expect that in 2024 it will continue to be an area of growth as the technology becomes more mature and organisations integrate AI tools into their workflows. There will be an influx of firms going all-in on AI tech and increased funding for startups in the domain. This will lead to a continued increase in demand for employees with AI skills both as developers and as prompt engineers.
Return of large firms
In the final quarter of 2024 we saw a short-term halt in hiring by a significant number of large firms. These firms are poised to assertively re-enter the market in the first half of 2024 with a focus on upgrading talent and expanding teams in prosperous business areas. This reflects a renewed confidence in their prospects for growth.
Sales roles
In response to challenges in meeting sales targets we’re seeing several firms actively pursuing experienced sales professionals. Senior candidates with great track records will be particularly in demand in 2024, highlighting the importance of a robust sales force in business recovery.
Hybrid working
We anticipate a sharp shift in hybrid working arrangements in 2024, especially for client-facing positions. Expect many organisations to transition to a minimum of three to four days in the office to strike a productive balance between remote work and in-person team collaboration.
Emerging regions
As UK and Euro businesses work to establish new client bases and physical presence in emerging regions, overseas hiring will surge. Areas like the UAE, South America and Japan will see a sharp increase in recruitment.
Software development
Demand for software developers across tech stacks will remain high due to a shortage of experienced candidates with fintech market knowledge. This shortage will be particularly prevalent in companies that adopt new technologies like machine learning, AI and natural language processing (NLP).
Compliance and Regtech
As regulation in the banking and digital assets industry becomes more complex the demand for compliance specialists will increase. This increase in regulatory requirements will also lead to a surge in recruitment in the regulatory technology (regtech) subsector across all functions.
Strategic hiring
We expect to see more companies focusing on strategic investment and high-impact hires at every level rather than bulk recruitment. This emphasises the importance of a rigorous interview process and careful, considered decision-making in the hiring process.
Growth in 2024
The fintech sector saw a slowdown in 2023 attributed to rising interest rates and inflation. In 2024 there are positive signs that developments in AI, blockchain, regtech and payments sectors will drive market growth, despite the cautious approach adopted by many firms.
North America
North America is currently witnessing a substantial surge in fintech hiring, with large established firms leading the way. The demand for skilled professionals is high, reflecting a bullish outlook for the industry moving into 2024.
Sales in emerging markets
Sales hiring is particularly robust across emerging markets within the United States, Canada and Mexico. Fintech companies are keen to expand their market presence and sales teams.
Diverse trends
We are seeing growth across the North American fintech recruitment landscape, particularly in areas like payments, tokenisation, issuance in crypto, crypto-custody plays and solutions driven by private market and buy-side dynamics. This suggests that trends for 2024 will be diverse across the industry.
Outsourcing teams
An emerging strategy in 2023 that we expect to gain further traction in 2024 is the outsourcing of teams, in particular tech and engineering teams, to give a better return on investment (ROI). North American firms are increasingly outsourcing this kind of work to emerging markets in Southeast Asia and India.
General optimism
The general mood amongst fintechs in North America is one of cautious optimism, with plans in place to lift hiring freezes and expand from the beginning of 2024. This positive sentiment hints at a resilient and forward-looking fintech in the region next year.
Asia-Pacific (APAC)
Towards the end of 2023 APAC experienced a confident upswing in fintech hiring driven primarily by established firms keen to expand rather than ones reliant on continuous investment and funding.
Sales demand
As with other regions, the demand for sales professionals is prominent across emerging markets in APAC, including Australia and New Zealand (ANZ) and Japan. Fintech companies are proactively bolstering their sales forces to capitalise on growth opportunities in 2024.
Lifting of hiring freezes
Fintechs in APAC are not only planning to lift hiring freezes, but they’re also making growth plans for the beginning of 2024. This positive sentiment suggests a strong trajectory for the fintech sector in the region.
Growth trends
Growth trends in APAC are similar to those in North America. We’re expecting to see substantial growth from businesses in payments, tokenisation, crypto issuance, crypto-custody plays and solutions oriented towards private markets and buy-side dynamics.
Tech outsourcing
APAC firms are also considering outsourcing their tech and engineering teams in 2024 for improved efficiency. Emerging markets in Southeast Asia and India are identified as prime outsourcing destinations.
Looking forward to 2024
2023 has been a bumpy year but we’re expecting great things in 2024. All signs point to the fintech sector moving towards growth in the next twelve months, with companies globally making plans to remove hiring freezes and build towards growth.
Faqs
The increase in hiring demand for sales professionals in emerging markets within the Fintech sector reflects companies’ strategic focus on expanding their market presence and tapping into growth opportunities. Fintech firms operating in emerging markets often face unique challenges, such as building brand awareness, establishing partnerships with local financial institutions, and navigating regulatory landscapes. Hiring experienced sales professionals familiar with these markets enables companies to effectively penetrate new territories, forge strong relationships with potential clients, and drive revenue growth. Additionally, with the increasing adoption of digital financial services in emerging economies, there is a growing need for Fintech solutions tailored to these markets’ specific needs and preferences, further driving the demand for skilled sales professionals.
When considering outsourcing tech and engineering teams to emerging markets like Southeast Asia and India, Fintech companies weigh several factors to make informed decisions. These considerations typically include factors such as cost-effectiveness, access to a pool of skilled talent, time zone differences, cultural compatibility, and regulatory compliance. While outsourcing can offer benefits such as cost savings and scalability, companies must also address potential risks such as communication barriers, intellectual property protection, and data security concerns. To mitigate these risks, Fintech firms often conduct thorough due diligence on outsourcing partners, establish clear contractual agreements, implement robust security measures, and maintain regular communication channels to ensure alignment between the in-house and outsourced teams.
The general optimism among Fintech companies for growth in 2024 is fueled by several factors contributing to a positive outlook for the industry. These factors may include technological advancements, shifting consumer preferences towards digital financial services, favourable regulatory environments, and increasing investor interest. Additionally, the experiences and lessons learned from navigating challenges in 2023, such as the impact of global economic conditions and regulatory changes, have strengthened the resilience and adaptability of Fintech firms. While uncertainties, such as geopolitical tensions or economic volatility, may still exist, the overall sentiment suggests a forward-looking approach towards driving innovation, expanding market reach, and delivering value to customers in the coming year.
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