Why is retaining Gen Z talent in fintech becoming harder?
Last year, we shared how fintechs can attract Gen Z talent through diverse, purpose-driven cultures and strong employer branding. These remain vital, but attraction is only half the equation – retention is now the greater challenge. This piece explores how fintech leaders can bridge the culture gap to retain Gen Z talent.
As more Gen Z professionals join fintech organisations, leadership teams shaped by traditional, office-first models often struggle to align their culture and expectations with a generation that values flexibility, authenticity, and purpose.
This isn’t just a generational gap – it’s a strategic issue that, left unaddressed, risks long-term growth. In this article, we discuss:
- Key differences in Gen Z’s work mindset
- How leadership teams can adapt
- Aligning culture and behaviours
- Practical steps to close the gap
- What future-ready fintech leadership looks like
How does Gen Z’s work mindset differ?
Gen Z entered the workforce in a hybrid-first, post-COVID world where flexibility is an expectation, not a perk. They value transparency, inclusion, and well-being over fast promotions.
So what are their aspirations? Notably, 52% of Gen Z have no aspiration to middle management roles and 16% reject any role requiring supervision. This trend has been dubbed ‘conscious unbossing’ which aligns with the wider move toward flatter structures, especially as AI reshapes organisational structures.
This challenges the hierarchical, office-based norms still favoured by many leaders in larger institutions versus start-up fintechs. According to KPMG’s CEO Outlook 2024, 83% of CEOs expect a full return to the office within three years, a stance that risks alienating talent of all backgrounds. Pushback on return-to-office mandates is a common trend, particularly strongest in roles, such as tech teams, who can remain just as productive remotely while already coordinating in-office collaboration days.
At EC1 Partners, we see more leaders acknowledging that flexibility and authentic culture are now baseline expectations critical to retention. But the challenge requires leaders to remain open-minded and agile.
Why are some leadership teams struggling to adapt?
Many fintech leaders built careers on structured, office-based paths where tenure and titles were key. Gen Z’s priorities are different – they seek meaningful work from day one and often reject traditional leadership tracks.
With 70% viewing managerial roles as high-stress, low-reward, questions arise about who will step into future leadership roles. This isn’t entitlement, it’s a shift in how value and career satisfaction are measured, which is reflected in the rise of gig economy. When leadership models don’t evolve, friction and attrition follow.
How aligned are leadership teams on culture and behaviours?
While fintechs have advanced on DEI, flexibility, and transparency, Gen Z expects authenticity. They quickly spot when initiatives feel performative rather than embedded.
Research shows most leaders believe they are aligned on culture, yet only 18% strongly agree their teams consistently model core behaviours like integrity and clear communication.
The most effective way to be consistently authentic? Keeping conversations grounded in the work itself, whilst providing guidance, support, and accountability without overpromising from the get-go.
Operations and support teams also play a vital role in ensuring the employee experience matches the culture promoted externally. So close collaboration between commercial and back-office leaders from hiring-onboarding-post probation, and beyond will only strengthen the credibility and cohesion across internal departments.
What practical steps can bridge the gap?
Retention requires more than policy – it needs leadership that is credible, connected, and adaptable. Successful fintechs are:
- Aligning leadership behaviours so that culture commitments are consistently modelled across departments.
- Implementing reciprocal mentoring to foster two-way understanding between senior leaders and Gen Z talent.
- Hiring for potential with emphasis on adaptability, cultural contribution, and leadership capability.
- Offering responsibility with support opens potential for progression through stretch assignments and coaching without overloading the workload.
- Adapting management styles to individual motivators rather than generational stereotypes.
What does future-ready fintech leadership look like?
Future fintech leadership will remain multi-generational. Retention will depend on embracing mindset shifts, not just updating the policies. Leaders who listen as much as they lead will create cultures that bridge divides, drive innovation, and keep top talent engaged.
The gap between Gen Z and executives doesn’t have to be a barrier – it can be the catalyst for stronger, more inclusive leadership.
Conclusion: Closing the Gap & Building Rapport
Retention relies on leadership’s ability to foster genuine, two-way communication with Gen Z talent. Leaders who listen, adapt, and maintain transparency create the trust and engagement necessary to support long-term commitment.
With Gen Z expected to make up one-third of the global workforce, ongoing dialogue between leadership and Gen Z will bridge generational differences and help embed an authentic culture that supports both individuals and future business growth.
For more information on attracting and retaining Gen Z talent, email info@ec1partners.com or contact us here.
