This article discusses:
- How resilient is the FinTech market?
- The most resilient areas in the FinTech industry
- The cyclical nature of the FinTech market
- Advice for candidates worries about the current market conditions
The collapse of Credit Suisse, SVB, FTX, Silvergate and Signature Bank, is enough to make anyone feel rather anxious about their future, especially if you work in financial services and tech. For those whose careers have only just begun, it may be more overwhelming given you have yet to experience any real turbulence in the industry. There is clearly some fragility across the market and with that comes a change in behaviour – we are seeing it already. Some companies become far more cautious in their approach to growth. Budgets and headcount can be more scrutinised. Candidates will approach the job market with more rigour and in general, decision-making can take longer. Uncertainty can cause people to stand still, to wait for others to make the first move in the hope that confidence slowly returns.
And it will!
FinTech Market Resilience
In the 11 years that I have been at EC1 Partners, I have witnessed these behavioural changes and my ultimate conclusion is that they never tend to last as long as people think. Yes, the market can lose confidence at times, but what’s unique about the FinTech market specifically is that in times of crisis, the smartest people look for innovative ways to ensure the same mistakes are not made again.
Technology within financial services is so diverse and far-reaching that somewhere, there will be opportunities. For example, the recent turbulence has only reinforced the need to create a more regulated and compliant sector, this in turn has an immediate positive impact on the RegTech space. The aftermath of the 2008 financial crisis saw the emergence of RegTech firms, and here we are 15 years later talking about the further growth of this area once again.
At its core, FinTech is utilised to improve and automate the delivery of financial services products, and so, companies and consumers want to better manage their operations, processes, and lives. The industry is always striving for excellence, and it would seem never have more entrepreneurs been doing their best to reinvent the wheel.
Are there any areas in the FinTech market that have been more affected than others?
One area for sure that will be impacted by recent events is the start-up world. The collapse of SVB will have spooked the start-up community. The venture debt market has been extremely buoyant over the last couple of years, but this will surely create a ripple effect and could have a negative if not devastating impact on the ecosystem. As behaviours change, investment slows and there may be less cash readily available for some of these disruptive FinTech’s looking to make their mark on the industry.
What needs to happen for the FinTech boom to happen again?
I was talking to a client recently about the current state of the market and his response was very straightforward. The markets are cyclical, and this is very much the nature of the beast. The markets go up and then come down, but it always seems to recover. Right now, we are witnessing a more challenging period, with that said, companies are still hiring, and some entrepreneurs and leaders remain determined. Confidence is low but that can change quickly.
What advice do you have for candidates who are feeling anxious about the current market?
Unfortunately, we may witness more layoffs. However, my advice to anyone job hunting in a crowded market is to do what you can to stay connected with your network. In a time of crisis, you will need to lean on people for support. Do what you can to meet with people face to face, even if only for an informal coffee. The more people you meet, the more information you gather and the more well-informed you become. Networking is key.
Be patient and resilient, however challenging that can be at times. There are always new companies emerging. Just because there isn’t a job for you today, doesn’t mean to say there won’t be one next week or next month. Update your LinkedIn profile, your CV, and your socials to make yourself as visible as possible. The more you can highlight your skills and your recent successes/achievements, the better. If your time out of the market does become prolonged – look at upskilling, there are plenty of courses which will enable you to broaden your skills and knowledge.
For additional advice or to have a confidential conversation, please contact me at jake@staging.ec1partners.com, or you can reach out to one of our FinTech specialists here.
Faqs
Recent market events are affecting different FinTech industry sectors in various ways. For instance, the collapse of certain companies like SVB may particularly impact the start-up community, causing ripple effects across the venture debt market. Other segments, such as RegTech, may experience growth opportunities due to increased focus on regulation and compliance following market turbulence.
Several factors are crucial to stimulating another boom in the FinTech market. Firstly, confidence needs to rebound among investors and stakeholders, leading to increased investment and innovation. Additionally, regulatory stability and clarity are essential to foster a conducive environment for FinTech growth. Moreover, technological advancements and new market niches can drive renewed interest and activity in the sector.
Beyond networking and profile updates, candidates can employ several strategies to enhance their resilience in the job market during uncertain times. They can focus on upskilling and continuous learning to remain competitive and adaptable to evolving industry demands. Moreover, leveraging online platforms for professional development, participating in industry events and forums, and seeking mentorship can also provide valuable support and opportunities for career advancement.
