Given the shortage of fintech talent, companies should look towards hiring from diverse backgrounds outside of the industry.

The former chairman of the Federal Reserve, Paul Volcker, once remarked that the ATM was the only useful innovation in finance. But that was more than a decade ago, and the finance industry has seen rapid transformation since then.

Covid was one of the catalysts. The forced reduction of person-to-person interactions accelerated a rethink of traditional financial and banking solutions, leading to the emergence of new technologies and business models.

Long-established banks now face competition from payment platforms such as Ant Group and Stripe, and have had to reinvent themselves to stay in the game. In the meantime, consumers have begun to expect and demand more, with 63 per cent worldwide now using Fintech services, according to the Centre for Finance, Technology and Entrepreneurship (CFTE).

The Skills Gap

The changes experienced by the financial services industry in the last decade have been more significant than those in the previous half century combined. The result is a demand for talent that has increased exponentially – but this appears to be matched by only a small pool of candidates.

Given the short history of the fintech industry, the ideal candidate may not yet exist. However, businesses still need to hire, and this is where a misperception perpetuates the problem: both job seekers and employers assume incorrectly that hard tech skills are the pre-requisite for entry.

Research conducted by the CFTE, consisting of feedback from fintech CEOs and senior leaders, shows that hard skills make up only one part of the puzzle. More valued are soft skills for good communication and team play, and a mindset that reflects resilience and adaptability.

"Given the dynamic landscape of the fintech industry, the role of human capital is fundamental,” says Evelyn Chow, Managing Director of DecodeHR. “One of the greatest challenges lies not only in finding the right talent, but also in nurturing and motivating a workforce that is innovative, adaptable, and can seamlessly integrate with the ever-changing demands of this sector. Retaining talent remains one of the biggest challenges in this industry as the demand far outstrips supply. As such, the right level and structure of compensation is crucial.”

Transferable skills

In the early stages, businesses will first need to source talent from outside and consider new hires from a variety of different backgrounds.

GoRemotely, a job-seeking platform that specialises in remote working positions, estimates that up to 70 per cent of the workforce is actively looking for a career change. According to Robert Walters, 62 per cent of financial services professionals would be willing to switch jobs.

These candidates may not yet have work experience specific to fintech demands, but some personality attributes and skill sets can be transferable across a range of job roles.

A growth mindset: These candidates react quickly in a fast-changing environment. They think like entrepreneurs and seek to challenge the status quo to drive positive change.
Effective communication: The ability to break down complex industry concepts and convey them effectively to stakeholders is viewed as an asset. This was cited as a critical soft skill during roundtable discussions at the Singapore Fintech Festival in 2022.
Enterprise thinking: Fintech companies are comprised of multiple interconnected systems and processes. Individuals who are able to understand how these components come together to create the big picture outcome are highly valued.
Marketing sense: Being able to communicate the value of fintech products is particularly important for customer attraction and retention, especially in the face of keen industry competition.
Compliance values: With regulatory and ethical practices pertaining to fintech constantly evolving, fintech professionals are valued for their ability to understand compliance frameworks and how to work within the guidelines.

Evelyn adds: “Technical skills alone are not enough. Soft skills, such as agility, effective communication, and problem-solving abilities, will enable you to stand out and thrive in the competitive fintech environment."

The pool of potential fintech talent will grow in size as the industry matures. For now, however, the keen competition for talent can be eased if companies recognise that some skills are transferable and can remain relevant even in the fintech landscape.

"From artificial intelligence and cybersecurity to data analytics and blockchain, the skill sets required are as diverse as the industry itself. Those who are keen to enter the industry should have a good foundation in finance or technology, and familiarise themselves with fintech platforms and tools, as well as regulatory frameworks,” says Evelyn.

“We have witnessed the successful crossover of individuals to the fintech sector who made the decision to pursue relevant post-graduation qualifications. We have also observed that networking with professionals in the fintech space and pursuing relevant certifications can also enhance your credibility and open the door to the right opportunities.”

Ultimately, expanding the search outward to a range of candidates from diverse industries and backgrounds might lead to faster growth and opportunity.

Find out the list of in-demand skills in the FinTech industry below.

Download list