We all know that fintech growth has been challenged by a harder capital raising environment, a higher rate environment, and caution amongst prospective clients. The government estimates that there are circa 76,500 people working in the fintech industry across the UK, with Scotland and Wales seeing significant growth over the last few years. Scotland has seen headcount growth in the industry of 24% since 2021 taking the number of fintech workers to 10,500 according to their recent report. In Wales, there are 16,000 people employed in fintech and while I think industry headcount has probably been stable over the last year, at best, the UK has ambitious targets for job growth. The UK as a whole has target 105,500 employees in the industry by 2030 with Scotland alone wanting to increase their fintech workforce to 30,000 by 2032.

Here at Fram, after an admittedly quiet 2023 for our fintech practice, we’re seeing a real upturn in activity. In the post-pandemic boom, we saw almost every type of fintech experience growth, and again as we see recovery there isn’t one part of the industry standing out as a major hirer – firms move as a pack when confidence returns. However, as a function we have seen firms focusing on building up their sales teams. This mirrors the recovery play we’ve seen in TradFi, firms positioning themselves now for recovery by looking to grab market share in anticipation of a drop in rates. The capital raising environment seems to be easing too with investors moving more into “risk on” mode. Areas expected to grow of course include AI and Machine Learning (look at the recent valuations in the US), Buy Now Pay Later, SaaS, and Mobile Payments.

As confidence begins to resurface in the fintech sector, firms are clearly thinking about hiring again, mirroring the collective optimism for a recovery. However, amidst this resurgence, talent challenges will loom large, presenting recruitment firms and organisations alike with a unique set of hurdles to overcome. At Fram, we advocate for taking a strategic approach to talent acquisition, one that involves careful planning to identify the skills and resources firms need to thrive in a recovering environment. The time for this planning is before you need to hire people, just like the time to raise money is before you need it. This process should include developing a robust talent pipeline, building relationships with search firms and recruiters to access top-tier talent, and investing in additional training for existing teams to bridge skill gaps and drive innovation.

We can’t stress this enough: in the wake of adversity, confidence often comes in waves, influencing hiring patterns across the industry. As all firms participated in the post-pandemic boom, we now witness a collective shift towards recovery, with each sector of fintech contributing to the resurgence.

However, the challenge lies in synchronizing hiring efforts with market confidence, ensuring your organisation is well-positioned to attract talent. Now is the time to re-imagine how you want your firm to operate for the next five years. It's essential to ensure that rewards align with growth and also reward the loyalty of those who have stuck by you during the recent downturn. Fostering a culture of excellence and one that encourages commitment that drives sustainable success in the long run is essential.

In the wonderful book “Good to Great” by Jim Collins, getting the right people on the bus is said to be more important than the destination of the bus. In short, good people will figure it out.

In a recovering environment, the competition for top-tier talent intensifies, and firms need to differentiate themselves amidst a crowded landscape. As recruiters, we too are thinking about how we can differentiate ourselves to talent and clients should do the same to navigate this dynamic ecosystem. With some clients not having now hired for some time, their emphasis should shift towards strategic talent acquisition strategies that not only attract but also retain the best and brightest minds in fintech.

For more information on how we can help your business, please contact Simon Roderick at [email protected] or call 01525 864 372.