The UK banking industry is experiencing a wave of innovation, spearheaded by fintechs who are digitising core payment services traditionally provided by banks. Digital banking has now shifted from being an 'option' to a 'requirement' in order to meet the demands of the technology-savvy millennial generation. As the sector experiences a pivotal digital shift, what does this mean for hiring?
Robert Walters has partnered with VacancySoft to deliver 'The UK Fintech Revolution', a market report measuring the profound impact of fintechs on the banking industry, with a specific focus on the evolving hiring patterns of both fintechs and traditional banks.
The report explores:
- The trajectory of fintech over the past 5 years
- The influence of Venture Capitalists (VC) on industry growth
- The impact of fintech on banking
- Key recruitment trends in fintech including role 'hotspots'
- The impact of Brexit on salaries
- Growth profiles of leading UK fintech unicorns
Download the report to see the key findings.
Banking is going digital
With fintechs digitising processes such as payments, P2P finance and fund transfers, coupled with fintechs such as Revolut beginning to secure EU banking licenses (enabling them to launch current accounts), banks and fintech businesses will now lie in direct competition.
Digital flair and customer-centric services will be paramount for both parties to continue to capitalise on their revenue streams.
London is becoming a fintech leader
All the data points towards London continuing on it's fast-track trajectory to becoming a global hub for fintech, showing signs of potential to threaten San Francisco's historic dominance of the market. There was a 51% increase of e-money firms in the UK between 2017-18 and the UK now houses 7 of the 29 fintech unicorns globally. Venture Capitalist (VC) funding will continue to push this growth - almost 40% of European VC funding goes directly to London.
As London continues to lead in generating technology talent, we're seeing a rebalancing in terms of the emergence of regional tech hubs in Manchester, Birmingham and Leeds.
Recruitment has reached an all-time high
With both banks and fintech businesses pouring significant resource into developing their digital offerings, recruitment into fintech is soaring. Fintech created 61% more vacancies in 2018 compared to 2017, making it the fastest growing sector in the London economy. However, talent shortages are beginning to stunt growth so businesses will need to develop strong recruitment campaigns in order to secure the best talent.
Technology dominates hiring activity
Technology recruitment in fintech grew to 30% in 2018, with this hiring activity centred around software developers who remain in the highest demand across the UK. With such high demand for this area across both fintech and banking, Java developers can demand a starting salary of up to £60,000 in London, while software developers can demand up to £55,000.
The fintech revolution is being felt regionally
The fintech sector created 18% more vacancies in 2018, proving that growth isn't solely concentrated in the capital. As London continues to lead in generating technology talent, we're seeing a rebalancing in terms of the emergence of regional tech hubs in Manchester, Birmingham and Leeds.
Brexit could limit sector growth
Brexit and the uncertainties associated with it puts fintech hiring into doubt, particularly for the technology sector. Currently, a quarter of technology professionals come from overseas - a hard-border Brexit outcome could displace this talent and shrink the hiring pools of fintechs and banks significantly.