It’s hard to find an industry that technology hasn’t touched. The fingerprints of the IT field are everywhere, ingraining tech pros within sectors such as healthcare, manufacturing, aerospace, and telecommunications. The finance industry is no different, with the rise of Financial Technology (FinTech), short for financial technology, making a dramatic impact. As the very fabric of financial institutions changes and becomes increasingly reliant on technological advancement, it is affecting tech hiring everywhere.
FinTech Investments are Soaring
Understanding the full gravity of FinTech’s impact means taking a look at just how massive its role has become. Capital is required to leverage the power of technology, and for the financial industry, that’s its specialty. In 2017 alone, $27.4 billion was invested in FinTech globally, a full $5 billion more than just two years before. In fact, from 2010 to 2017 a whopping $100 billion was invested across the world. It’s clear that interest in FinTech is both incredibly large and still growing rapidly, with 54% of those investments going into startups. That indicates an excitement for the future as banks and investment firms look for the innovative people and novel ideas that can help trailblaze a new way forward.
Blockchain Takes the Spotlight
Within FinTech, blockchain technology has captured the headlines and attention of finance leaders everywhere. First gaining prominence as the muscle behind Bitcoin, blockchain is much more than what makes cryptocurrency possible. As a digital ledger for the modern age, it provides a real-time avenue for transactions that are made extremely secure through a new way of validation.
This year spending on blockchain is expected to be $2.1 billion, twice that of 2017 and on pace to hit $9.2 billion by 2021. Investment here will grow because the technology has now moved from testing phases into the real-world, with two major banks completing a $30 million transaction using blockchain in March 2018. Considering that several other global banks are poised to roll out blockchain-backed technology to their customers, the spotlight will continue to shine brighter.
Consumers are Driving Change
Financial technology has become an area of such focus because it offers benefits to both financial institutions looking to streamline their internal operations and customers who enjoy the convenience of technology. As consumer habits change, the industries that serve them are forced to adapt if they want to remain successful. People are using their computers, phones, and tablets to manage their personal finances like never before, with the number of digitally-active consumers using FinTech products doubling every 12 months.
Simply put, consumers will go to the banks and investment firms that allow them to conduct transactions in an effortless fashion. Studies prove that when people cannot get the technology they want to use out of their current bank, they turn to third-party apps that can fulfill their banking needs. It’s an alarming trend for banks, and a chief reason behind their frantic push to invest in FinTech. After all, if you build it, they will come.
FinTech Is Changing Hiring in IT
By definition, FinTech is specific to the finance industry, but its impact is impossible for IT hiring managers in other industries to ignore. The gravity of FinTech activity is changing the tech talent pool dramatically. As financial institutions invest more money into technology, they are hiring tech pros in droves. Fortune 100 behemoth Goldman Sachs is just one example, employing 9,000 people in its tech division which makes up 25% of its total employee base.
The flurry of activity surrounding FinTech is exciting and will pay dividends for many in the long run, but there’s no doubt it will first turn the existing gap between available tech talent and open IT roles into a chasm. Those seeking an IT pro for any open position will be faced with a continued uphill battle that shows no signs of going away. As a result, hiring managers looking to stay competitive for talent often turn to an experienced staffing firm like ATR, bypassing the speedbumps that FinTech puts in front of them.
Looking for exceptional IT talent who can harness the power of new technology regardless of your industry? We can help. Contact us today to learn how.