The past two years have been unprecedented, with COVID-19 continuously disrupting the way we work and live. We see business processes becoming more digitally driven and talent needs changing rapidly. Today, online services are becoming commonplace with e-commerce supported by payments making almost anything available at any time.
While the pandemic may have caused many disruptions, it has also created new opportunities for Fintechs. According to a McKinsey report titled “The Next Normal Is Coming: Trends That Will Define 2021 and Beyond,” the industry has seen significant growth in the use of digital financial services and e-commerce. More so, an EY report titled “The Winds of Change”, indicates that total fintech funding volume reached $20.8 billion in June 2021, with 36% of funds raised in the last two years. years. India is the world’s 3rd largest market for start-ups with approx. 66,000 registered start-ups, 96 Unicorns and 11 Decacorns. 55 of the unicorns were born in the last 18 months.
To meet the demands of new business models, leaders must be agile and have a solid understanding of emerging technologies. After all, digital transformation is not only about technology, but also about talent. We are now seeing the talent sphere in fintech heating up with traditional financial institutions vying for the same tech talent in consumer tech, healthcare, wealth, insurance, and more. When we talk about digital transformation for these industries, we automatically think of the different challenges they face. face.
Retain top talent
Today, companies are still trying to find a balance between technological agility and talent acquisition. More recently, established fintech companies have experienced offer abandonment rates of up to 40% and more as employees are either retained by their current organization or obtain better opportunities elsewhere. This is mainly because the sector has seen a huge increase in new opportunities. Technology becomes the mainstay as business models and customers migrate to technology platforms. In addition, location flexibility, cultural adaptation and agile decision-making are factors that attract young talent today. We are also seeing executives who have moved to India in the last 5-10 years and are considering returning, adding to the gap between demand and supply which is currently estimated at around. 20%
Find fintech leaders with a holistic understanding of the business
With digital leading the way, established financial institutions and fintech companies seek leaders with a strong technology background. Unlike a few years ago, a financial institution today would want to hire an executive from Amazon or Google, especially since consumer technology leaders know the pros and cons of digitization and have experience in leading similar projects. As a result, more and more financial services companies are recruiting leaders with a holistic understanding of the convergence proposition for the entire business rather than just certain sub-areas.
If you take the case of the fintech industry, the roles can be divided into 3 major segments: business, product and technology. Ideally, a fintech would seek CEO/CXO-level leaders who sit at the intersection of business-tech or product-tech. These leaders have a better understanding of different aspects of the business and can therefore be more agile, adaptive and transformational for the current business environment.
Train the leaders of tomorrow
According to a recent report, there has been an increase in demand for additional workers as economies recover from covid-19. According to PwC’s 23rd Annual Global CEO Survey, only 17% of financial services CEOs say their organization has made significant progress in areas such as improving employee and executive knowledge of technology, which also includes the leaders of the C-suite.
To meet this growing demand, the fintech industry must step up its efforts to find long-term solutions to the problem of upskilling and reskilling talent. Industries are now realizing the importance of a comprehensive understanding of the business environment and how leaders with a 360 degree view can guide their organizations into the future.
Building a millennial culture
Company culture is quickly becoming a major priority for all organizations, including fintech. Millennials demand a focused response from their employers, but also demand a flexible working strategy in the workplace. Finding common ground is now more important than ever as fintechs continue to compete for young talent.
Attracting the best of these millennial workers is essential for the future of any business, but it’s especially important for the financial services sector, which already faces a severe talent shortage.
Addressing these talent challenges will not only help employees grow further in their organizations, but will also help fintechs increase their business efficiency and competitive position.
The opinions expressed above are those of the author.
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