UK Fintech Resource Solutions: A Bright Future for Financial Services
“Technological innovations will be the heart of the banking industry for many years to come, and if banks do not make the most of it, the new players of FinTech and large technology companies will.” - David Brear, Think Different Group, ex-Head of UK banking for Gartner.
The future of financial services lies in FinTech. As the above quote alludes to, the inherent competitive and innovative nature of tech-first enterprises are driving the UK’s storied financial sector into the digital age, mostly by choice, but sometimes by necessity.
Understanding the UK's Position in the Global FinTech Industry
The digital revolution in financial services, fuelled by a lively financial start-up culture and a digitally engaged population, is creating unprecedented accessibility and efficiencies through FinTech and FinTech influenced services.
The UK stands out as a leader in nurturing an environment of financial innovation, funding, and regulatory exploration, typified in the creation and subsequent global adoption of the world’s first financial Regulatory Sandbox, which has been furthered through rapid access to capital and seed funding; an established foundation of existing financial services; and a vibrant and talented financial and technical workforce, underpinned by elite domestic education and training. But looming challenges are approaching, including international competition and the pandemic's effects.
Reasons for the Tech Skill Shortages in the UK’s FinTech Industry
The resource shortage in the UK's tech sector isn't due to a lack of developmental channels. Instead, it arises from the rapid demand for digital transformation fuelled by the pandemic. Emerging technologies like blockchain, AI, and automation have become mainstream, creating a high demand for skilled professionals.
This lack of tech skills is leading to delays in the transition of legacy enterprises to online platforms, the development of new technologies, and the training or reskilling of workers.
“66% of digital leaders in Britain say that lack of resource is responsible for slower digital transformation in their organisations”,
“Nearly two thirds of technology professionals believe employers need to be more open to the value of transferable skills from both inside and outside of the industry”,
“The Learning & Work Institute says the number of young people taking IT subjects at GCSE has dropped 40% since 2015”.
Tackling the Tech Skills Gap Head-On
The Learning & Work Institute's research reveals how we can develop more digitally engaged younger people. “Learning & Work Institute's research reveals that 70% of young people expect employers to invest in teaching them digital skills on the job…(and) there are four main reasons why the digital skills shortage is steadily climbing across the country:
A lack of clearly-defined job roles in certain fields,
A lack of understanding and guidance about potential career paths,
A lack of relatable role models,
A difficulty in making many technical professions seem appealing to young people, especially young women”.
To overcome these hurdles, it's crucial to nurture a community of mentors and inclusive working practices. This would help in clearly defining roles and guiding people towards potential career paths.
The Kalifa Report and FinTech Skills Development
The pathways for professionals to enter the FinTech industry are essential to the future of finance and continued growth of the financial services sector, as the Kalifa report highlights the (financial) sector’s direct GVA contribution to the economy is estimated to be £13.7bn by 2030, with job creation contributing to 70% of this.
The Kalifa report pinpoints the future success of FinTech on three opportunities: national embodiment of FinTech jobs and skills training; global trade and market reach; and sustainable, accessible recovery. To achieve these goals, it offers several recommendations including national connectivity, internationalism, and regulatory improvements.
A diagram of the fintech industry skill development.
The report emphasises the need for:
Domestic educatory support through internships and work experience.
Continued support of streamlined visa applications for foreign resource.
Retraining and upskilling the existing workforce.
Further research highlights what the FinTech industry needs to thrive, it needs experts in software engineering, blockchain, data analysis, cybersecurity, DevOps and Automation. All of which neatly parallel the pressures and requirements on either specialist tech industries, such as Logistics Tech, Health Tech, and Education Tech.
Attracting and Retaining Resource in the FinTech Sector
The pandemic ushered in a wave of professional soul-searching. No matter what you called it - the great resignation, the great reset - there was, and continues to be a global realignment of values in the wake of the pandemic. This has most acutely been felt in work, and many millions of people have taken a step back from their careers over the last 2 years and assessed what they need from their job, and what makes them happy.
Nurturing the Next Generation of Tech Resource
In a world where 71% of the UK public is using the services of at least one FinTech company, finding and keeping skilled labour is vital. To attract and retain high-calibre tech skills, it's essential to consider what drives people holistically, examining their needs, values, and happiness. Therefore, employers need to strike a balance between what people want, need, value, and what makes them happy at work.
What Modern Professionals Want from Their Jobs
As such, employers need to consider their employer value propositions, and company benefits when advertising any vacancies to help attract professionals. The benefits which are most attractive to the modern workforce are:
The New Norm: Remote and Hybrid Work: Appreciated across all industries due to increased flexibility,
Redefining Office Spaces: The trend leans towards smaller, local offices, replacing the old concept of large, commute-laden workplaces,
A Condensed Work Week: The introduction of a four-day work week signifies the end of the traditional five-day model, with higher productivity levels noted in a shorter time,
Ethical Alignment and Sustainable Actions: The younger generation is seeking employers whose values resonate with their own, striving for a reflection of themselves in their company's sustainability initiatives,
Tailored Performance Feedback: A shift towards highly personalised, relevant performance feedback systems has made the generic annual appraisal obsolete,
The Resurgence of Work-Life Balance: Since 2022, work-life equilibrium has taken precedence over salary considerations.
A diagram mapping out the benefits to attract and retain a robust UK FinTech workforce.
Looking Ahead - A Bright Future for Financial Services
The future of financial services in the UK seems promising, with the country swiftly adopting digital financial services. But enterprises must focus on their most valuable resource - their people. The UK FinTech sector's success rests heavily on how and where their limited access to resource can make the most impact. Only by focusing on people, can they continue to thrive in the fast-paced and competitive global FinTech landscape.