Fintech and banktech face shortage of skilled talent

Report says firms that do not have the right-skilled talent could run the risk of losing out on new biz opportunities

by S BIRRUNTHA/ pic credit: imoney

THE financial technology (fintech) and banking technology (banktech) sectors lack right-skilled professionals that could propel their growth, Randstad Malaysia revealed in its 2020 Outlook and Salary Snapshot.

The report said fintech and banktech firms today are racing neck-toneck to build tech teams and enhance their workforce capabilities to meet business demands.

However, it said companies that do not have the right-skilled talent could run the risk of losing out on new business opportunities and prevent the sectors’ overall growth.

“Employers in fintech and banktech would need to keep an open mind when considering candidates from other sectors, such as technology or e-commerce, as they may not have the relevant product knowledge and their customer profiles would also tend to differ largely.

“Instead, these candidates can bring with them an outside-in perspective and introduce new ideas on driving efficiency and change to both secure and retain customers,” it said.

The report also added that most employers these days tend to take a longer-term view on upskilling these talents and get them up to speed through product training once they have come on board.

In Malaysia, Randstad expects that the fintech industry will grow significantly over the next few years, which will undoubtedly lead to more hiring.

However, the decision by job candidates to move into this relatively new industry was found difficult, despite the strong interest.

“To meet acute shortfall in skills and high demand for talent, fintech firms must offer a robust onboarding plan, as well as adequate training and development programmes to help their new hires better adjust to the new environment.

“These could include on-the-job training, mentorship programmes and even buddy systems,” it said.

Meanwhile, the remuneration package for fintech candidates is similar to any other traditional financial institutions, which is based on job titles, job grades and fixed salary bands.

On their salary outlook, Randstad said fintech firms tend to be more progressive in the way they remunerate talent.

“A number of them are willing to pay the market rate, plus the perceived value they feel the tech candidates can bring to the company.

“Some senior-level professionals may even receive equity as part of their remuneration packages, especially if they are highly pursued by young start-ups.

“This would also increase their loyalty to the company as business success would often translate to higher pay,” it said.

Randstad also highlighted that middle-level professionals are more likely to make the leap to join fintech companies, especially if they are not promised a promotion or a substantial salary hike in the next 12 months.

“Fintech firms, especially young start-ups and firms with large venture capital investments, are also more likely to reward high performers with fast-tracked promotions in an effort to retain them,” it added.