{"id":2235,"date":"2020-02-04T02:37:05","date_gmt":"2020-02-04T02:37:05","guid":{"rendered":"http:\/\/kusuaks7\/?p=1840"},"modified":"2024-01-19T10:06:32","modified_gmt":"2024-01-19T10:06:32","slug":"s-there-actually-a-problem-with-hiring-fintech-it-talents","status":"publish","type":"post","link":"https:\/\/www.experfy.com\/blog\/fintech\/s-there-actually-a-problem-with-hiring-fintech-it-talents\/","title":{"rendered":"Is There Actually a Problem with Hiring Fintech IT Talents?"},"content":{"rendered":"\t\t
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\n\t\t\t\t\t\t\t\t\tIt\u2019s not news that Fintech is booming. On the one hand, millions of Fintech start-ups appear every year to offer innovative services, channels, and approaches. On the other hand, existing financial institutions and companies are improving the technology side of their business and expanding market reach.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tAs a result, the request for IT talents in Fintech is increasing exponentially. However, the labor market cannot keep pace with the demand, and Fintech is experiencing a growing shortage of software engineers. According to the Harvey Nash \/ KPMG\u00a0CIO Survey, in 2019 the shortage of data scientists, enterprise architects, cybersecurity experts, and other technology talents has reached an all-time high since 2008.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tLet\u2019s delve deeper into the issue, analyze its impact on the Fintech business, and determine how it can be resolved.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Should we bother about the IT talent shortage?<\/h2>\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tIn its economic outlook<\/a>, Deloitte claims that because the US is now close to full employment and slow workforce growth, it will eventually cause lower economic growth. The same concern can affect any particular area: an industry can hardly develop if it doesn\u2019t have enough workers to ensure growth.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tThe\u00a0<\/em>Fintech Talent Shortage: Risk of Inaction in 2020<\/em><\/a>\u00a0report states that Fintech may need more than 200,000 software engineers in 2020.<\/em>\u00a0The number is not so enormous as to raise doubts that all the positions will be filled. Moreover, the\u00a0US Department of Labor<\/a>\u00a0says that in 2018 almost five million people were employed in computer and information technology occupations. So let\u2019s breathe a sigh of relief that the IT talent shortage will not touch Fintech.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tOh no! It will.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tIn today\u2019s technology-based world, it\u2019s not easy to find an industry where IT experts are not required. Apart from Fintech, HealthTech, EdTech, AgriTech, and other technology areas, software engineers are also needed in manufacturing, transportation, mining, entertainment, etc. Wherever you look, you\u2019ll find technologies controlled by software and the need for IT talents.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tThe abovementioned report says that only 0.6 percent of open software engineering jobs are for Fintech. Does this mean a similar rate of IT talents will enter Fintech? Not so much.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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How can the IT talent shortage influence our business?<\/h2>\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tThe inability to quickly hire a seasoned software engineer affects the Fintech business in several ways.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tThe long hiring process is costly.<\/strong>\u00a0As a result, we don\u2019t allocate our resources to innovation and growth and miss opportunities. If the IT team is understaffed, the company can\u2019t make satisfactory progress in expanding functionality or solving problems that affect customers\u2019 loyalty. We get outcompeted by those who have found ways to build a strong software engineering team.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tBad hiring<\/strong>\u00a0puts our Fintech business at risk.<\/strong>\u00a0If we are extremely lucky, we can quickly hire an IT expert with the required skills and expertise. But, typically, hiring fast means compromising our needs and taking on anyone who is more or less suitable for the job. Generally, this is better than nothing, but not always.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tNews of\u00a0security breaches<\/a>\u00a0and\u00a0fines charged by regulators<\/a>\u00a0due to technical issues are reported now and again. Software developers with limited expertise in Fintech create insecure or noncompliant systems, which leads to penalties and sanctions imposed by SEC, FINRA, etc.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tSlow speed to market decreases the profit.\u00a0<\/strong>Customer expectations are evolving all the time. The more innovation we offer our customers, the more novelty and improvements they expect from us going forward. If we are unable to create a winning team quickly, we will either miss IT talents or suffer from poor performers. In both cases, we fail to rapidly launch new features, integrations, or updates. If we aren\u2019t first on the market, faster competitors can capture some of our expected new clients. In the worst-case scenario, even our existing customers may switch to our competitors. As a result, our profit doesn\u2019t increase as we estimated or even falls due to lost customers.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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How to deal with the lack of IT talents?<\/h2>\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tThe scarcity of engineering talents in the US forces Fintech companies to look for them abroad. Businesses try different options:\n