Do you have a plan to communicate the potential of the Fintech industry to key candidates? Have you secured the talent you need to power your business?

1. RECRUITMENT
Fintech vs Traditional Banking
Making the transition in a
disruptive marketplace
Whitepaper
V1.0 - 19/08/2016

2. The financial technology industry (Fintech) isn’t new. The
finance sector has long been at the forefront of technological
developments, from the adoption of the telegraph in the 19th
century which allowed for the faster exchange of information, to
the early business computers such as LEO, designed to handle
accounts for a chain of coffee shops.
In recent years, however, the pace of Fintech development has accelerated rapidly. This has been
driven by new technologies including the cloud and mobile computing, and by customer demand.
Both individual and commercial clients require ever better, faster access to their accounts.
Technology giants such as Apple and Google have started to muscle into the financial space too,
with their own payment apps.
Investment in the Fintech sector tripled in 2015, making the sector worth more than £8 billion
globally and, according to figures from Accenture, much of that investment is in Europe. London has
become a hub for European Fintech with investments growing by over 130 per cent. By contrast,
Fintech investment in Silicon Valley grew by only 117 per cent.
INTRODUCTION

3. LONDON – THE FINTECH CAPITAL
Why has London become such a centre for this industry? In part, this is attributable to
the regulatory environment, with the UK having supportive policies and its Financial
Conduct Authority (FCA) - one of the most progressive regulatory bodies in the world
when it comes to Fintech.
Britain also has a deep pool of talent in this area. Couple this with the availability of
investment to allow startups to get off the ground, and strong demand from London’s
world-leading financial industry, and it’s easy to see why Fintech in the UK supports more
than 61,000 jobs and generates billions in revenue.
Of course the finance industry doesn’t stand still and Fintech development has kept the
UK’s financial services sector on the cutting edge when it comes to innovation. This has
led, in turn, to increased competition and choice in banking, helping customers and
businesses to gain access to better services.
Other Fintech markets
Clearly, London isn’t the only Fintech market. San Francisco’s Silicon Valley is home to a
number of major players in the field including PayPal and Lending Club. There are also a
large number of startups in the region encouraging new innovation.
New York is the largest Fintech centre in the USA, thanks to its proximity to the country’s
financial institutions. This means that there’s also a large pool of talent available to
businesses operating in this sector.

4. What is in no doubt is that, in recent years, Fintech has brought about some sweeping
changes to the world of banking and has had a major impact on global commerce. This is
partly because the technology makes it easier for banks to offer new services to their clients
and open up new revenue streams.
It’s also allowing new players to enter the market with innovative approaches. Witness the
growth of new areas including crowd funding for venture capital and peer-to-peer lending,
which are only made possible by Fintech that brings together lenders and borrowers in new
ways.
The result of all this is a change to the way in which we bank. The traditional banks are finding
that they’re losing customers to Fintech startups. This, in turn, means that they’re having to
look to new technology themselves in order to remain competitive in the marketplace. A spin-
off effect is that it’s becoming easier for customers to switch between banks as the process
becomes faster and smoother.
In the near future we’re likely to see further effects, such as the ability to manage accounts
from different banks via a single app, for example.
Fuelling the growth
As with any fast-growing sector, Fintech puts pressure on recruitment. In a competitive
market with a limited pool of talent, companies have to work hard to find and retain the right
people to drive their projects forward. Add to that a widespread shortage of key technical
skills and it’s clear that this could act as a brake on future developments.
Of course many industries are facing problems when it comes to finding the people with the
right skills, but Fintech presents some unique recruitment challenges. Candidates are often
attracted to smaller innovative startup companies rather than the more traditional large
financial institutions.
This is partly a matter of culture. Start-ups may well have a more relaxed attitude to comfort
factors such as dress code and flexible working, areas in which larger organisations find it
hard to compete. The fast pace of change may also mean more opportunities to learn on the
job and to achieve rapid advancement within the company. Also of course larger
organisations are likely to be slower to adopt new technologies as they don’t want to take
risks. At the very least this usually implies more time spent on testing and conducting trials.
DISRUPTING TRADITIONAL BANKING

5. Key skills
There are a wide range of skills in demand by Fintech companies. Roles such as data
scientists, mobile marketers, regulation and compliance professionals, software developers,
business analysts, and specialist start-up consultants are in demand across the board. As
such, these skills tend to be in short supply, especially in the more specialist technical
disciplines.
This shortage is particularly true in areas including security and digital currencies such as
Bitcoin. The Fintech industry has much in common with developing fields including big data
and the Internet of Things (IoT); areas that are developing fast and requiring a culture of
innovation and adaptability.
A shortage of skills can lead to something of a vicious circle. There aren’t enough experienced
people, but you can’t gain experience without working in the industry. This means recruiters
may have to be open to a more innovative approach.
Transitioning staff
The new Fintech sector is quite specific in its recruitment requirements. It’s therefore
important to understand how to encourage people to make the transition from traditional
banking or traditional IT.
The hard skills such as coding and project management are one thing, but the Fintech sector
also needs to attract people with the ability to question and challenge the status quo. In some
cases these abilities can make up for a lack of hard experience.
While some roles may be similar at a technical level, Fintech companies are looking for people
with a flexible approach who can work in a busy, challenging environment. Salary
expectations may initially be lower with a Fintech startup, but longer term the opportunity to
be at the cutting edge of technology can lead to greater career opportunities and ultimately
higher rewards.
DISRUPTING TRADITIONAL BANKING

6. Finding candidates
This intense competition for talent means that very often the best candidates for Fintech
roles are those who are not actively looking for a job. In order to find staff who are currently
working in another business, specialist recruitment support is likely to required, looking more
to headhunting and executive search techniques beyond simply advertising a role.
This is where businesses are likely to need to turn to a specialist recruitment company who
can provide in-depth knowledge of the marketplace and where to look for potential
candidates. They will also bring knowledge of the salaries and benefits required to attract
good candidates. A specialist can also help with the selection and screening required for
technical roles.
DISRUPTING TRADITIONAL BANKING

7. A specialist recruitment and headhunting agency, aap3 handles IT
recruitment globally but with special emphasis on the Fintech centres of
London, New York and San Francisco.
With industry experience stretching back to 1998, our team has a deep understanding of the
sector's specific recruitment needs and are consistently able to deliver the right candidates for
the role in question. We work with a number of major clients, many of whom have been on
board for a decade or more.
Because aap3 uses recruiters with technical knowledge, it has unrivalled understanding of the
market and the challenges inherent in finding the right staff.
Unrivalled experience
aap3 was one the first recruiters to recognise the importance of Fintech and was therefore
among the first in the field. This, in turn, means unrivalled industry connections with a great
contact book and excellent relationships with the best talent in the business.
Our team uses the latest, industry leading recruitment technology, in combination with
experienced headhunters, who are able to approach key individuals at specific organisations if
required. We always strive not just to deal with the recruitment process but to understand the
aims and objectives of its clients and to help them to grow their businesses.
Tomorrow’s talent
A skills shortage today is only going to worsen unless the industry can look to attracting the
people who will be its future. As part of its long-term commitment to the Fintech industry, aap3 is
partnering with leading universities across relevant courses in computer science, software
engineering, artificial intelligence and more.
This commitment to the future, together with the company’s existing connections and
resourcing activity, ensures that aap3 has access to one of the largest pools of technical talent in
the Fintech industry.
THE AAP3 DIFFERENCE
CONTACT US TODAY ON RECRUITMENT@AAP3.COM

8. RECRUITMENT
aap3recruitment.com