The last few years have witnessed quick, exponential growth in the Fintech industry.

Fintech players such as online banks, peer-to-peer (P2P) lending platforms, mobile payment and remittance firms, and robo-advisory and asset management firms, specialize in disruptive innovation that many experts believe democratizes and makes finance more accessible

The disruptive sector has challenged the dominance of traditional finance models like brick-and-mortar banks. Fintech has forever changed how we make payments, take out loans, and invest, and in the process, created new employment opportunities, all aimed at making a difference.

The Fintech Job Report by the Centre for Finance, Technology and Entrepreneurship (CTFE) gives an important understanding of the jobs offered in the fast-growing industry. It should prove insightful for students and job seekers, but more generally, those in the finance industry who want to understand the trends of future jobs.

A Summary of the Most Interesting Findings is as Follows:

1. In terms of market capitalization, the Fintech sector is now equivalent to 38% of the banking sector.
2. Venture Capital and Private Equity have injected over $200 Billion into Fintech startups in the last decade.
3. There are now 225 Fintech “Unicorns” in the world.
4. The Fintech industry currently employs 300,000 people.
5. The main Fintech companies are looking to hire 40,000 professionals.
6. Fintech jobs aren’t standardized yet.
7. There are 14 main job families in Fintech, which can be categorized as “Generic”, “Tech”, or “Finance.”
8. 70-90% of the non-generic jobs in Fintech are jobs that would normally be found in Tech firms.
9. Hard skills such as programming or data science are important but not sufficient.
10. Transferable skills to get into Fintech are more “Tech” than “Fin”.
11. Fintech and traditional finance jobs are likely to converge.

Let’s look at the stats in detail.

1 – In terms of market capitalization, the Fintech sector is now equivalent to 38% of the banking sector

Innovation is essential to survival, and the banking industry’s response is to hasten collaboration to avoid the risk of losing revenue.

The 100 biggest banks have a combined market cap of $7.1T, while the 100 biggest Fintech companies have a combined market cap of $2.8T.

This makes Fintech a major part of financial services and is an incredible feat considering banks have been around for hundreds of years vs only a decade for Fintech.

2 – Venture Capital and Private Equity have injected over $200B into Fintech startups in the last decade

This impressive number is the result of thousands of investment deals.

Although some investors might still be skeptical about the value of this relatively new sector, there is no denying the Fintech trends are showing rapid growth.

The adoption of Fintech services has grown rapidly in the last few years, which has prompted VC and Private Equity firms to invest in the sector.

3 – There are now 225 Fintech “Unicorns” in the world

A unicorn company is a private company with a valuation of over $1 billion.

Even though valuations aren’t always the best way to represent the impact of companies, it shows that the Fintech industry has hugely evolved from small startups to billion-dollar international companies.

Regarding geographical distribution, the US, the UK, China, and India are the undisputed leaders in Fintech.

4 – The Fintech industry currently employs 300,000 people

This ranges from more than 25,000 people for industry giants like PayPal down to 200 for the smallest startups.

With the global Fintech market expected to grow yearly, this number will only grow.

5 – The main Fintech companies are looking to hire 40,000 professionals

Any industry growth means a surge in demand for specialized jobs. Fintech companies are struggling to fill positions and are dealing with a chronic workforce shortage.

To fill this shortage, they are hiring aggressively. Attracting new employees will be critical for the industry’s long-term prospects.

6 – Fintech jobs are not standardized yet

Most Fintech jobs are offered by young and fast-growing startups, which create their organization and job structures as they grow.

As a result, job titles, requirements, and responsibilities tend to differ from one organization to the next.

7 – There are 14 main job families in Fintech, which can be categorized as “Generic”, “Tech” or “Finance”

Even with the lack of standardization, there are 14 main job families that typically fall into one of these three categories: 1.) Tech 2.) Finance 3.) Generic.

The 14 job families are Business Development, Customer Support, Core Business, Design, Data Science, Human Resources, Marketing & Communications, Engineering, Finance, Partnerships, IT & Operations, Product Management, Risk & Compliance, and Legal.

8 – 70 to 90% of the non-generic jobs in Fintech are jobs that would normally be found in Tech firms

Tech jobs are predominant in Fintech compared to Finance jobs.

9 – Hard skills such as programming or data science are important but not sufficient

A good understanding of the required skills is vital for candidates who want to apply, upskill or reskill.

While hard skills might be the first thing that pops into your mind when thinking about Fintech, mindset, soft skills and industry knowledge are equally important.

10 – Transferable skills to get into Fintech are more “Tech” than “Fin”

Although being knowledgeable in finance is helpful in Fintech, it’s not the main requirement for Fintech companies.

Digital skills, an entrepreneur mindset, and Fintech understanding tend to be more sought-after skills by recruiters.

11 – Fintech and traditional finance jobs are likely to converge

Despite the fact that Fintech jobs differ from traditional finance, the convergence of both sectors into digital finance will likely lead to a convergence of job roles too.

Defining Fintech

The term Fintech gets tossed around a lot, with many interpretations out there depending on the person.

As the term suggests, Fintech is a clever mashup of the words “finance” and “technology”. Artificial Intelligence, Blockchain, Cloud Computing, and Big Data are considered the “ABCD” of Fintech.

Simply put, Fintech is an umbrella term that encompasses all organisations that employ and provide newly developed digital technologies in the banking and financial services industries.

Why Fintech Is the Industry You Should Be In

Fintech combines two of the largest industries in their own right – Finance and Technology. Both have a real need for specialist employees across wide-ranging areas.

Combining the two industries opens a wealth of career opportunities, which is why now is the perfect time to study Fintech and develop the ability to meet these shortages.

The salary you could achieve as a Fintech financial analyst, cybersecurity specialist, or software engineer is well worth the investment in your education.

Growth of Fintech Jobs

The coronavirus pandemic supported the popularity and growth of Fintech, encouraging more consumers to buy online, and forcing businesses to adopt new digital models. Those same consumers also discovered they could demand more from financial institutions in terms of customer service and technological advances.

As Fintech continues to gain momentum, there’s a significant demand for professionals with specific Fintech skills.

In addition, governments and educational institutions are recognising the importance of Fintech. They’re investing in programs to support the growth of the industry and the development of the necessary skills. As a result, Fintech jobs are expected to continue to grow and provide opportunities for those with the right skills and knowledge.

With so many job opportunities, Fintech is undeniably a sector worth exploring.

Exciting Work Environment

Being on the cutting edge of innovation means the Fintech industry offers a fast-paced, challenging work environment.

Roles within Fintech require the ability to forward think and recognize what the market needs. So, if you thrive on adventure and have an unwavering passion for finding smart technological solutions to consumer problems, a career in Fintech could be just what you’re looking for!

To maximize your opportunities in the industry, ensure you have the right skills and knowledge.

Another way you can maximize your career potential is to widen the base of companies you consider. Working for a startup is no longer considered ‘a risky move’. Thanks to advancements in tech, startups are more common and viable as a strategic career move.

In fact, if you take the bold step to join the fast-moving Fintech industry, a startup may end up providing the best opportunities.

Career Paths, Skills Required, and Salary Ranges

Fintech is a unique space with so many avenues for growth and change. There are various career possibilities, and salary expectations for most of them are strong.

If you wish to pursue a career in this field, you will need strong experience in advanced mathematical/quantitative skills and programming languages. Add to that logical and analytical thinking skills, and you’ll have the edge over other candidates.

So, what are some of these in-demand and well-paying jobs in the Fintech industry?

Whether you decide to work for a new startup or a big bank, the roles available to you include:

1. Software developers and engineers: Software developers and engineers have a key role when it comes to bringing new technology to life. Fintech companies require professionals to design, develop and maintain financial technology apps, including mobile apps, online platforms, and data analytics tools. As a developer, you can specialize in big data, blockchain, or AI. Hard skills required include knowledge of programming languages (Python, CSS, JavaScript, etc.), Databases and infrastructures, Cloud platforms, and APIs.
2. Data analysts: Data analytics is an essential part of Fintech. Professionals in this field are responsible for collecting and analyzing raw data and turning it into valuable insights to help corporations make data-driven decisions.
3. Financial analysts: Financial analysts compile and analyze financial information to help companies become more profitable. To perform this role, you’ll need a qualification in accounting or finance.
4. UI/IX designers: User Interface (UI) and User Experience (UX) designers determine how apps look and function from customers’ perspectives. To maximize user adoption, for instance, apps must be easy to use and navigate.
5. Data scientists: With the rise of Machine Learning, Deep Learning, and Big Data, the demand for data scientists is also on the rise. Your job will involve writing and executing complex financial models and making sense of massive amounts of digital info. Skills required include database operations, programming languages, statistics, cloud platforms, and data visualization tools.
6. Product managers: Product managers are responsible for managing the development and launch of new Fintech products, including mobile payments, online banking, and investment platforms. Skills required include product testing methodologies, customer research methodologies, product analytics, data analytics, and data science for risk and compliance and data.
7. Digital Marketers: Fintech companies need digital marketing professionals to promote their products and services, reach new customers, and build brand awareness. Skills required include writing and copywriting skills, web analytics, the ability to write and create for multiple channels, Adobe Creative Suite, and marketing automation.
8. Cybersecurity specialists: Fintech companies handle a lot of sensitive customer data they need to safeguard. With the increasing threat of cyber-attacks, Fintech companies need cybersecurity professionals to ensure that their customer’s financial data doesn’t end up in the hands of malicious hackers.
9. Compliance and Risk Managers: Fintech companies need professionals with expertise in compliance and risk management to ensure they comply with regulations and manage risks effectively. Skills required include AML legislation + regulation, Database operations, and Finance operations.
10. Business Development Managers: Fintech companies require business development professionals to oversee the business’s growth at every stage, from development to launch and beyond. Business development managers are responsible for establishing partnerships with financial institutions, acquiring new customers, and expanding into new markets. Skills required include Technical skills for software such as CRM and Collaboration software.

Overall, Fintech offers diverse career opportunities across different industries and functional areas. These are only a selection of roles available – the industry is expected to continue growing in the coming years, offering even more opportunities for professionals.

Fintech’s Salaries

Specific salaries in the Fintech industry vary depending on your role, but generally, the average annual pay for a Fintech is $123,495.

Keep in mind that this is an average taken from a relatively small pool of roles.

Depending on your specialization, there’s a good chance you could earn more than the average. Fintech job roles that require a more technical skillset could attract an annual salary range of up to $180,000.

The sky is the limit when it comes to the salary you could earn in such an emerging industry.

What is Driving the Increase in Fintech Jobs?

Several factors are driving the increase in Fintech jobs, including the increasing adoption of digital technologies in finance, the rise of alternative lending platforms, and the growing demand for mobile payments and banking services.

1. Digital Transformation: The increasing digitization of financial services has created a need for professionals with specialized skills in areas such as AI, data analysis, blockchain, and cybersecurity.
2. Regulatory Changes: The regulatory environment for financial services is evolving rapidly, creating new opportunities for professionals with expertise in compliance, risk management, and regulatory affairs.
3. Demand for Innovative Financial Products: The rise of Fintech startups and their innovative financial products has created new job opportunities in areas such as product development, marketing, and customer service.
4. Increased Consumer Adoption: As consumers increasingly adopt digital financial services, there is a growing need for professionals with skills in user experience design, digital marketing, and customer support.
5. Growing Investment in Fintech: The growing investment in Fintech companies has created a need for professionals with skills in venture capital, private equity, and investment banking.

Overall, the increasing demand for digital financial services and the growing importance of Fintech in the financial industry are driving the growth of Fintech jobs.

Key Takeaway: New replaces old. It is a tale as old as time. With experts expecting the growth of Fintech to continue, there are no signs of the industry slowing down anytime soon. Demand and supply still favor the skilled applicant, meaning there’s a wealth of attractive options for people who want to future-proof their careers.

Methodology: The study was conducted by CTFE and targeted small and early-stage Fintech startups, established startups, and large Fintech payment companies. In instances when they were unable to find any accurate public data, they reached out to company reps and acquired the necessary information this way. The preliminary analysis found over 40,000 job openings in the top 225 Fintech companies from which they extracted the most common roles in the industry. They divided the roles into 14 job families and further classified them into three distinct categories: Technology, Finance, and Generic.