Jobs in the UK's fintech sector have grown by 61% in the last year while demand for skilled workers has seen salaries rise by as much as 25% according to a recently published report.
The study, produced by UK recruitment firm Robert Walters and market analysis company Vancancy Soft, shows that the London continues to be the top city in Europe in terms of attracting venture capital for fintech startups, accounting for 39% of all venture capital, followed by Berlin (21%), Paris (18%), Stockholm (5%) and Barcelona (4%).
The report - titled The UK Fintech Revolution 2019 Salary Survey - noted a marked difference (20%) in the salaries offered to those fintechs with VC backing and those without such funding, leading Robert Walters director Danika James to state that VC funding is acting as a 'game-changer' when it comes to attrractive job offers.
“As an increasing number of fintechs gain backing, capital is becoming less of a constraint and so firms can afford to offer inflated salaries in order to secure the best talent,” said James.
Another finding from the survey is that non-IT jobs have become a greater focus for fintechs. Whereas IT jobs accounted for half of the fintech hiring market in 2017, this figure dropped by 7% in 2018.
Robert Walters puts this trend down to the rapid growth of fintech businesses which has stimulated the need for a wider range of skills. The biggest year on year growth has been in compliance (85%), followed by marketing (63%), sales (23%) and development and engineering (16%).
“It is no surprise to see compliance as the largest growth area this year," said James Murray, director, financial services. "The spotlight on fintechs has meant that they are now having to address concerns from regulatory bodies and prove that they are just as capable of being compliant as the big banks. With relatively unestablished compliance departments, we can expect to see rapid hiring in this area for the rest of this year.
“Over the next 12 months, we can expect to see the greatest salary movement in the high-demand skills areas, where skills shortages are experienced the most acutely. If fintech businesses are to effectively compete against financial services giants with significantly more capital, they will need to ensure their employment packages are premium, factoring in progression, work-life balance and a positive business culture, on top of a healthy salary," said Murray.