A shortage of technology and finance skills could hamper the growth of the UK FinTech sector, according to new research from Experis.

With a record-breaking $2.9 billion invested into UK FinTech in the first half of 2019, its talent requirements are growing. In the past two years alone, the proportion of FinTech vacancies for IT professionals has increased by almost two thirds.

The professional resourcing firm’s research showed that in the three months ending September 2019, FinTech vacancies accounted for 3.03 per cent of all IT vacancies, versus 1.84 per cent for the same period in 2017.

However, thanks to widespread digitalisation within the financial services sector, FinTechs are having to compete for tech skills with established organisations in this space, many of whom have deep pockets.

Permanent salaries attached to tech vacancies rose by over four per cent this year, compared to last, with notable increases for data architects, whose salaries rose by 10.2 per cent on average to £71,717 per annum, developers (up 13.7 per cent to £47,516 a year) and analysts (up 15.5 per cent to £40,092).

Whilst in the tech sector salaries are more stable, vacancies for specific skills continue to multiply, according to the Experis analysis. The number of developers required increased by almost two per cent this year compared to last, whilst demand for engineers increased over three per cent.

The report suggested that this has galvanised incumbent firms into game of salary one-upmanship. Last year firms in the sector offered, on average, over nine per cent more for a developer and almost five per cent more for an engineer, compared to their technology counterparts.

Martin Ewings, director of specialist markets at Experis, commented: “Despite being built on technology, the UK FinTech sector will thrive or die based on its ability to attract human resources.

“Established industry players may have more visible muscle but, without many legacy issues, FinTechs are well-placed to create powerful employee propositions.”

Whilst the growing salaries offered for tech skills by financial services organisations are attractive, hiring for finance roles with the sector has fallen by 18.4 per cent over the last year, dropping quarter-on-quarter since October 2018.
Ewings concluded: “In the long-term, the availability of software and widespread automation are changing the skillsets required, while in the short-term Brexit and low-interest rates are contributing to uncertainty and squeezed margins.

“Nonetheless, this presents a huge opportunity for FinTech firms, who, with the right mix of talent strategies, can highlight why the FinTech sector is an attractive place to work.”

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