With technology becoming increasingly more vital in every aspect of modern society, the FinTech industry and its impact on consumer behaviour is evolving into one of the most interesting sectors to watch as we move into 2020.
Research conducted by LinkedIn found that FinTech start up Monzo was the most sought-after start-up to work for in 2018, with 4 other FinTech firms featuring in the top 10. The research, influenced by job searches and company views from the 27 million UK professionals registered on the platform, focused on employee growth, jobseeker interest and the level of professional engagement with the companies and their employees.
Alongside becoming more attractive to jobseekers, the Neobanks (banks that are 100% digital) are disrupting the financial market and changing consumer perceptions on modern banking. With start-ups like Revolut, Starling Bank and N26 giving the Big 4 a run for their money (quite literally), is it time for the traditional banks to re-evaluate their strategies to keep up to date with the needs of the modern consumer?
History of the Big 4
Barclays, HSBC, Lloyds and RBS have a long-standing history, with records of the banks dating back to as early as the 17th century. Although not all started as banks (Lloyds was originally a coffee shop!), they have developed over time to become the biggest banking establishments in the UK – with HSBC even being listed as the 7th largest bank worldwide. Today, the banks operate in countries across the world, employing over 500,000 people globally.
With an international presence and roughly 135,000,000 customers combined, the Big 4 were seemingly unstoppable. So, who are the companies that are challenging this reign?
The generation of Neobanks
Defined simply, a Neobank is a type of bank that targets customers directly and only operates digitally. The technology driven businesses focus less on traditional banking methods and more on implementing AI technologies to monitor spending rapidly and efficiently, offering smart advice and banking options at the disposal of one’s smart phone. Neobanks have adopted their methods to meet the needs of a world that is consistently looking for new ways to have everything at the touch of a button; on the move, and unaffected by time or location. The banks generate revenue through recurring fees from premium services and limit costs by adopting branchless business models.
While this style of banking is still relatively new, the banks have already had a huge impact on financial customers across Europe. Revolut and Monzo, being the largest of the modern disruptors, are already valued at over £2 billion combined and boast 10 million customers between them – despite both only being founded 5 years ago. Appealing to a modern market, Revolut allows its customers to make cash withdrawals in 120 countries worldwide and exchange money into 29 currencies free of charge. Monzo has been particularly successful at drawing in millennials, with young celebrity influencers such as Lily Allen publicly describing the bank as a “game changer.” Reigniting public interest in banking and revolutionising it to become an exciting experience again.
How these start-ups are influencing FinTech recruitment
The growth of these young banks is creating promising opportunities for those working in the FinTech sector. With low overheads and a customer base which is consistently growing, the banks are able invest spending into their recruitment strategy to meet the ever-increasing needs of their consumers. With this expanding customer base comes the need for more advanced technological infrastructure and support, thus creating more and more jobs for technology professionals around the world. Revolut specifically have invested heavily into their global recruitment efforts, launching a plan to recruit 3,500 staff globally thanks to a global deal with Visa. The start-up is looking to expand into 24 new countries internationally, as part a strategy to take itself from a travel money app to fully-fledged international bank, investing £4 million into recruitment for a new operational base in Porto to do so.
We are experiencing one of the biggest changes to the global consumer banking sector in recent history. With this comes exciting new employment opportunities and a recruitment environment set for disruption and competition. If current trends continue, there really has never been a better time to begin working in the FinTech sector.
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