Challenging Times Lead to Hiring Freeze for Half of Fintech Firms #
The current economic climate has led to half of all fintech firms freezing hiring in 2023, with over 4,000 fintech employees losing their jobs in the first half of 2022 alone. The impact of challenging financial times on the sector is further highlighted in a new report by leading technology experts Erlang Solutions.
The report, Exploring Fintech in 2023, examines the industry trends that are set to impact the year ahead. It also looks at the adoption of artificial intelligence (AI) in the sector, regulatory developments, and the growing importance of sustainability in company culture.
According to the report, 51% of fintech firms are expected to freeze hiring this year, with another 31% not ruling out the idea. Large and medium-sized firms are more likely to reduce staffing levels than smaller ones, with larger enterprises nearly twice as likely to close offices or stores and reduce software licenses and seats.
While these decisions can be challenging, they are necessary for businesses to remain competitive and thrive in a rapidly evolving landscape. By embracing new technologies and implementing innovative strategies, fintech businesses can not only survive but also grow and expand their reach.
The report also notes the importance of focusing on customers in the event of a deeper recession, particularly for small businesses. It includes thought leadership from industry figures such as Francesco Cesarini, founder and Technical Director at Erlang Solutions, Chris Skinner, author and speaker, and Irfan Khan, founder and CEO of tech provider mmob.
Francesco Cesarini commented on the challenges facing the industry, stating that while some fintech companies may not survive the threat of a global recession, fintech has supported consumers over the last few years of global challenges and will continue to do so. He emphasized the need for greater cooperation to create a diverse ecosystem that works for all, and hopes the report will spark those conversations.