Andrew Mitchell, VP Development and Infrastructure Support at JCB International, writes that the UK will be struggling to maintain its position as a global Fintech leader, and the nation’s professionals are concerned that there may be challenges accessing engineering, product, and financial services after Brexit.
Mitchell notes that the Fintech Founders survey of 50 industry participants, released in August 2019, revealed that two-thirds of respondents believe recruitment will be the biggest challenge.
The survey indicates what might be at stake in terms of prestige given that the UK is currently the world’s leader in scaleup investment into fintech companies.
Approximately 63% of those surveyed confirmed that the UK is a world leader in the Fintech sector, however, only one third, or 33%, noted that they believe the country will retain its dominant position in the next five years.
The survey’s responses suggested that after Brexit, those who have the relevant skills should be allowed to come to the UK in order to work with British companies.
Mitchell, who leads a reg-tech oriented team at JCB International, points out:
“Without taking extreme care to ensure a smooth labor market in the sector, we can all too easily envision a disturbing future where companies move their headquarters out of London as they hunt overseas for talent, which would seriously shake the UK’s position as an international fintech leader.”
He also mentions that the real question to address might not be related to whether Brexit will make things worse. Instead, we may need to consider whether there are enough professionals available with the right skills and experience.
Mitchell writes:
“The government, academia and the fintech industry must become more proactive to tackle the recruitment problems that threaten to hold back the UK’s hugely successful fintech sector.”
He recommends:
“To do this, positively addressing the subject of vocational training is urgently required. For too long this has been an underrated solution to the shortage of people with the appropriate skills that fintech employers crave.”
The Fintech Founders survey found that 56% of fintech industry leaders experienced challenges while recruiting product and engineering specialists.
Mitchell went on to add that regulation is creating a greater demand for new skills. For instance, the introduction of the second payment directive, PSD2, is creating a need for application programming in the evolving open banking sector. There might also not be enough (payment initiation service provider) PISP product specialists who can differentiate between their QWAC’s and QSEAL’s, Mitchell notes.
He suggests:
“In order to reap the benefits, the sector must turn provider to deliver effective educational programmes. As we work more closely with government and academia the next generation will hopefully gain the relevant knowledge at school that employers require.”
He also recommends that Fintech companies should work closely with students at university and help them find suitable jobs.
Mitchell reveals that many UK-based Fintech companies are establishing operations in countries such as Bulgaria, Lithuania, and Poland. There’s a lot of skilled labor in these areas.
Mitchell states:
“If the talent cannot easily come to the UK, then the UK employers must go to the talent, especially in such a competitive marketplace.”