Challenging times lead to hiring freezes for Fintech companies
London, United Kingdom – (NewMediaWire) – March 21, 2023 – Half of all fintech firms have stopped hiring in 2023 due to the challenging economic climate, according to a major new report.
During the first half of 2022, over 4,000 fintech employees lost their roles across 45 companies, from mortgage lenders to firms processing digital payments, further highlighting the impact challenging economic times are having on the sector.
With a global recession looming, the evolution of financial software and the development of fintech innovations will have a greater impact on consumers than ever in 2023.
That’s all according to a new report Exploring Fintech in 2023 by Erlang Solutions, leading technology experts working with companies globally to build and deliver transformative, scalable and innovative technology solutions.
Half (51%) of fintech companies expect to put a hiring freeze in place this year, with nearly a third (31%) not ruling out the idea and 16% already having a freeze in place.
Large and mid-sized fintech firms are more likely to downsize than smaller firms, and large firms are almost twice as likely to close offices or stores and reduce software licenses and seats as their mid-sized rivals. This trend can be attributed to various factors such as the need to optimize operational efficiency, reduce costs and increase productivity.
Furthermore, it has also been revealed that larger companies are almost twice as likely to close offices or stores, as well as reduce software licenses and seats compared to their mid-sized counterparts. These measures are taken by companies to streamline operations, improve profitability and respond to changing market dynamics.
It is important to note that while such 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 companies can not only survive, but also grow and expand their reach.
Small businesses were more likely to be focused on setting customers up for success in the event of a deeper recession.
The annual report, which brings together leading Fintech industry experts to examine the industry trends set to influence the year ahead, also looks at how the use of artificial intelligence (AI) is likely to continue to dominate the sector over the coming year. and how companies can expect to see future regulatory developments over the coming months.
The agency argues that sustainability is no longer just a buzzword in fintech and will need to be at the heart of corporate cultures moving forward, and the report also provides new insights on embedded banking and blockchain from those at the center of the fintech revolution.
The report includes thought leadership from key industry figures, including Francesco Cesarini, founder and CTO of Erlang Solutions, Chris Skinner, author and speaker, Irfan Khan, founder and CEO of technology provider mmob, Daniel Belda, head of product strategy at OpenPayd, Gideon Malherbe, chief strategist at Vaulto, and Sunil Bhardwaj, CEO of Ezpays.
Erlang Solutions is a global technology company that offers a unique blend of expert technical capabilities, world-class consulting services and a vibrant community. With over 20 years of experience building massively scalable distributed systems, it builds and maintains transformative distributed systems for clients ranging from startups to Fortune 500s, including WhatsApp, Klarna, Pivotal, Motorola, Ericsson, Adidas Runtastic, Kivra, Pando Health, Pepsico and more.
Francesco Cesarini, founder and CTO of Erlang Solutions, said: “While the threat of global recession brings challenges for fintech companies, and it is true that some may not survive, it is clear that fintech has really supported consumers in recent years with global challenges, and that it will continue to do so.
“As a people-focused consultancy, we want to support the creation of an industry that provides stability, flexibility and opportunity for clients and consumers alike. This will likely involve greater collaboration to create a diverse ecosystem that works for everyone, and we hope our report contributes to to initiate these conversations.”
For more information, contact: Cara May-Cole [email protected]
