Fintech Hiring Crisis
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Fintech Firms Halt Hiring Amid Economic Crisis

Tough times ahead for fintechs as half of all firms plan to stop hiring staff this year amid the challenging economic climate; new report findings indicate. 

Due to an increasingly turbulent economic environment and funding crisis, half of all fintech firms have had to pause their hiring of new staff in 2023.

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 financial times are having on a sector.

With banks falling like dominoes and a global recession looming, the development of financial software and the evolution of fintech innovations, combined with stalled hiring activity, will have a larger impact on consumers than ever in 2023.

This forecast forms the main takeaway from the ‘Exploring Fintech in 2023‘ report commissioned by the technology company Erlang Solutions.

A concerning new trend in fintech?

This year, the report’s findings anticipate that as many as 51 per cent of fintechs will halt their plans for new hires. Another 31 per cent are not ruling out the possibility of imposing a freeze, while 16 per cent already have a freeze on hiring in place.

Large and medium-sized fintech businesses are found to be the most likely to reduce their staffing levels compared to smaller market participants.

Furthermore, the data finds large enterprises to be nearly twice as likely to close offices or stores – and reduce software licences and seats – than their medium-sized rivals.

On the contrary however, smaller businesses are the most likely participants to be focused on ensuring the delivery of a successful outcome for their customers in the event of an economic downturn.

Ailments alleviated by artificial intelligence

Despite the doom and gloom portrayed in the main body of its findings, the also makes known the exciting new trends sweeping across the fintech industry.

Among these is the recognition of the widespread adoption of artificial intelligence (AI), which appears set to enjoy highly-successful use cases in the year ahead and beyond.

Next to this is the increasing positioning of sustainable initiatives within the heart of fintechs’ operations. The report makes clear how sustainability is no longer ‘just a buzzword’ but rather an integral pillar to achieving market success.

Elsewhere, Erlang Solutions has also identified new insights on embedded banking and blockchain technology from those at the centre of the fintech revolution.

While the threat of global recession brings challenges for fintech companies, with no sight of guaranteed survival, for Francesco Cesarini, founder and technical director at Erlang Solutions, “it’s clear that fintech has really supported consumers over the last few years of 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 customers and consumers alike,” continues Cesarini. “This is likely to involve greater cooperation to create a diverse ecosystem that works for all, and we hope our report helps to spark those conversations.”


  • Tyler is a fintech journalist with specific interests in online banking and emerging AI technologies. He began his career writing with a plethora of national and international publications.

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