How Fintech Startups Can Compete For Top Talent

The UK fintech market is booming. As the largest fintech hub in Europe and the second largest in the world, only just behind the US, the UK has clearly established itself as a global powerhouse in financial technology.

This rapid growth also means one thing for fintech startups: intense competition.

With over 1,500 fintech companies operating in the UK alone, each competing to stay at the top, it seems only the biggest companies will win. So for startups just beginning to build their teams, it can feel overwhelming to make their mark beside global businesses that naturally draw top-tier candidates.

But here’s the silver lining: the UK fintech market is a candidate-driven one.

People are constantly moving within the industry, and while this has its challenges, it provides a range of candidates, something that's great when hiring. However, in such a market, candidates know what they want, they know their value and are selective about what company they join.

The key for startups is to understand what these candidates want and incorporate those desires into your company culture, mission, and hiring process.

Now, you might be thinking, "But I don't have the budget to offer the best benefits or salaries. I can't provide the same global opportunities that larger fintech companies can. How can I compete?" I'll address those concerns and provide you with a fresh perspective, showing that your position as a startup is actually an asset, not a liability.

Remember That Fintech Started With Startups

Innovation, forward-thinking ideas and collaborative workplaces are traits inherently associated with fintech startups.

Whilst many companies have grown beyond that stage, your company, still in its early stages, represents the authentic, value-driven environment that many employees want. Yes, you might not have the budget for glamorous offices, sky-high salaries, or international trips, but what are all those perks without a foundation of strong values and authenticity?

When promoting your company, focus on your core values.

Perhaps your strength lies in being collaborative, hardworking, genuine, or innovative environment where every employee can be part of the innovation process. This is what truly resonates with top talent; being different and unique.

It's easy to assume that every candidate wants that big, corporate company but many candidates are drawn to startups because they offer a more intimate, sociable and entrepreneurial workplace culture. Because let's face it - the smaller the team often the stronger the camaraderie and collaboration - leading to higher job satisfaction and, ultimately, better retention.

If you want to capitalise on this perk, you need to practice what you preach.

Regularly evaluate your company culture to ensure it aligns with the values you’re promoting. This could involve hosting team-building activities, creating open forums for idea sharing, or offering flexible work arrangements that cater to the diverse needs of your employees. This means you’ll create an environment that top talent not only wants to join but is eager to stay in.

Remember Your 'Why' for Setting Up Your Fintech Business

Every company has a ‘why’. As a startup, your ‘why’ probably became a 'why' more recently when you set up, meaning it's fresher and more prominent than more established competitors.

This fresh vision and purpose give you a unique opportunity to attract candidates who aren't just the best in the industry but actually resonate with what you're doing. Remember that your ‘why’ isn’t just about what you want to achieve; it’s also about the impact others can make by joining you. If you articulate your purpose effectively, you create something that potential employees can connect with.

This is so powerful in a world like today where less professionals are seeking just a paycheck but want to feel like what they're doing is making an impact. For instance, if your company is focused on improving financial literacy, promoting ethical investing, or enhancing customer experience, make these goals central to your recruitment messaging.

As a startup, your entire mindset towards hiring will change if you're not just looking for employees but seeking valuable members of your team who will help shape your company's vision. By advertising your ‘why,’ you’ll attract candidates who share your values and are genuinely excited about contributing to your success.

Easier Opportunities to Progress in Fintech Startups

While you may not be experiencing the level of growth that more established companies have, the potential for fast career growth is a huge benefit for many candidates.

Those who join your startup will grow alongside you, experiencing the expansion of your company with a far closer look than they would in bigger organisations. For ambitious individuals, this is a huge plus. You'll have candidates come alone who aren't just looking for a job but want a role where they can make a tangible impact and accelerate their career progression.

Startups will naturally appeal to those who prefer not to get lost in a huge corporate structure but instead want their ideas to be heard. In larger companies, it can be difficult to feel connected to the higher-ups or see the direct impact of your work. In a startup, however, employees often work closely with founders and senior leaders, using an entrepreneurial atmosphere where contributions are visible and valued.

This also leads to how management styles in startups often allow for more personalised mentorship and productive relationships, which is probably a reason why promotions happen quickly.

So if you want this to shine through when hiring and interviewing, emphasise the entrepreneurial environment and the chance to make a significant impact from day one. By framing your company as a place where ambitious people who are passionate about fintech can thrive, you'll find it less of a struggle when competing with bigger companies.

- Written by May Hou

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