Investments in the fintech sector in Singapore nearly quadrupled to $453 Mn in the first half of this year, making the country the third largest fintech market by funds in APAC, right behind China and India. However, when it comes to talent, the fintech sector faces an acute shortage of it.
The Fintech Employment 2019 report by Michael Page shows that 94 percent of respondents in the city-state are facing a talent shortage, and 64 percent of employers face difficulties while hiring fintech talent.
From lack of professional skills available to skilled employees switching jobs frequently, there are many challenges fintech employers are facing. Among the fintech talent surveyed, 37 percent of respondents shared that they had changed jobs within the past 12 months and about 21 percent said that they expect salary raises ranging from 12 to 15 percent when securing a new role. The many emerging players of the fintech sector hence fight for a scarce pool of available talent.
Singapore’s developed financial infrastructure and policy framework are some of the reasons leading fintech firms to the country. However, the lack of availability of skills might hinder their growth they are aiming for. At the end of October 2018, there were about 756 fintech ventures in the country, as per Moody’s.
As more than 700 fintech firms in Singapore compete for the same scarce talent, it is also important to know what attracts the talent. As per the Fintech Employment 2019 report, the key motivators are technological capabilities and future adoption, a clear career path and company culture fit.
Keeping these key motivators in mind, the fintech ventures in Singapore should focus on redesigning their talent practices and packaging them to present an attractive employer brand. Meanwhile, it is also important that there should be more skilled professionals in this space. The nation, hence, needs to invest in building the capabilities required in the fintech sector.
Nilay Khandelwal, Michael Page Singapore Managing Director suggested that to ease the acute shortage of fintech talent, Singapore needs to nurture and produce top quality and industry-ready talent through education. This is to ensure the country has the skills and capabilities to ensure the expected growth of the sector.
As the demand for the fintech products increases, not just Singapore, but demand for more skilled fintech talent will rise across the globe. The academies, institutions, government and employers should therefore join forces and start nurturing and creating fintech talent.