A major new report by Erlang Solutions has revealed that half of all fintech firms have put a stop to hiring staff in 2023 due to the challenging economic climate. During the first half of 2022, over 4,000 fintech employees lost their jobs across 45 companies, further highlighting the impact challenging financial times are having on the sector.
With a global recession looming, the development of financial software and the evolution of fintech innovations will have a larger impact on consumers than ever in 2023.
According to the report, “Exploring Fintech in 2023”, it is expected that fintech businesses will need to embrace new technologies and innovative strategies to not only survive but also grow and expand their reach.
Hiring Freeze and Reduction of Staffing Levels
The report reveals that half (51%) of fintech firms are expecting to put a hiring freeze in place this year, with almost another third (31%) not ruling the idea out and 16% already having a freeze in place.
Large and medium-sized fintech businesses are more likely to reduce their staffing levels than smaller firms.
Large enterprises are nearly twice as likely to close offices or stores and reduce software licences and seats as their medium-sized rivals.
Sustainability and Future Regulatory Developments
The report also examines how the adoption of artificial intelligence (AI) is likely to continue to dominate in the sector over the year ahead 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 company cultures moving forwards.
Thought Leadership from Key Industry Figures
The report includes thought leadership from key industry figures, including Francesco Cesarini, founder and Technical Director at Erlang Solutions, Chris Skinner, author and speaker, Irfan Khan, founder and CEO of tech provider mmob, Daniel Belda, Head of Product Strategy at OpenPayd, Gideon Malherbe, Chief Strategist at Vaulto, and Sunil Bhardwaj, CEO of Ezpays.
Francesco Cesarini, Founder and Technical Director at Erlang Solutions, commented, “While the threat of global recession brings challenges for fintech companies and it’s true some may not survive, 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. This is likely to involve greater co-operation to create a diverse ecosystem that works for all, and we hope our report helps to spark those conversations.”
