The UK’s Fintech sector is bracing for a talent crunch in the coming year, with a significant gap emerging between the demand for digital skills and the available workforce, City A.M. reported, quoting a leading industry figure.
Charlotte Crosswell, chair of the Centre for Finance, Innovation and Technology (CFIT), backed by the UK government, has highlighted a critical year ahead for the financial services and fintech sectors.
This warning comes as the government strives to rejuvenate the sector following a challenging year globally. Crosswell, speaking to City A.M., expressed concern about the widening skills gap.
“The industry is facing a growing discrepancy between the technology skills demanded by financial institutions and the supply of talent,” she stated.
She emphasized the need for a closer collaboration between the fintech industry and academic institutions to maintain the UK’s leading position in the global fintech arena.
CFIT, established in 2021 with a £5m seed fund from the Treasury, has initiated several partnerships with universities this year, aiming to equip undergraduates with essential digital skills.
Despite these efforts, tech firms across the UK are experiencing a severe labor shortage, exacerbated since Brexit hindered the free movement of talent from Europe.
A September report from digital talent platform Gigged A.I. revealed that approximately 34 percent of UK-based tech firms are grappling with significant internal tech skills shortages.
High-profile UK fintech firms have also raised concerns about their ability to access necessary talent. At London Tech Week in June, Rishi Khosla, the chief of digital lender Oaknorth, lamented the firm’s difficulties in hiring individuals with experience in scaling up businesses, a sentiment echoed by many entrepreneurs in the country.
In response, UK ministers have been actively working to attract global talent to the tech sector. The introduction of the ‘High Potential Visa’ allows recent graduates from the top 50 global universities to work in the UK along with their families for two years.
Additionally, the Global Talent Visa, introduced in 2020, targets highly skilled workers, facilitating their move to the UK for tech roles.