Hiring freeze for Fintech firms

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 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 a new report by Erlang Solutions, 51% of fintech firms are expecting to put a hiring freeze in place this year, with almost another 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, and large enterprises are nearly twice as likely to close offices or stores – and reduce software licences and seats – as their medium-sized rivals. 

Small businesses were more likely to be focused on setting their customers up for success in the event of a deeper recession. 

Francesco Cesarini, Founder and Technical Director at Erlang Solutions, said: “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.”