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The Fintech Hiring Boom Fueling Texas

fintech hiring

With all levels of banks and financial institutions investing in technology, fintech hiring in Texas is picking up steam. As Plaid points out, “The percentage of U.S. consumers using technology to manage their finances jumped from 58% in 2020 to 80% in 2022—meaning more people now use fintech products than social media.” In response, banks and financial institutions became the largest industry investor in AI—among other technologies—in 2023.

Fintech Startups

Fintech startups providing specific tools and software-as-a-service (SaaS) remain prominent employers in the fintech space. Austin-based AffiniPay is an excellent example, providing flexible payment integration options for the legal, psychology, and accounting industries. Juniper Square, another Austin-based fintech startup, provides software that streamlines the investment and fundraising industries. Check out BuiltInAustin’s list of top Austin fintech companies for other examples.

Some of these startups compete directly with banks, investment firms, and other financial sector giants. But others like AffiniPay offer support solutions, particularly for small- and mid-sized businesses in the industry. Plano-based Alkami Technologies was recently tapped by Credit Union of Texas (CUTX) to help provide cloud-based digital banking solutions to credit union customers, for instance.

Fintech Hiring in Traditional Sectors

But with fintech becoming so ubiquitous, traditional banks, accounting firms, and more in the financial sector are investing in their own fintech hiring strategies.

“To keep up with the rapid pace of AI advancements, financial institutions are prioritizing hiring objectives to gain expertise in cloud computing, AI, machine learning and programming,” JLL market researchers state. “Software developers are now one of the most in-demand roles in the industry, and since 2018, the largest banks have increased hiring for software developers and data scientists by 90%. In addition to software development, cybersecurity and risk management are in high demand as banks face increasing regulatory pressures from the U.S. Federal Reserve and FDIC to improve risk infrastructure and internal governance.”

Accounting firms are also increasing fintech hiring to help support virtual advisory services, generate resources that fit into digital formats, shore up their cybersecurity, and more. Why bring it in-house? A recent Capterra survey found that more than half of fintech users seek advice from fintech apps before consulting their accountant, and 64% say these tools have significantly reduced their need to interact with their financial advisor.

“Alarmingly, the data also reveals that 45% of fintech users think that these tools could make working with financial professionals obsolete in the future,” says Capterra Senior Analyst Max Lillard. So, instead of handing those services to startups, it makes sense that banks, financial institutions, and accounting firms want to bring them in-house.

How Does This Affect Texas Hiring?

JLL has discovered that, as the industry matures, fintech headquarters are no longer limited to traditional finance centers like New York City and technology mega-hubs like the Bay Area. Instead, they’re dispersing to cities where they can access scalable, affordable tech and finance talent.

“New York City undoubtedly remains the epicenter of the global financial services industry,” explains Sarah Bouzarouata, Senior Manager, Research, JLL. “However, there has been a shift in financial services employment to more cost-effective and growing markets such as Dallas, Phoenix, Atlanta and Miami.” In fact, outside of New York, Dallas has seen the biggest increase in financial services employment jobs (14%) since 2019. As we pointed out above, Austin’s startup scene now includes a hefty dose of fintech, too.

How to Compete

You have great options if you’re looking for ways to compete as a Texas-based small- or mid-sized employer in the financial sector.

First, you could stick with outsourcing your fintech for now. But where to start? You could tap an advisor or hire a fractional executive experienced in digital transformation. The expert can help you create a roadmap that includes helping you select the right SaaS and other tools to achieve your digital transformation goals.

If you’re further along in your digital transformation, you may be looking at fintech hiring directly. You’ll want to work with recruiters who can help you compete for top talent in Texas (or elsewhere if your position is remote) and create a scalable plan. Should the position(s) be permanent or contract-to-hire? How can you craft a hiring process to assemble a team that fits together from the start? What will your long-term staffing needs be after the initial development and launch?

Texas’ fintech hiring boom shows no signs of slowing down, with demand for talent outpacing traditional tech hubs. There’s no time to waste when it comes to participating in the digital transformation fueling this boom.

Photo from 123rf.com

Photo from 123rf