Building a high-growth fintech shouldn’t come at a high human cost

Fintech is one of the most well-funded and fastest growing areas of emerging technology.

Employee churn can be a major problem for a company that’s growing

In the UK alone, fintech investments topped £27.5 billion in 2021, which is a sevenfold increase compared to 2020. This incredible growth rate is a reflection of the market opportunity. Instead of relying on traditional banking systems built decades ago which are not always fit for purpose, there is a significant opportunity to innovate through listening to customers to build something truly impactful.

While this offers a lot of promise, it can bring numerous challenges for the industry. The pressure to be the first to market a new product, remain on top of competition from fellow disruptors, and maintain a strong culture while building a high-growth environment can lead to a disjointed workforce. Yet high-speed growth shouldn’t come at a high human cost.

Debunking false perceptions

The notion that growth and innovation in the fintech industry are dependent on an unhealthy workplace culture that asks too much of staff is not a foregone conclusion. This will become clearer as fintechs grow in value and proliferate, as there will be more competition to recruit and even more success stories to showcase the long-term value creation of a positive culture – not only with the products and innovation, but also with the people.

The reality is that only a small group of fintechs take the ‘move fast, break things’ motto to the extreme, which can often lead to employee burnout. However, due to rapidly increasing valuations, these outlier examples can become more visible in the news and create a misperception of an endemic issue in the sector.

The fintech industry has a moral duty to not only look after their employees, but also to prove this perception is wrong so that great candidates are not discouraged from a promising career in the fintech sector. With greater diversity of talent and a more inclusive working environment, companies will be better positioned to be competitive in the long term and attract both employee talent and customers.

A hyper-growth fintech can be built without sacrificing a supportive team culture. Rather, by committing to building a moral fintech, businesses can increase their chances of success. For instance, offering true employee support increases the chances of retaining talent with a good understanding of and a passion for the product and how it positively impacts real customers.

In order to scale, fintechs need to take into account long-term value creation and ensure a superior customer experience, including among employees – starting from their very first interactions with the business. Tracking employee favourability towards your own products is a great way to confirm if your teams understand the value your business is bringing to the broader market.

Improving the hiring process

Ultimately, taking on new people is both a thorough process and a leap of faith. For certain roles, it can be difficult to identify the top talent to onboard. However, steps can be taken to enable quick yet intentional hiring so the business is supported as it grows.

Interviews are a two-way street: interviewees need to be honest about what they’re looking for and fintechs need to sell the business truthfully to secure, and keep, the best talent.

During the actual interview process, building rapport enables new potential hires to open up more quickly and as a result, provide clearer insight into whether they are a good fit for the company. Establishing rapport from the start also helps encourage retention by setting the tone for an environment where employees have a voice and are valued.

Regular customer and employee surveys as well as partner rankings all play a role in not only illustrating a positive work environment, but also helping the business to keep improving in response to feedback. Many prospective applicants will ask about culture or for a response on recent feedback from an employee. Having a bigger picture view of your strengths and weaknesses can help ensure applicants get the right impression that building a strong culture is a real priority for the business.

There are key traits hiring managers can look for in new hires – such as mapping their qualities and experience to business needs. For example, international expansion requires talent across markets, so for those businesses looking to expand, local talent with an understanding of the market will prove to be an invaluable asset.

Given the speed of change in the fintech industry, employees should possess a willingness to learn, communicate and collaborate with colleagues to keep up with the pressures to innovate rapidly. Hiring with a view towards culture and values fit is also a non-negotiable for ensuring teams are set up for success longer term.

Balancing the need for speed with a supportive work culture 

Encouraging people to move fast should be done in a way that’s supportive. Ideally, teams need people who can handle the speed of working in a fast-paced environment and who are supported to be able to present new and exciting ideas to drive the business forward.

A collaborative in-person or virtual work environment creates a great space to gather different perspectives and support one another with complex problems. Openness and willingness to cooperate between team members helps fintechs succeed in the short and long term.

Importantly, a supportive work culture should be driven by a management team that wants the best for every individual and takes the time to know what that looks like. Specific actions to understand this include quarterly employee surveys to hear and take into account employee feedback.

It’s also important to show evidence of teams embracing company values and succeeding, whether that recognition comes through employee awards or something as informal as weekly shout-outs. Encouraging the team to take time for their own interests and social events, from book club Slack channels to a running group, is also key and helps build team morale. It also ensures everyone feels they can bring their full selves to work and be authentic.

The fintech industry is filled with high-growth aspirations but no business is perfect. Ultimately, every business leader needs to be willing to learn from mistakes, try something new and grow in line with employee needs.

Ensure employees’ values line up with the business 

Another key factor in long-term business growth success is alignment. Differing values can be a recipe for disaster. To create a good culture, the organisation’s values must be clearly articulated to staff and management must stay true to those values.

Alignment is key to an upward trajectory. Ensure teams are focused on the most important priorities for the long-term growth of the business. For example, have targets that the whole team can get behind, with each person confident in their individual role for supporting the business’s bigger goals. Efforts from individuals and departments must move in the same direction to maximise potential impact for what matters most to the business.

Needless to say, it is important to embrace and respect different cultures, both within and outside of the organisation. This means staying true to the organisation’s values but recognising that an engineer in Hong Kong might interpret them slightly differently to a salesperson in San Francisco.

If fintechs are to continue their growth trajectory, they need to be able to encourage great talent to enter the sector and ensure staff remain motivated to stay. To do this, all fintechs need to set the record straight on what it takes to thrive in this industry: high-growth does not require an unhealthy work culture.

Employee churn can be a major problem for a company that’s growing. But when fintechs can demonstrate that they can value their employees, customers and partners while achieving high growth, they will be setting themselves up for success with a strong culture that is compatible with long-term growth.