Acquiring Talent: Talents Needed by Fintech Companies
Abstract
It has come to realization, preferably as an axiomatic fact, that technology is the new order of the world. Technology affects every aspect of human endeavor ranging from Engineering, through medicine, to Artificial Intelligence. In light of this, the Finance industry is not an exception. Technology is not only utilized to carry out financial services, but also to replace the traditional system of rendering financial services. This innovation is referred to as Fintech. What is more, in order to effectively achieve the goals of Fintech companies, certain talents have to be at the disposal and employment of such companies. Accordingly, the thrust of this article is to enumerate and make known such talents needed by the fintech companies. The writer intends to proffer a clear and useful information on the aforementioned in the following paragraphs.
Keywords: Fintech, Talent, talent management
The Concept of Fintech
Fintech is a portmanteau from two distinct words of ‘Finance’ and ‘technology’. Logically, what is implies is ‘Financial Technology’. Distilling from the combined meaning of both aforesaid words; one can comfortably say, literally that ‘fintech is the judicious and purposeful utilization of technological devices and know-how to improve financial services and solve financial problems by companies’. However, in a professional parlance, the Financial Stability Board defines it as ‘technologically enables financial innovation that could result in new business models, applications, processed or products with an associated material effect on financial markets and institutions and the provision of financial services’[1].
This form of practice is targeted at replacing the traditional form of banking, tempering the harshness and easing the delivery of banking services. As opposed to traditional banking system which involves manual operations to a considerably large extent, the operation of fintech is largely and majorly online, with little or no physical interaction while rendering the financial service. Examples of fintech companies in Nigeria include Fluttervave, Paystack, Accelerex, Piggy vest, Paga etc.[2]Beyond the boundaries of Nigeria, a notable fintech company is the Up Fintech Holding Ltd, especially when it appeared in a suit in 2021.[3]
There are several bodies responsible for the regulation of the Fintech companies in Nigeria, and the world in extension. In Nigeria, the major regulatory body for the Fintech operations is the Central Bank of Nigeria (CBN).
Concepts of Talent and Talent Management
For a proper and clear understanding of the goal of this article, clarification on the concept of ‘talent’ is important. Talent in the financial world is definitely synonymous with the skills/workforce, if not the same. It can be referred to as the set of skills needed by a company for effective and efficient delivery of such company’s services. The process used by companies to optimize how they recruit, train and retain employees is called talent management. Through, workforce planning, companies anticipate their needs and goals attempt to hire a workforce that reflects those needs[4].
Talents Needed by Fintech Companies
1. Technology proficiency
Since, technology is the basis of the Fintech Companies, they need a great deal of financial proficiency. In other words, such fintech company must my tech savvy as possible. This include employing skills including programmers, and software developers.
2. Data analysis
Data analysis is the process of inspecting, cleansing, transforming, and modeling data with the goal of discovering useful information, informing conclusions, and supporting decision making[5]. It is safe to state that any online business operation rests on data and statistical analysis of same. As such, data visualization and statistical analysis is essential. This will enable the Fintech company predicts, plan and visualize business ideas based of analysis of data.
3. Cyber security
Owing to the fact that financial information is involved, a great deal of cyber security is valued. This include knowledge and expertise in encryption, hacking and threat detection. This is not only to protect the company from online threats, but also to earn the trust of the company’s clientele.
4. Financial Intelligence
The importance of financial acumen to Fintech companies cannot be overemphasized. Financial intelligence can be defined as the gathering of information about the financial affairs of entities of interest, to understand their nature and capabilities, and predict their intentions[6]. Thus, understanding financial markets, investment strategies, and risk assessment is sacrosanct for Fintech companies and professional.
5. Legal service
Owing to the various regulations in place, strict and reasonable compliance to those regulations is valued for undisturbed running of the affairs of a company. The Fintech Company is not exempted or excused. This is where legal advices come to play. Every Fintech Company is continually in need of a legal adviser in order be up-to-date as regards to new developments and amendment to regulatory frameworks.
6. Product management
A product manager is one who gives recommendations on the design, functionality, and usability of the product of service. Two major branches of product management are needed in this area, which include User interface Design (UI) and User experience Design (UX). While the former deals with design and interface of the desired platform for the operation of the Fintech company, the latter deals with the usability and accessibility of such platform. For easy accessibility, usage and navigation of the Fintech applications and platform, the aforementioned skills in valuable.
7. Problem-solving skills
The skill of identifying, analyzing, and deciphering complex financial problems and proffering solutions to such problems is needed. The importance of this skill is second to none, in running a successful Fintech company. Fintech companies must be able to foresee and tackle financial problems.
8. Marketing and publicity
Another talent which important cannot be overemphasized in that of publicity. In order to reach the desired set of customer, publicity is required. There must be various ways and medium by which the Fintech Company publicizes their services and name. Also, they must be available for contact on social platform which require a considerable degree of publicity skills. Conclusively, there is also a need for advertisement and marketing.
What Fintech Companies Should Consider Legally When Hiring Talents
It is a known fact that there is always a legal aspect to every company’s activity, especially owing to the fact that a company is an artificial person[7]. As to the employment as acquiring of new talents, these are what fintech companies should consider.
- Compliance with labour laws: the employment terms must be in compliance with the current and extant labour laws in the countries.
- Equal opportunity: the Fintech companies must adopt and promote an anti-discrimination policy in order to provide equal opportunity for the people in terms of work force allocation.
- Employment contract: there must be an existing and law-compliant employment contract between the employee and the Fintech Company.
- Intellectual property: the fintech company must be abreast of the current intellectual property laws and reflect same in the employment contract and policy. This is not only to protect the ideas and works of the company, but also to protect that of the employees.
- Work authorization and immigration laws: if the Fintech company intends to expand their workforce and services beyond the territories of one country, then the knowledge and compliance with the work authorization policies and immigration laws of such country is highly need and valued.
- Date Protection and Privacy: the employment contract of the company should reflect relevant Data protection policies. This is to ensure adherence with the data protection laws of the particular country of work. Also, since the Fintech company deals with Data, the privacy and protection of such data is important.
- Insurance: Another major area of consideration is that the Fintech Company should adopt insurance policies that will be favourable to them. Also, the company should ensure adherence to current and existing insurance laws in the country. A major importance of this is also to secure insurance policies that will favour the employee.
- Non-disclosure Agreement: The importance of a Non-Disclosure Agreement is a company dealing with Financial information and Data processing is second to known. Since the Non-Disclosure Agreement will prevent the workers from disclosing vital information and Data to the public, it is highly recommended and needed by the Fintech Companies.
- Non-compete Agreement: the intellectual property of a company needs to be prioritized. A feasible and major way through which a company can protect such right is by signing a Non-compete Agreement that prevents the worker from working with another company or firm offering the same service within a certain time frame and geographical area. This Agreement is mostly important and relevant after such worker have left the company.
Conclusion
In Summary, Financial Technology (FinTech) is a technology driven financial services provider. It is a newer, easier and faster way of providing financial services, remedying the shortcomings of the traditional banking systems. As such, these Fintech Companies require some set of talents which include regulatory adherence, technology proficiency and financial acumen, amongst others.
[1]Xavier Vives, ‘The impact of Fin Tech in banking’ (European Economy, 2017) https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5%q=fintech&btnG=#d=gs_qabs&t=1696320819252&u=%23p%3D9qYIGHuhlr0J/ accessed 03 October
[2] Joy Umeh, ‘Top 10 best FinTech companies in Nigeria’ (2022) https://www.clacified.com/business/16/top-10-fintech-companies-in-nigeria/ accessed 03 October
[3] Willard v UP Fintech Holding ltd 527 F. Supp. 3d 609
[4] Laura Fitzgibbons, ‘Talent management’ https://www.techtarget.com/searchhrsoftware/definition/talent-management/ accessed 03 October
[5] https://en.wikipedia.org/wiki/Data_analysis/
[6] https://en.wikipedia.org/wiki/financial_intelligence/
[7] MMA INC & ANOR V NMA (2012) LPELR-20618 (SC)
About Author
Toheeb Alimi is a penultimate student of Lagos state University, faculty of law. You can contact him through email – [email protected].
This is an apt and informative article for Fintech companies and people with those required talents.Thanks for this article,it’s really helpful.