Remember the 2008 financial crisis? If you lived through it, it’s impossible not to.
Many wealth management firms remember it well too since the crisis eroded trust in financial institutions. As a result, the fintech industry became more popular. Suddenly, startups everywhere were creating new sites and apps for personal finance, empowering users to manage their wealth on their own.
But as it turns out, there’s still a demand for traditional wealth management – and fintech.
What does the current state of hiring for wealth management and emerging fintech look like? Here’s what you need to know.
There’s Room for Emerging FinTech and Wealth Management
To start with, it’s important to note that fintech has doubled in size. There are over 26,000 fintech companies worldwide, which is nearly double the amount two years ago. The digital transformation of the finance industry has led to an explosion in personal finance and investor apps.
While fintech may seem like a big disruptor to the wealth and asset management industry, high-net-worth individuals with liquid assets of a million or more will still benefit from the fine-tuning that a wealth manager can provide. That’s because a good wealth manager will offer advice that a financial app or platform can’t provide, such as risk management, planning for charitable giving, and advanced tax advice.
Also, wealthier clients will naturally have more assets and require more oversight. For those individuals, wealth management is still valuable.
Keep in mind a high net-worth individual has at least $1 million in highly liquid assets such as cash or equivalents, but it’s likely they have other illiquid assets too. These assets could include collectible art, motor vehicles, or antiques.
Fintech vs. Wealth Management Hiring
As many return to the office, remote hiring will continue to level off. That’s not to say it won’t continue to happen, especially in areas with a smaller talent pool, but expect more companies to want workers in the office.
A fintech startup can use remote hiring as one of its perks. Maybe they don’t have the compensation packages or prestige of larger companies, but the ability to work remotely either full-time or hybrid, is a huge perk to many employees. This is also a perk that traditional wealth and asset management firms may not offer.
It’s also important to know that contract work is very much alive and well in fintech. One in five jobs is a contract role. While contracting is not for everyone, many see it as a way to get their foot in the door.
Conversely, wealth management firms may not as eager to hire remotely. However, working at a major firm can be a boon to one’s resume. Alternatively, you could work independently and choose self-employment.
A wealth management career is also ideal for those with good social and sales skills. Not only is it important for working with clients, but good networking skills can land you job interviews.
Let Us Help Your Organization
Understanding emerging fintech trends is important to keep your value as a potential employer or employee high. Likewise, wealth manager careers aren’t going anywhere. There will always be a demand for individuals who can be trustworthy and proactive, especially when handling assets in the millions.
If you’re looking to staff your company or are seeking new opportunities in the financial industry, TheStaffed can help. Contact us about your staffing or employment needs.