China promises great opportunities for fintech talents

Fintech is already a fast-growing industry in China, and the number and diversity of roles available are creating opportunities for financial services and technology professionals, international recruitment expert Hays has noticed.

From C-suite and director to manager and associate levels, the workforce dynamics are changing in the whole of China, when the rise of Fintech brings challenges to traditional branch banking.

The country has many factors in its favour, starting with a tech-savvy population. China is a country of early adopters who embrace change. The economic transformation of the past 40+ years has heightened that acceptance, and with that all the ensuing technologies.

“In China there are opportunities for skilled candidates across a wide range of fintech businesses including banking, insurance, wealth management and payment services. In fact, the industry risks losing valuable momentum given the shortage of skills and the overwhelming demand for experienced professionals,” said Simon Lance, Managing Director of Hays Greater China.

“For those already in the fintech industry, China offers great potential. And for those in banking and financial services – or with relevant technology skills – now is a good time to consider what your career could be in the FinTech industry”, he continued.

Across China, large-scale commercial banks are accelerating the establishment of fintech subsidiaries. They’re also looking at BankTech focused on lending, customer experience, and deepening customer understanding.

Hays notices the roles in demand in banking sector include data security, data scientists, UX and UI engineers, and full stack developer for mobile and web applications.

Demand High for Experience in both Banking, Finance

Fintech professionals who possess both technical expertise as well as an understanding of finance will be highly sought after.

China is home to the world’s biggest banking sector, yet it is also under-developed. Only one in three people in China have a credit card, yet on average each person carries 3.6 debit cards. The country has leapfrogged from cash to mobile payments, bypassing card payment systems. Insurance and wealth management industries are quickly adopting new tech to keep pace with the market’s growth potential.

“FinTech offers career opportunities to people with experience in almost every area of banking and financial services, as well as experts in Artificial Intelligence (AI), Biometrics, Cloud and Big Data,” Simon said.

Globally, fintech funding rose to US$ 111.8 billion in 2018, up 120 percent from $50.8B in 2017 according to KPMG in report, Pulse of Fintech (access here). The industry is particularly strong in China with a large number of established and start-up players vying across a wide range of new applications.

Fintech firms now penetrate nearly every financial services segment, driving innovation and disruption. They are also making improvements in the customer experience, and tapping into big data to help banks better understand their customers.

“China is on the cutting edge of the fintech industry and will provide a robust and exciting career for many years to come,” Simon said. “Fintech also provides opportunities for those in related technology fields.”

Tech Talents “Will Have Immediate Opportunities”

The growth of tech payment companies hasn’t gone unnoticed.

According to Daxue Consulting, 40% of the retail consumption today in China is done via third-party payments. WeChat and AliPay are two of the largest players. The mobile payment services industry – or PayTech – is growing fastest in China. Almost half the world’s digital payments in 2017 were made in China, according to Mordor Intelligence in their report, China Fintech Market.

“There is high demand from fintech start-ups for high-calibre talent with expertise in digital payment systems, digital asset management, blockchain and cryptocurrency continues,” the 2019 Hays Asia Salary Guide said. Hays expects qualified fintech candidates to command higher salaries in 2019. InsurTech is another fast-growing sector in China.

Here the dual challenge remains increased access and greater efficiency while overcoming customer experience issues. Much of fintech is about improving the customer experience. To access the mass market, Tencent, for example, has secured a license to sell insurance products on its messaging apps WeChat and QQ.

Chinese fintech giant Ant Financial has also been eyeing the lucrative healthcare market in China. Its online mutual aid platform, launched last October, is aiming to reach 300 million users within the next two years, according to the company’s official website.

WealthTech is focused on mobile wealth and investment management. It includes firms such as Ant Finance, and Betterment.

Asia is home to the world’s largest wealth management market too, thanks to China’s significant accumulation of wealth in recent years, according to Singapore’s fintechnews.sg.

These increases in disposable income have driven up Chinese personal investable assets, which increased from $11 trillion in 2012 to $22 trillion in 2017, or at a compound annual growth rate of 15 percent. In the following five years, it is estimated, they will rise at a rate of 11 percent to reach $37 trillion, according to www.brinknews.com.

Artificial Intelligence in Fintech is used to automate high volume, repetitive tasks. Biometrics allows customers to conduct transactions online that may have required an in-branch visit in the past (such as fingerprint authentication via smartphones). Cloud is allowing cost-effective infrastructure, and Big Data provides detailed and personalised analysis to better predict customer behaviour.

“Professionals with skills and experience in these core technologies will have immediate opportunities in Fintech,” Simon said.

“Fintech Isn’t for Everyone”

“At the same time, fintech isn’t for everyone. Take the time to better understand the opportunities – and the corporate culture – to ensure you find a long-term career growth role,” Simon noted.

Before making the move into fintech, spend time understanding the role and the culture of the company, Simon added;

“For those new to the industry, the change can be surprising. New entrants to the industry – many with traditional banking backgrounds and no experience with start-up culture – have been surprised with the lack of traction they’ve gained. Market saturation, adjusting to start-up culture, and the growing presence of their former employers – large traditional banks – have made life difficult for many fintech entrepreneurs,” he said.

For many, the allure of Fintech is irresistible. Making the convergence of problem-solving technology with traditional banking products is a challenge that developers and product experts relish.