“In the FinTech world, a millisecond isn’t long enough. When a FinTech is hiring, they need someone who can start yesterday,” says Alex Horner, VP of Commercial at FinTech recruitment company Storm2.
Over the past few years, the FinTech sector has boomed in the UK and globally. In 2020, despite businesses in many industries closing their doors and laying off staff, FinTechs have continued to hire and, especially for those already established, raise billions in capital. Storm2 looks to meet the specific needs of a sector that requires a non-traditional approach to recruitment as it looks to disrupt traditional industries.
Currently, most FinTech recruitment happens in the “tech” section of a financial services recruitment business, or a broader business with a financial services desk. “That’s not FinTech; FinTech is a different sector within the industry,” explains Horner, who forms part of the leadership team of Storm2 with CEO James Brown.
In the early days, some argued the focus on FinTech was too “niche”, but honing in on one of the UK’s fastest growing industries has paid off. Now at 50 staff, the business recently closed US$3mn in its second funding round. ““A big part of being successful is actually doing what you say on the tin. We want to specialise in one place; not occasionally add things that seem like a good opportunity at the time. We’ve got to be laser focused to ensure we offer the best service to our clients.”
The FinTech mindset
In any industry, hiring the right talent is vital. In an industry with a large proportion of startups, it can have an even bigger impact. “A lot of these businesses are embryonic and the wrong hire can have a hugely negative impact,” comments Horner. “But with those early hires, that’s where FinTechs come into their own. Founders have great stories you can buy into immediately and see the end goal. They’re also good at offering equity, so there’s skin in the game and everyone wants to play their part.”
While there is no one magic quality that makes a good FinTech employee, Horner says there is a particular mindset that’s needed in the sector. “A lot of people working for a larger institution would struggle to go to a small startup with less resources. You really have to roll your sleeves up and do things you haven’t done for 15 years, because that’s the nature of the beast. For the right mindset, that’s really appealing.”
A trusted partner
Storm2 aims to help FinTechs find that right mindset from day one, whether they are hiring a new graduate or an experienced exec. To achieve this, it’s important to build a long-standing relationship with the business – rather than the more transactional relationship companies often have with recruiters. “We want to be a trusted partner so the client can come to us for advice on things like salary, equity, and even if it’s the right time, before they start hiring. You need that long standing relationship to get to know the business well, and it’s exciting to be part of their growth journey.”
As Commercial Director, Horner continually works to add to Storm2’s offering, and ensure it has a much wider impact than just placing the right candidate. The team has just produced a report on how to retain FinTech talent – “It’s about offering a cool opportunity, but then what happens when you’re two years down the line and they start thinking about other things?” – as well as salary surveys, and is currently compiling an ebook on Diversity, Equality and Inclusion. “You’ve got to do all that in the background to add the extra value,” says Horner.
Finding the right talent
Having built partnerships with 120 FinTechs across subsectors like payments, RegTech and InsurTech from pre-Series A to Series C, Horner says it’s been necessary to do things a little differently to its competitors. “We pride ourselves on the ability to find talent. I personally don’t think it’s ethical to charge a client a fee for going on a jobs board and printing out some CVs – that’s not recruitment.”
Instead, Storm2’s 42 recruiters aim to source 25 exclusively headhunted candidates within their specific niches, ranging from DevOps and Engineering to Compliance, allowing them to become an expert in their field. Those chosen are passive candidates – who aren’t actively looking for work – so they wouldn’t be found on a jobs board or LinkedIn. “We try to find that talent that isn’t readily available. We know what might entice these candidates so we can persuade them to look at a certain job. That’s the difference in skill,” Horner explains.
Another key selling point that appeals to fast-growing FinTechs is, of course, speed. “We have a clause in our contract that we will deliver within 48 hours. Depending on the role, we can sometimes access our talent in six hours. We’ll pick something up in the morning and have four really strong profiles by the end of the day.”
Global growth and new challenges
Despite the global pandemic, Storm2’s business tripled in 2020. “We hired 22 people in August,” says Horner. “The market was definitely there. Of course Covid has an impact, but the beauty of FinTech is there’s a lot of investment going into the market. By September we saw a return to pre-Covid numbers of live jobs advertised in the UK. We did a record number that month, and broke it in November.”
Heading into the New Year, Horner says 2021 could bring welcome change for the workforce – with even the most hesitant employers embracing remote working. “In some areas, it’s clear productivity has increased. Leadership will have to change their focus from input to output,” Horner comments. “I think FinTech is a pretty agile and open-minded sector, so that will be more achievable going forward than in some traditional markets.”
Remote working has also meant Storm2’s clients can broaden their horizons when it comes to talent. “You may want people from a part of the world where the skillset is stronger,” says Horner. “If you’re a startup or pre-seed FinTech, you might look at areas where salaries are lower due to the cost of living, but skills are still fantastic.”
With Storm2’s journey reflecting the growth of the sector as a whole in the UK, it has seen a steady increase in demand for new skillsets. “Product and technology are key areas,” Horner explains. “A lot of businesses are moving from offering one product to multiple; diversifying to capture the market. That comes with a lot of demand for skills in DevOps and engineering.”
The next step for the business is international expansion. Following its July funding round and its new hires in the UK, Storm2 hired recruitment veteran Candy Choong to head up its new Asia office in October, with 10 staff to be based there from January. A new European hub is launching in Amsterdam in the next few months and a North America offering is also in the works, opening up an office in New York this May.
Having built and proven its recruitment model here in the UK, Storm2 is confident it can help connect international FinTech with the talent it needs. By doing so, it hopes to unearth a new generation of FinTech stars and build a truly global ecosystem.
