The Career Migration Trend: From Traditional Banking to Fintech

In recent years, there's been a notable shift of professionals transitioning from traditional banking roles to positions within fintech firms.

In this blog post we’ll dive into the details and evaluate the reasons behind the big move. Keep reading until the end for some expert advice if you are looking to make the transition yourself!

Who is migrating?

According to LinkedIn workforce migration data and industry reports, the following positions are seeing the highest movement:

Product Management

• Many banking professionals with experience in structuring financial products and services are moving into fintech product management roles.
• Fintech firms are actively hiring former bankers to develop digital banking products, trading platforms, and embedded finance solutions.

Risk & Compliance

• Regulatory expertise from traditional banking is in high demand at fintech and crypto firms, where navigating compliance in a rapidly evolving landscape is critical.
• Former banking risk analysts and compliance officers are moving to fintechs to manage AML (Anti-Money Laundering), KYC (Know Your Customer), and fraud detection.

Payments & Digital Banking Specialists

• Professionals with experience in payment processing, transaction banking, and card issuing are highly sought after by fintechs focusing on payment innovation.
• The rise of open banking and real-time payments is creating demand for former banking payments professionals.

Data Science & Quantitative Finance

• Quantitative analysts and data scientists from banks are increasingly joining fintech firms to work on AI-driven trading algorithms, alternative credit scoring, and risk modelling.

Wealth & Investment Advisory

• The rise of robo-advisors and digital wealth management platforms has led to a migration of private bankers and wealth advisors from traditional firms to fintech startups.

Market insights

The migration of professionals from traditional banking to fintech and cryptocurrency firms could be supported by several key trends:

Rapid growth of the fintech sector

The fintech industry is experiencing significant expansion. According to a report by Boston Consulting Group, financial technology revenues are projected to grow sixfold from $245 billion in 2023 to $1.5 trillion by 2030.

This substantial growth creates numerous opportunities, attracting professionals from traditional finance sectors.

Competitive compensation packages

Fintech firms often offer attractive compensation to lure top talent. Mid-level professionals in fintech can earn base salaries ranging from $100,000 to $200,000 USD, with potential bonuses and equity increasing total compensation. The equity component can be particularly lucrative in successful startups.

Increased adoption of fintech services

The widespread adoption of fintech services indicates a robust market, leading to job creation within the sector. Approximately 75% of fintech companies hire staff and create job opportunities related to fintech.

This demand for talent encourages professionals from traditional banking to consider roles in fintech.

Technological advancements and innovation

The rapid advancement of technology in financial services offers professionals the chance to work on innovative projects. The integration of technology in areas such as digital banking, blockchain, and artificial intelligence presents new challenges and opportunities that are appealing to those seeking dynamic careers beyond traditional banking roles.

Why professionals are making the move

• More innovation & impact: Fintech firms are known for agility and cutting-edge innovation. Unlike traditional banks, which often have rigid structures, fintechs give professionals the chance to directly shape new products and services.
• Better work-life balance: Many fintech and crypto firms offer flexible working arrangements, remote options, and a less hierarchical structure compared to traditional banking.
• Faster career growth: With fewer layers of bureaucracy, professionals can move into leadership roles faster and take on a broader range of responsibilities.
• Equity & compensation upside: While base salaries in fintech can vary, stock options and performance bonuses can make compensation highly competitive.

How you can make the transition

Moving from traditional banking to fintech or trading requires a strategic approach. Here’s how you can position yourself for success:

Optimising your CV

Your CV should highlight the impact you've made in previous roles and how your skills align with fintech’s fast-paced, tech-driven environment. Focus on:

• Quantifiable impact: Showcase achievements with numbers, such as cost savings, revenue growth, or process improvements.
• Innovation & adaptability: Emphasise experience with digital transformation, automation, or regulatory change.
• Transferable skills: Highlight skills in risk management, compliance, data analysis, and strategic planning, all highly valued in fintech.

Networking with fintech leaders

Building the right connections can open doors to new opportunities. Consider:

• LinkedIn engagement: Follow fintech thought leaders, recruiters, and hiring managers. Engage with posts and share insights to boost visibility.
• Industry meetups & events: Attend fintech networking events, hackathons, and panel discussions. Events like Finovate and MoneyLIVE Summit offer great exposure.
• Referrals: Many fintech firms prioritise employee referrals. If you have ex-colleagues who have made the transition, reach out for insights and introductions.

Upskilling to stand out

Fintech firms value professionals with knowledge of emerging technologies and digital finance trends. Investing in upskilling can give you an edge:

• AI & Data Analytics: Courses in Python, machine learning, or financial modelling can help you transition into data-driven fintech roles.
• Blockchain & Cryptocurrencies: Gaining expertise in digital assets, smart contracts, and decentralised finance (DeFi) can make you attractive to crypto firms.
• Payments & RegTech:  Understanding PSD2, open banking, and compliance technology can be valuable in fintech risk and compliance roles.

Work with a specialist in fintech recruitment

If you’re looking to move into the fintech sector, a recruitment agency can save you valuable time and energy in your job search. Instead of sifting through countless application forms and signing up to different careers portals, you can work with a dedicated consultant who will bring suitable roles to you.

As specialists in fintech recruitment, Hunter Bond consultants are best equipped to support you with your search, offering:

• Access to the best roles: With an extensive network of top-tier clients, we can provide access to a range of opportunities, many of which aren’t advertised to the general public.
• Personalised service: Our consultants take the time to understand your unique skills and experiences and will only present you with roles that align with your career goals.
• Industry expertise: We are deeply embedded in the fintech space – a Hunter Bond consultant knows the industry inside out and can guide you through what you need to know before you apply.

The migration from traditional banking to fintech and crypto firms is more than just a trend - it’s a reflection of the evolving financial landscape. Professionals are drawn to fintech for its innovation, faster career progression, and competitive compensation. With the sector projected to grow rapidly, there’s never been a better time to make the move.

If you’re considering transitioning into fintech, the right strategy - optimising your CV, expanding your network, and upskilling - can set you up for success. And with the support of a specialist fintech recruitment agency like Hunter Bond, you’ll have access to exclusive roles and expert guidance to navigate your career shift.

Are you ready to take the leap from traditional banking to fintech and crypto firms? Check out our live roles below.