As the banking and financial services industry accelerates towards digitization, a new survey by BFSI-focused CXO search firm Venator Search Partners reveals that Generation X will be at the forefront of leadership in fintech companies. Bank-fintech partnerships are seen as the future of the industry, with consensus growing around this view.
According to the survey, Generation X, aged between 35 and 50, accounts for 51% of leadership roles globally. However, while Gen X is expected to dominate the leadership positions, millennials are also increasingly climbing the leadership ladder. Millennials now represent the largest segment of the workforce, with many quickly ascending into leadership roles faster than any other generation.
A comprehensive look at the fintech space shows that the majority of fintech companies have been founded in the last 5 to 7 years. The survey also highlights that most founders of these companies belong to Gen X or the millennial generation. However, this rapid rise of young entrepreneurs has created a mentorship gap, leaving an opening for senior professionals in the banking and financial services industry to step in and provide guidance.
With the growing needs of the fintech industry, seasoned BFSI professionals are expected to take on advisory roles or join boards of directors in fintech companies. This collaboration between the ambitions of young fintech founders and the experience of senior BFSI professionals is seen as crucial for the success and growth of these organizations.
While traditional banks remain a stable option for many BFSI professionals, fintech and digital lending companies offer an attractive alternative. Many senior professionals are being drawn to fintech due to higher stock options and the chance to mentor the next generation of industry leaders. This shift is also motivated by the desire to be part of the digital transformation sweeping through the sector.
“We as headhunters see significantly higher cash compensation that the Fintechs offer compared to traditional banks. That’s possibly the only effective way of attracting capable talent. Often such offers from Fintechs are more than 50% higher on cash compensation compared to private sector banks,” said Deepraditya Datta, Founder, Venator Search Partners.
The survey also sheds light on shifting industry trends. As industries evolve, there is a growing demand for faster access to credit rather than a focus solely on rates and payments. This shift has led to a surge in unsecured retail lending, which is predicted to become the key growth driver for fintech.
The survey involved over 60 respondents, including CEOs, secured and unsecured lending professionals, and HR Heads from leading NBFCs, banks, and fintech companies. The results underscore the importance of collaboration between fintech founders and seasoned BFSI professionals, offering insights into the future trajectory of the digital financial services sector.