LONDON, 25 February 2021 — This year will see a wider range of salary outcomes as economic recoveries for Financial Services and Fintech companies differ greatly following the challenges of 2020, according to Willis Towers Watson’s latest Fintech and Financial Service sector pay reports.*
A detailed study of the pay mix in the Financial Services and Fintech sectors shows that, while the two sectors are aligned on the proportion of pay that is provided in the form of base salary, FinTech companies offer a higher proportion of pay to long-term incentives (LTIs).
For mid-level professionals at Fintech companies the LTI proportion can be as high as 41% in some cases, compared to just 11% for those at the same level in Financial Services firms.
“No longer the new kids on the block, many Fintech firms now have an established market presence, high growth potential and significant pay budgets at their disposal.”
Paul Richards
Data Services Leader EMEA
Paul Richards, Data Services Leader EMEA, Willis Towers Watson, said: “Fintech and Financial Services firms have been battling for talent across a similar set of roles for some years. No longer the new kids on the block, many Fintech firms now have an established market presence, high growth potential and significant pay budgets at their disposal. This, along with a lower number of roles under pay scrutiny and regulation, and a start-up culture focused on share-ownership as opposed to cash-based pay, has led to significantly higher LTI opportunities at many Fintech companies, which could be more attractive to potential talent.”
The study also provides some insight into the most desirable skills in each sector, based on the highest salaries and pay rises compared to other roles at a similar level.
For traditional Financial Services organisations the big focus is on technology skills, such as DevOps (6.3% median pay increase) and User Experience (up to a 4.8% increase) roles, that are relatively scarce and in competition with big technology companies and Fintech firms for talent. However, for the Fintech sector, due to increasing regulation and public scrutiny, there is an increase in competition, and pay, for regulatory and compliance roles (3-6% median increase, depending on the role).
Overall pay rise budgets for Financial Services and Fintech firms also differed in 2021. Over half (54%) of Financial Services firms are planning pay rises in the 0-2% range this year, of which one-in-10 (11%) are planning a pay freeze. Only 39% of Fintech firms are planning to offer these more modest pay rises, with 8% freezing pay.
At the higher end of the pay scale, only one-in-20 (5%) of Financial Services firms are planning to offer pay rises of over 3%, whereas the proportion of Fintech companies offering the same is triple that, at 15%.
Richards said: “In 2020 both Financial Services and Fintech pay budgets were heavily weighted towards lower and mid-level roles with almost universal base pay freezes for the top five levels of seniority (global grade levels 16-20).
“This dynamic is striking and it will be interesting to see how the recovery from the pandemic and effect of Brexit will affect the pay at the various levels within the industry, following the disruption to business models and revenue seen by many companies.”
*Willis Towers Watson collected 2020 pay data from 317 Financial services and 94 FinTech companies, covering over 23,000 roles, between March and July 2020. In addition, around 150 companies were surveyed about their planned pay rise budgets for 2021, in November last year. For more information on Willis Towers Watson pay surveys, please visit www.wtwdataservices.com
Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 45,000 employees serving more than 140 countries and markets. We design and deliver solutions that manage risk, optimise benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential.
