These are turbulent times for fintech. Venture funding has dried up; crypto crashed; and fears of a possible recession have led many companies to tighten their budgets and impose layoffs.
But like crowdsourced data fromniveaus.fyishows that turbulent times have not curbed fintech's tendency to pay out high compensation – even for entry-level software engineers. Here's a full overview of some prominent fintech companies and what they pay:
Traditional financial firms have been rethinking their own math lately, thanksbank collapsesand other issues; Huge assets and strict regulations do not necessarily guarantee stability. Still, many tech professionals are intrigued by the idea of building software and services for a major bank or hedge fund. How to paysoftware engineersin fintech compared to what their peers receive in more traditional financial companies? Levels.fyi also gives us some insight into this:
At first glance, it seems like there's quite a gap between what fintech and traditional finance companies pay their entry-level software engineers. Keep in mind that crowdsourcing is not always the most scientific way to determine reward data; relative sample size and other factors can greatly distort the final output.
To create some additional points of comparison, we turned to Glassdoor and its estimates of total salaries for software engineers working in the traditional financial sector; Please note that this data includes engineers at all levels, from entry-level to senior:
The Glassdoor data closes the gap a bit, but it still appears that fintech pays slightly more than traditional financial firms, especially when you consider how compensation for software engineers at fintech firms will only increase as tenure increases (from it assuming the company survives, Route). The reason for higher fintech salaries is pretty clear: These cutting-edge companies have to compete for talent not only with the traditional financial sector, but also with entrenched tech giants like Google and Microsoft, who have no problem paying what it takes to to secure. talents they need.
As the financial sector continues to embrace technologies like blockchain,data science, machine learning,and chatbotsthe need for technical specialists will only increase. If you're skilled in a cutting-edge arena, chances are you have a choice of potential positions – whether you want the faster pace of a small fintech startup or the relative safety of a century-old financial conglomerate.
