When it comes to Fintech, America undoubtedly tops the bill. The USA, known for its well-established financial services industry, as well as a robust entrepreneurial culture, has the largest share of FinTech investment in the world.

Out of 2,786 global deals worth US$68.6 billion in 2022, a staggering US$61.6 billion was accumulated across 2,222 deals in the US. Home to world-leading FinTech hubs like Silicon Valley and NYC, it’s estimated that America will account for over 62% of the global FinTech sector by 2028.

Here we delve into the current market trends shaping Fintech’s global leader, the USA. For a broader picture, check out our comprehensive 2024 North America Salary Guide.

A large, diverse consumer/digital market

With a population of more than 330 million, the US comprises individuals and businesses with a wide range of financial preferences and requirements. Numerous factors, including the COVID-19 pandemic, have hastened shifts towards digital activity for most of this population. Remote and contactless payments are now conventional, and companies must match the ever-growing demand in a Digital Payments market expected to amount to 320.20m users by 2027. The implications for hiring and talent are:

The market is thriving

Due to the escalation of consumer uptake, it’s predicted that by the end of 2023, the largest FinTech market in The States will be Digital Investment, with an AUM of US$51.04bn. Talent will continue to be sought after in this highly competitive field.

Innovation is central to hiring strategy

FinTech businesses need to generate an abundance of customer-centric solutions to cater for every need of an increasingly digital-savvy population. For instance, credit cards and mobile wallet payments and apps such as PayPal are more popular in the US than elsewhere. This means hirers need to ensure they’re able to continually innovate and improve these kinds of digital services with talent that is passionate about innovation.

Open banking is gaining momentum

Open banking is a trend we’re seeing across the globe, but the USA (along with Sweden, the UK, the Netherlands, and Singapore) is described as a ‘pioneer’ for the phenomenon. New digital banking technologies are providing Americans with lower loan rates, higher savings rates, and tools to manage their finances more efficiently than ever. However, reports of users encountering complications when it comes to the practicalities of using open banking, present opportunities for businesses to outperform the competition when it comes to offering improved experiences. The implications for hiring and talent are:

Innovation will be crucial

Companies will be searching for creative technical experts who can help them innovate and advance their open banking technologies ahead of challengers.

NYC is a focal point

Despite Silicon Valley being the nucleus of FinTech in the USA, New York is materialising as a magnet for open banking start-ups and investors. It’s already home to Ficecal, Koxa, Verestro, DIRO, and Vments to name just a few.

Artificial intelligence advances at pace

Artificial Intelligence is revolutionising just about every industry – FinTech is no different. In the USA, AI is being deployed to enhance fraud detection, automate customer service through chatbots, personalise financial advice, and optimise investment strategies. Machine learning algorithms analyse vast amounts of data to identify patterns, detect anomalies, and make data-driven decisions, ultimately improving the accuracy and efficiency of financial services. AI in the US is valued at 100 billion dollars and is expected to grow close to two trillion dollars by 2030. The implications for hiring and talent are:

AI salaries will climb

The demand for AI expertise in the USA has resulted in salaries swiftly rising and there is no sign of them slowing anytime soon. Employers need to stay informed on current rates and benchmark their own offerings.

Competition for AI talent will be even higher

To remain competitive in the FinTech landscape, employers must be willing to offer competitive packages. To attract and retain AI talent, hirers should proactively work on benefits, flexible working policies, EVP, culture, and progression routes.

New specialisms are emerging every day

As the core of the FinTech industry, it’s no surprise that the US is responsible for continuously cultivating new specialist areas. Wealth management and insurtech are both examples of fields recently entering the FinTech arena. Features including voice-activated transactions, biometric authorisation, real-time financial data, and cryptocurrency integration are all disrupting the sector. Blockchain is also being adopted by USA FinTech companies to increase transparency, streamline processes, and reduce costs. The implications for hiring and talent are:

Training and developmental opportunities are essential

When markets shift as quickly as FinTech, it’s important to attract and retain staff by offering developmental opportunities. Not only will providing professional training ensure your business is compliant and at the forefront of new technologies, theories, and methodologies, you’re more likely to be an employer of choice if you can provide further training.

Cybersecurity is more essential than ever

As the FinTech industry continues to grow, ensuring robust cybersecurity measures becomes increasingly crucial. This is particularly important in the USA’s hive of FinTech activity. With the rise of digital transactions and the storage of sensitive financial information, protecting customer data from cyber threats is of paramount importance. FinTech companies are investing heavily in cybersecurity technologies, such as advanced encryption, biometric authentication, and real-time fraud detection systems, to safeguard customer assets and maintain trust in the digital financial ecosystem. The implications for hiring and talent are:

Specialist cyber skillsets are key

Cybersecurity skills for FinTech companies are fundamental. The repercussions of cyber-attacks are unimaginable, so in a country like the US, where FinTech advancements are happening at unparalleled speed, and consumer uptake is rising, companies must invest in the relevant skillsets for keeping them safe and compliant.

The USA’s FinTech industry is witnessing remarkable advancements driven by market trends that are revolutionising financial services. These trends are enabling greater financial inclusivity, more personalised services, enhanced security, and improved efficiency throughout the entire financial ecosystem.

As the FinTech landscape continues to evolve, embracing these trends will be essential for both businesses and consumers to stay ahead in the rapidly changing world of financial technology. If you’d like to know more, download our full 2024 North America Salary Guide.