The Disruptive Power of FinTech

The FinTech ecosystem is young, scarily young, with the earliest market leaders in the sector barely founded a decade ago. Since the introduction of ‘FinTech’, I question if there has ever been any other industry that has emulated the growth, market dominance and disruptive power that Financial Technology Start-Ups have over the last 10 years.

Unsurprisingly, the numbers are staggering. Global venture investment in FinTech grew by 11% to £13.6 billion in 2016, according to data provided by PitchBook. For the first time, China outpaced the US with VC investment, £5.9 billion outweighing £4.7 billion respectively. Potentially more astonishingly, the investment from China was across 28 deals, compared to 650 deals by the US!

Back to the UK and back to November 2016; London based Nutmeg, formally founded in 2012 raised £30m at Series C and a further £12m at Series D less than a month later. At the time their Series C investment was the largest of its kind post Brexit.
Did Brexit effect anything? Of course not; stopping investment in FinTech is like trying to stop a runaway steam train. Whilst the amount invested may not have increased in the UK, the number of deals did, rising from 164 to 173 in 2016 constituting to a 5.5% year-over-year (YoY) increase. You may be asking yourself, how? How are companies founded within the last 10 years creating such waves in the industry, disrupting the larger financial institutions and growing exponentially in a volatile and unpredictable economic climate? Driven by technology with no politics, bureaucracy, red tape or 6 levels of managerial hierarchy to fight through to gain technical approval, these Start-Ups are building user friendly, responsive and scalable applications providing an enjoyable user experience for the modern generation. That’s how!
Embracing a DevOps style culture, adhering to best practices and implementing software craftsmanship techniques, said Start-Ups are able to write code that is clean, maintainable and re-usable at an alarming rate. Using tools like Docker for containerisation and Kubernetes for orchestration, these technology driven companies can build service discovery and microservice based platforms using a mixture of JVM and Functional Programming languages, obeying to the ‘right tool for the job’ analogy.
Couple this with cloud based serverless architectures utilising AWS Lambda and EC2, storing data across multiple NoSQL databases and running real-time analytics to detect intelligent market and consumer trends undoubtedly creates a biased competitive edge in the race for market penetration and dominance. 

Now ask yourself the question, what would you prefer?
To work in an archaic, bureaucratic and slow paced environment associated with some of the larger and more established financial institutions, using a potentially outdated technology stack with software releases as often as England win the Football World Cup. OR… Operate in a technology driven, Continuous Integration and Delivery focussed team, releasing code multiple times a day using the newest and latest technologies with full support of the business to complete PoC’s and R&D to continually push the boundaries of modern day technology. Oh I nearly forgot, all of this whilst dressed casually, with a bunch of competitive share options and an office dog.

With the world of technology that we live in evolving on a daily basis, especially as a Software Engineer, it’s imperative to stay up to date with technology, working on complex engineering projects using the latest tools, technologies and methodologies. Unfortunately, it’s very easy to fall behind in a competitive job market, ultimately putting you at a disadvantage when searching for a new opportunity in the future. The easiest way to stay up to date; embrace the FinTech, Start-Up or technology driven environment.
Here at eSynergy Solutions, we specialise in helping FinTechs and Start-Ups build great technical teams. If you’ve read this article and are interested in exploring the FinTech world, we have a number of amazing opportunities across a range of multi award-winning Start-Ups. Alternatively, if you are looking to scale your Agile team, I’ve got some fantastic case studies I can share with you. Please do not hesitate to get in touch at mark.cryer@esynergy-solutions.co.uk or 020 7444 9609