- Automation and digitization are cutting jobs in the global banking sector, but fintech companies continue to generate job demand in Latin America
In 2023, the world’s largest banks cut at least 61,000 jobs. This significant reduction has an immediate precedent in the 140,000 jobs cut during the 2008 global financial crisis, according to estimates from a study by the prestigious Financial Times newspaper.
Latin America is not immune to this global trend. However, in contrast to traditional banking, which has seen a reduction in personnel over the past 7 years, fintech companies are experiencing sustained growth in the region and continue to generate employment in countries such as Colombia and Argentina, the two cases we will analyze below.
Argentina fintech
According to a report by the Argentine Fintech Chamber, these companies currently employ around 35,000 people in this country, distributed in various areas such as payment methods, credit, cryptocurrencies, and investments.
Growth figures
Currently, the Argentine ecosystem presents the following picture:
- 35,000 employees The current number of workers in the fintech sector in Argentina
- 9.9% increase The increase in staffing over the last year. Fintech employment growth since 2017 has multiplied by 5.
- Demand for technological talent 23% of new vacancies in fintech are in the IT area, with high demand for Back End, Full Stack and Front End Developers.
- Greater female participation 45.2% of fintech positions were held by women in 2023, exceeding the global and regional average.
Colombia Fintech
The Fintech Snapshot 2023-2 report reveals a promising outlook for financial technology (fintech) companies in Colombia. This young and highly innovative sector is generating more than 26,000 jobs and contributing significantly to financial inclusion.
Growth figures
- Employment Colombian fintechs generate 26,814 jobs in the country. 45% of companies with between 20 and 249 employees are between 6 and 20 years old in the Colombian market.
- Growth The Colombian fintech ecosystem experienced a 19.7% growth in the last five years, consolidating itself as the third largest in Latin America with 369 startups.
- Investment 28.6% of fintechs are financed with their own resources (bootstrapping) and 46.4% invest more than 30% of their income in technological capital.
- Impact Fintechs are driving financial inclusion, combating financial informality (“gota a gota”) and providing innovative technological solutions.
- Concentration 63% of fintechs are micro-enterprises and 50% are between 1 and 5 years old. Bogotá is the epicenter of fintech activity (68.1%), followed by Antioquia (19%), Atlántico (4.4%) and Valle del Cauca (3.6%).
Outlook
The fintech sector is expected to continue its expansion in Latam, driving demand for technological talent and generating new job opportunities.
Traditional banking will need to focus on its digital transformation and the creation of innovative business models to remain competitive.
Key takeaways:
- The fintech sector is growing rapidly in Latin America, particularly in Colombia and Argentina.
- Fintechs are creating new jobs and driving financial inclusion.
- Traditional banking needs to adapt to the digital age to remain competitive.
