Will Gen X And Millennials Dominate The Fintech Sector?
While Gen X is expected to dominate the leadership positions in digital organisations, millennials are also gradually occupying leadership roles
Fintech, a word possibly unheard of till a decade ago, has now made its way deep into the financial services space. The incumbents have been bold and have given large banks and non-banking financial companies (NBFCs) possibly a wake-up call. It has not been a smooth upward journey for this new breed, and there will continue to be turmoil with shakeouts in future.
As the banking and financial services industry moves towards the digital era, generation X is expected to be at the helm of fintech companies. There is consensus that bank-fintech partnerships are the future, according to a survey conducted by Banking, Financial Services and Insurance (BFSI)-focused CXO search firm Venator Search Partners. Even globally, generation X (35-50 years old) accounts for 51 per cent of leadership roles.
While Gen X is expected to dominate the leadership positions in digital organisations, millennials are also gradually occupying leadership roles. Presently, millennials represent the largest percentage of the workforce and several of them are climbing the leadership ladder to occupy leadership roles faster than any other generation.
The survey report revealed that a big majority of the fintechs were founded over the last five to seven years. Most of the founders of these companies are Gen X or millennials. Therefore, considering the age of the founders and the scale-up potential of these startups, there is an emerging vacuum in terms of mentorship.
Training And Guiding
Most of the fintechs in India have emerged in the last five years. Naturally, most of the founders are Gen X and Millennials. With the BFSI landscape expected to change with digitalisation, a new variety of fintechs is expected to emerge, the report by Venator Search Partners added. Considering the age of these entrepreneurs, it stated they will need mentorship to grow their companies. This brings forth the question, who will mentor them as they grow?
Based on the industry requirements, senior BFSI professionals are likely to guide the founders of fintechs, most likely by occupying advisory roles in the organisations or as members of the board. A collaboration of the ambitions and technical skills of the young entrepreneurs and the guidance of experienced BFSI professionals will be vital for the overall progress of the organisations.
While traditional banks provide a safe option for several BFSI professionals, leadership roles in Fintech and digital lending organisations can provide an attractive proposition for these senior banking professionals. Higher stock options and an opportunity to mentor the future generation seem to be the primary reasons for experienced BFSI professionals moving to digital lending platforms.
Notably, several BFSI professionals are aware of the immense potential that digital lending platforms possess. Guiding such companies into the future is an attractive proposal for many. It also allows them to be part of the growing movement of fintech.
“We as headhunters see significantly higher cash compensation that the fintechs offer compared to traditional banks. That’s possibly the only effective way of attracting capable talent. Often such offers from Fintechs are more than 50% higher on cash compensation compared to private sector banks,” said Deepraditya Datta, Founder, Venator Search Partners.
Who Will Lead Fintechs In Future- Gen X Or Millennials?
A collaborative report published by Development Dimensions International and EY stated that Gen X (35- 50 years old) accounts for 51 per cent of leadership roles globally. It is usually the millennials (20- 35 years old) who are considered to be digitally savvy but research conducted by Nielsen found that Gen X is as digitally savvy as the millennials.
Notably, Gen X is expected to be at the helm of companies as the industry moves towards a digital era. The report added that Gen X brings the best of both worlds– they are digitally savvy and have accumulated leadership skills not found in millennials. They have several years of experience and the perfect skill set to take over leadership positions in organisations.
While Gen X is expected to dominate the leadership positions in digital organisations, millennials are also gradually occupying leadership roles. Presently, millennials represent the largest percentage of the workforce and several of them are climbing the leadership ladder to occupy leadership roles faster than any other generation.
