5 Reasons Why FinTech Companies Are Betting Big on Nearshore Resourcing

FinTech companies are no strangers to staying ahead of the curve.

Disrupting traditional models in search of better solutions is the name of the game — and with 56% of traditional financial institutions now putting disruption at the heart of their strategy, it is clear that the FinTech industry’s innovation efforts are not flying under the radar.

Thanks to a healthy appetite for tech investments and a vibrant startup and scaleup landscape, the UK is a global leader for FinTech innovators. But with more than 1600 FinTech companies already based in the UK, and estimates suggesting this figure will double by 2030, attracting top talent is becoming more difficult day by day.

According to a report by Innovate Finance for the Department of International Trade, over 60% of FinTech businesses consider attracting talent to be their greatest challenge, ahead of consumer adoption and sourcing investment and funding. This is due in part to skillset shortages and cost considerations, but also because of industry-specific security concerns.

Traditional talent sourcing methods have a tendency to slow things down. This poses a threat to the completion of time-sensitive projects required to maintain a competitive edge in a rapidly growing market.

It comes as no surprise, therefore, that FinTech companies across the UK are searching for alternative solutions to resourcing. Working with a trusted nearshore delivery partner like BrightBox is proving to tick all the boxes.

Here are five reasons why FinTech and financial services companies are betting big on nearshore resourcing in 2021 and beyond.

1. Agile resource sourcing

Developing solutions that offer consumers greater financial freedom takes a wide range of skills. Leading FinTech companies are constantly on the hunt for specialist developers, data scientists and software engineers who can deliver cutting-edge technological advances.

But sourcing, onboarding and training new talent takes time — which is the one thing that’s lacking in a market where innovation happens at lightning speed. Skillset gaps need to be filled as quickly and efficiently as possible in order to deliver time-sensitive solutions straight to consumers. This is why firms looking to maintain and increase their market share are already viewing flexible resourcing options as a necessity rather than a nice-to-have.

Working with a nearshore delivery partner means that highly-skilled associates are always on standby, ready to augment and support the core team when needed. Teams of tried and tested associates are hand-selected to fill essential skillset gaps. In essence, nearshore resourcing offers all the advantages of an increased headcount without the risks of getting roped into long-term contracts. Key to this is not only being able to ramp up quickly, but also ramp down at pace as well, which BrightBox offers to all of its clients.

2. Future-proofing for incoming financial regulations

Emerging technologies often outpace regulations that govern established financial institutions. While the UK FinTech industry enjoys a clear, structured and applicant-friendly regulatory environment, compliance standards and regulations are expected to tighten as time goes on.

“FinTech thrives where capital, tech and talent connect with regulators and government,” states Charlotte Croswell, CEO at Innovate Finance. In order to stay within the lines and avoid running the risk of fines, FinTech companies should take a proactive approach to corporate governance.

This includes securing adequate staffing and protections in case operations need to be ramped up or down with very little notice due to regulation changes. Having a trusted nearshore delivery partner on standby can ease the pressure on your team and ensure transitions run smoothly.

3. Protecting intellectual property

FinTech companies are continuously navigating a highly competitive landscape. The playing field is level for established financial institutions and new startups alike, with each one competing for an edge in the market.

Even the smallest difference in code, user experience or app features can make or break a consumer’s decision to convert. That’s why any financial technology company’s greatest assets lie in its intellectual property. This includes patents, trademarks, designs, code, R&D solutions, and closely guarded trade secrets.

To minimise the risk of infringement and protect investments made into research and development, FinTech businesses of all shapes and sizes should exercise caution when onboarding new talent.

Developing the right internal processes, such as non-disclosure agreements, is a great place to start safeguarding your intellectual property. But when it comes to bringing in outside help from multiple third-party contractors, the risks start to rise.

Working with a trusted long-term delivery partner like BrightBox is a much safer option. Our nearshore partners have a proven track record in delivering top-quality resources. Each associate is screened, vetted, and versed in confidentiality clauses. Clients also have the option to implement any internal process and/or documentation they wish prior to project kick-off, just as they would with any other remote worker.

And most importantly, clients can rest assured that they retain all intellectual property following project completion.

4. Securing sensitive data

One incident of data misuse can compromise the trust of an entire organisation. In a world of growing concerns about consumer data protection, no company can take data security lightly.

Due to the highly sensitive nature of financial data, FinTech companies are under exceptional scrutiny in the public eye.

Financial services firms go to great lengths to develop precautionary measures against data breaches, fraud, and cybercrime. This includes developing cutting-edge security layers, rolling out consumer awareness campaigns, and of course, implementing staff protocols to help protect sensitive data from falling into the wrong hands.

Remote workers are no exception to the rule — but accessing sensitive data outside of secure company premises and devices poses a risk that FinTech companies cannot afford to take.

The possibility to implement your own security procedures is a highly compelling benefit of working with a trusted delivery partner. Essentially, nearshore associates work as an extension of your in-house team, meaning that all sensitive data stays within your existing ecosystem, where you can monitor and protect it best.

5. Delivering a cultural fit

As the modern workplace continues to evolve, company culture is quickly becoming an essential consideration for companies and consumers alike.

Having a strong company culture fosters a sense of belonging, solidifies brand identity and helps to attract and retain top tier talent. Since most FinTech companies are relatively young organisations in the process of forging their brand reputation, company culture ranks high among their priorities.

It is no secret that outsourcing significantly trims down the costs of research and development. Competitive day rates, along with reduced costs associated with in-house resourcing, make outsourcing an attractive option. But continued efforts to build and maintain company culture can raise concerns about cultural fit.

Nearshore resourcing offers a unique opportunity to increase company headcount with ease — and without compromising on culture.

With the aid of technology, jumping through communication hurdles is easy. Geographical proximity means that teams work to a minimal time zone difference, and working times can be further adjusted to align with your own. Associates speak excellent English, and are fully accessible via email or video conferencing whenever you need them — just like your other remote workers. And because associates enjoy a healthy work-life balance and competitive compensation, the staff retention rate is much lower than average.

As an added bonus, the opportunity to work with a diverse group of developers brings fresh perspectives to the drawing board and encourages outside-the-box thinking.

In summary, nearshore outsourcing is an agile workplace solution that offers all the benefits of expanding your talent pool, minus the risks. This makes it the perfect solution for FinTech companies looking to take on ambitious projects that make their mark in this highly competitive landscape.

BrightBox is a UK-based managed delivery partner that has a heritage in FinTech and Financial Services. We are in what it takes to deliver in this heavily governed and regulated industry, meaning that your company can focus your efforts on high-level strategy knowing that you have a trusted delivery partner to support you on your journey.

We partner with over 2000 trusted nearshore specialists in Poland, Belarus, Turkey and Greece to deliver nearshore teams that extend in-house capabilities and help cater for skillset gaps. Our job is to provide an assurance layer between clients and teams to minimise risk, maximise outputs and ensure high-quality service throughout.

Click here to find out how our nearshore teams have solved talent sourcing headaches for FinTech and financial services companies across the UK.

Stuart Houghton

CEO - BrightBox Group