Fintech Companies in Argentina Generate 35,000 Jobs while the Number of Bank Workers Decreases

The technological and commercial transformation of the financial sector that Argentina has witnessed in recent years, enhanced by the Covid-19 pandemic, impacted the employment of the two large groups of companies in the system: traditional banks and fintech companies. And in terms of jobs, both sectors have been registering movement in opposite directions.

According to a report from the Argentine Fintech Chamber, the technology sector applied to finance already has almost 35,000 employees in its different verticals (means of payment, credit, cryptocurrencies, investments), with an increase of 9.9% in the last year. Since 2017, fintech companies have multiplied their staffing by approximately 5, as the sector has grown and companies have emerged. The study covered 343 companies.

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In the last 7 years, traditional banking reduced staff payroll by 11%

In the same period of the last 7 years, traditional banking went from having 109,517 employees to having 97,908 in September 2023, according to the latest data available from the BCRA, which marks an 11% decrease in the number of workers.

While new companies in the financial sector add personnel in net terms, banks have given up workers. In the system they highlight that the reduction of the traditional banking workforce does not have to do with mass layoffs or closure of entities but with the transformation of the business.

The expansion of digital channels to the detriment of service in branches changed the map of financial employment, with the impetus of the pandemic but also of new generations who no longer want to do in-person procedures of any kind.

On the other hand, the entire system has a lot to grow if Argentina manages to get on track in financial terms and to transactional businesses, payments and collections, the credit that today is conspicuous by its absence is added. And this growth will have a correlation in qualified employment.

Behind these numbers also lies a common point of contention for companies in the financial sector: union framing. The Banking Association always demands that fintech employees join their ranks, since they are not banks but, at the end of the day, they provide financial services. In turn, fintech companies reply that the traditional job categories of bankers are obsolete and do not adjust to the reality of their activity, where there are developers instead of tellers. According to the fintech chamber report, one in three employees in the sector works in the IT area.

This demand for technological positions for fintech companies remains active and represents 23% of the positions that the sector plans to fill in the short term. The most in-demand positions in the Technology area are Back End, Full Stack and Front End Developers.

The report “ Fintech Employment Survey 2023 ” states that in 2023 “the fintech sector experienced a growth of 9.% in employment, which demonstrates the vitality and dynamism of the industry.” With a total of 34,350 employees at the end of last year, the companies incorporated more than 3,000 workers.

In 2023, the fintech sector experienced a growth of 9.% in employment, which demonstrates the vitality and dynamism of the industry

In the last seven years, the compound annual growth of employment in the industry has been 40.6%, going from just under 7,000 direct jobs to more than 34,000 at the end of last year.”

The report also highlights an important participation of women within the sector’s personnel, which increased by 3.2 percentage points compared to 2022: “The balance for 2023 showed that 45.2% of the positions were occupied by women and 54. 8% by men. The participation of women in leadership roles reached 36.5% of positions, above the world average (33%) and regions such as the United States and Canada (32%) or Europe (30 percent).”

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(Featured image by Julianza via Pixabay)

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First published in infobae. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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