When finanz-szene.de did their Fintech job study in February (with the kind support of the personnel consultancy Cribb), the world was a different place. Nearly 1,700 jobs had been advertised by local financial startups at that time (not counting the original Fintech companies like Hypoport), the signs were very positive. What followed is known – namely Corona. The job market froze up, several Fintech companies switched to short-time work, in some places there were redundancies, a few providers even withdrew from the market.
However, that state was not lasting either. After boom and bust the sector is now in a phase in which many financial startups are growing again (cautiously), while others are still suffering from the coronavirus shock. In addition, there are also those that slowed down their pace even before the pandemic. In any case – based on their own Linkedin presences in each case – finanz-szene.de has examined how the number of employees has developed over the past six and twelve months in a good 100 selected German fintech companies.
Is this method perfect? No, certainly not. However, alternative methods of data collection did not necessarily seem more sensible.
Read more about the Fintech sector in Germany and find the latest financial headlines with our companion app Born2Invest.
The main findings regarding the jobs in the Fintech sector
The big job massacre did not happen. For those 70 Fintech companies for whom today’s figures are comparable with those from April, Linkedin has exactly 10,041 employees, almost 300 more than six months ago.
Nevertheless, the real figures could be somewhat worse than those calculated by Linkedin. Therefore, it could rather be assumed that the number of employees has remained more or less the same sector-wide.
At N26, it is clearly down by 136 employees on a 6-month view and by as many as 141 employees on a 12-month view. In other words: N26 seems to have stopped growing even before the Corona crisis.
Sumup, on the other hand, is growing – at least according to Linkedin – almost unstoppably and much more strongly than expected, at least for the corona period.
Except for Getsafe and Friday, the Insurtech companies (Simplesurance, Coya, Ottonova, Element) are almost unanimously among the job cutters of the last months. This may be due to the fact that it was precisely the insurance fintech companies that had increased their numbers in the 1-2 years before in the course of large funding rounds. But it may also be because the “Corona brings the ultimate digitalization push” thesis with regard to the insurance industry is possibly questionable. It also fits that Insurtech companies with the presumed exception of Getsafe have not really found much since Corona (the funding for Element was rather medium-impressive).
One segment that clearly (and unsurprisingly) seems to suffer from the coronavirus crisis is the credit fintech companies. From a 6-month perspective, they are all more or less down, namely Funding Circle, Monedo (in temporary insolvency), Compeon, Auxmoney, Fincompare, Finiata (no more new business in Germany), and Creditshelf. Exceptions are Lendico (whereby Lendico as an ING subsidiary is a special case) and once again Billie.
At the Hamburg-based deposit broker Deposit Solutions, the figures show a strikingly clear downward trend, not only from a 6-month perspective but even more clearly from a 12-month perspective and even more clearly from an 18-month perspective. Currently, the Fintech company has 195 employees on Linkedin, but according to its own website Deposit has “more than 300”, according to verbal information it is “around 300”. The company explained that the delta is mainly made up of out-skilled workers who would work for Deposit from India, for example. The total number of around 300 employees (including outsourced staff) has been relatively constant for a long time, apart from minor fluctuations.
The remarkable increase at Getsafe does not come surprisingly in view of the entrance of Swiss Re on the one hand – on the other hand one would not have expected that from the Heidelbergers 2-3 years ago rather. As always, Naga is to be enjoyed with caution.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in finanz-szene.de, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Nine Ways to Make Your Blog More Engaging
Knowing how to make your blog engaging is one of the most important elements of any smart digital marketing strategy....
UrbanFisio Launches Virtual Assistant to Surpass €1 Million by 2021
The company UrbanFisio had a turnover of $1.03 million (€878,000) in 2020 and expects to reach $1.53 million (€1.3 million)...
How Rating Discrepancies Undermine ESG
According to some experts, companies with higher sustainability scores have better risk management and compliance standards, leading to fewer extreme...
Elon Musk Said Tesla Will Accept Bitcoin Again
After Tesla accepted Bitcoin as a means of payment in March 2021, the company revised the decision again just two...
Trusters’s Real Estate Crowdfunding Fund Raised €7.3 Million in Six Months
In the first half of the year, the real estate lending crowdfunding platform Trusters raised $8.6 million (€7.3 million), almost...
Featured6 days ago
Markets May Have Hit a Temporary Top that Could Continue into September
Business6 days ago
Extended Reality Investment Alert: XRApplied (XRA) Conditionally Approved to List on CSE
Business6 days ago
Why T-Bond Yields Increased in the Past Three Decades
Crypto5 days ago
Canada Continues to Embrace Cryptocurrencies