According to Moran Faibish, Financial Engineer, team leader at Bank Leumi Capital Markets Division, Israel is heading for a big growth in FinTech start-up activity. In a recent Tel Aviv FinTech meetup, he went through the following statistics:
- World wide, FinTech companies make up about 20% of the total hi-tech start-ups.
- In Israel there are currently about 400 FinTech star-ups which employ about 10,000 people. This is only 3% to 5% of the hi-tech total. Hi Tech industry in Israel (6,000 companies employing about 270,000 people).
- Israel is lagging behind in FinTech start-up activity and will catch up.
- In the next few years, there is potential for 1,000 more FinTech companies employing additional 10,000-20,000 technology workers.
- Roughly speaking, there will be 10,000 financial engineering job openings.
Moran Faibish is a bit of a biased perspective. He runs the Israel Financial Engineering Association, a training group to give top ranking programmers, mathematicians and engineers enough specific domain-knowledge to get them into a quantitative finance related FinTech job.
What Moran Faibish and many FinTech insiders are predicting, is a hockey stick growth based on the last two years. 2013 to 2014. FinTech exits are running from $4 Bln to $12 Bln respectively. This jump in exits value is interesting, but you have to wonder if a few companies are the ones contributing to the jump. Checking statistics of FinTech exits on statistica, reveals a slightly different story. For the last four years (2011 to 2014) the number of exits seems to be holding steady at 50 per quarter:
In any case. What Moran and other veteran FinTech financial engineers are saying is actually more compelling: there is a new profession and maybe even a new hi-tech sub-sector. It’s made up of technology experts specializing in quantitative finance. A great deal of complex and specialized skills, if you can demonstrate them, you will have a crack at securing a lucrative job. So take a look at Moran’s material and give him a call.