Faibish: 10,000 FinTech Jobs Coming

Panel discussion after Professor Doron Avramov paper presentation

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.

Estimated deals (public knowledge) and value. Spike in 2014 brings hope for the next few years.
Estimated deals (public knowledge) and value. Spike in 2014 brings hope for the next few years.

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:

FinTech exits by quarter shows actually a steady linear number at around 50 per quarter
FinTech exits by quarter shows actually a steady linear number at around 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.

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