The fintech industry, amongst many others, is facing a leadership crisis. Rapid changes are reshaping the landscape. Blockchain, AI, regulation changes and open banking are all playing a role. There is increasing pressure on leaders to adapt to bring back stability and ‘trust’ among their staff. During the recent cost-cutting phase, leadership and, in particular, people development took a back seat. Staff reductions were the priority and these often extreme cuts have left those remaining feeling uncertain of their future.
A ‘steadier’ funding landscape has been predicted. This means that companies are expected to start hiring again. They will likely return their focus to attracting and keeping top talent. Now that the market is shifting, companies must rethink their approach towards their staff management. Retaining employees and meeting their needs will need to come first if businesses look to build again.
One major gap is the lack of ‘human-centric leadership.’ This kind of leadership builds trust and re-engages employees. It’s about empowering people and helping them grow. Leaders should make sure their teams have the support they need to thrive. Some fintech leaders are already setting a great example. Here are a few who are making a difference:
The Leader-Manager
Frances Edwards, COO and Global Fintech Operator, describes herself as a “value-based leader.” She works for Avantgarde, a digital-first crypto asset management firm. She says that in today’s resource-constrained environments, growing without mass is paramount. Therefore she believes that leadership roles will evolve to require “leadership and management skills coexisting” within a single individual. Without effective management, leadership can become “a lot of talk and no action.” Leaders need to be able to strategize and drive execution.
She states that in today’s “flattened corporate hierarchies,” leaders need to be able to set vision and purpose. They need to combine this with management skills that foster collaboration and empower individuals to work cohesively towards a common goal. Being a leader with strong management skills is especially important during times of uncertainty, change, or challenge. In these situations, people require a clear leadership vision to align their purpose to, but also the “reassurance of a management force visibly present and spearheading execution.” Frances believes that “actions speak louder than words” and sees this as a crucial foundation on which fintechs will begin to grow again this year.
The Company Mission, The Personal Mission
Jovi Overo, CEO at Vault believes leadership means constantly connecting people to the company’s mission. Vault is a crypto-friendly secure banking platform. Connecting missions starts with understanding each person’s unique journey. He says it’s crucial to create a space where people feel comfortable speaking up and “voicing their opinions.” Only then can leaders learn their team members’ personal missions. Knowing what motivates people and understanding their individual situations helps build stronger relationships.
Several blogs from 2024 discussed the return of ‘mission-led’ fintechs. There is a particular focus on “how purpose drives profit.” This applies to investments, customer attraction, products, brands, and, ultimately, revenue. Jovi takes this further by connecting the mission to the people who are building the business and the impact it can have on their lives.
Jovi encourages creating an environment where team members see how their work makes a difference. When people understand the impact of their efforts, they feel more engaged. Encouraging curiosity and fostering an “impact-driven environment” helps build a committed, united team working toward meaningful change.
A Culture of Accountability for Failure and Success
Jo Wensley is Engineering VP at Smarsh, a digital communication software development company. She believes good leaders “take responsibility for failures as well as celebrating successes.” They must hold themselves and others accountable for results, too. Accountability keeps the vision clear and makes sure everyone works toward it. She says that in addition to vision, communication and accountability, empathy is key to leadership. It drives technical excellence and sparks innovation. No one can achieve this alone. Leaders should understand others’ values and perspectives. This builds a culture of “psychological safety where people can do their best work.”
She encourages a “marketplace of ideas,” where the best idea wins, no matter the source. Once everyone understands both the plan and the consequences, the team moves forward. This approach ensures accountability for the success or failure of ideas. The group learns and grows from both outcomes. Everyone must be part of the journey and understand the strategy’s consequences.
Supporting Managers
The recent wave of staff cuts across the industry has taken a toll on leaders. Many feel too stressed to continue. Through the funding downturn, they’ve had to manage hitting growing targets on shoestring budgets. At the same time, they must lead, inspire, upskill, reach goals, and adapt to new ways of working. It’s become overwhelming and far too many are questioning their future. Studies show that 40% of leaders are stressed and have “considered stepping down to improve their well-being.”
Sung Hae Kim, Chief People Officer at Kueski, believes in building better support systems for managers. She’s passionate about human behavior and the need to feel accepted and part of something. Kueski is the largest online consumer lender in Mexico, and its culture doesn’t just value differences; it actively celebrates and supports them. This mindset has led Sung to develop innovative people practices.
Kueski invests in helping managers “coach, give feedback, and build skills.” This focus helps individuals grow and strengthens the business. To ensure fairness, Sung established a pay structure and career path for all staff. Her centralized team has visibility into compensation across the organization and ensures fairness. When people reach a milestone, their pay matches others who have achieved the same. This system promotes equity, transparency and ultimately builds trust.
The fintech industry is at a turning point. After a period of uncertainty, cost-cutting, and leadership strain, businesses now have an opportunity to rebuild. Fintech companies should embrace ‘human-centric’ leadership and build trust amongst their staff. This will create stronger, more resilient teams to face future challenges. Setting up the right support for ‘leader-managers’ will help them drive businesses forward. It will also empower their teams for a stronger future. These factors will amplify and help build a strong industry.
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