• Talent and government support are key to growth of sector
The study also revealed that fintech firms find talent shortages an acute issue, with over half (60 per cent) saying that there was a lack of start-up or fintech talent in the markets they operate in.
The skills gaps are in technology and software, product management, and sales and marketing. Most of the fintech firms are still relying on personal connections ( 57 per cent) and recommendations (48 per cent) to hire talent.
Respondents also believe that the government can do more to enable the growth of the sector, in particular, increasing tax incentives for angel investors in early stage investment (78 per cent) and introducing policy reforms to make it easier to hire employees ( 78 per cent).
Shankar commented: “Locally, all the Malaysian Fintech firms surveyed say they have trouble hiring the talent to meet the needs and growth of the industry, with 73 per centsaying that there is a shortage of fintech talent in the country.
“The top three areas of talent shortage for Malaysian fintechs are in technology and software (73 per cent), sales (27 per cent) and compliance (27 per cent).
The availability of talent and skills needed to run fintechs at the different stages of their growth can make or break success. Governments play a vital role in shaping a conducive fintech ecosystem that helps to attract and develop the right talent pool, and promotes innovation, collaboration and healthy competition.”
Shankar added: “Southeast Asia offers an attractive play for both fintech players and investors.
“Rapidly expanding economies; young, urban and digitally savvy populations; increasing mobile and internet penetration; and largely under-served smalland medium- sized enterprises and consumer markets have led to the rapid adoption of fintech innovation in the region.
Key to the success of fintech firms are access to customers and technology, and understanding the regulatory and compliance requirements.
“As such, it is important to help bridge the gaps between fintech firms, traditional financial services providers and regulators, by providing local knowledge on the market landscape, and the fundraising channels and government support schemes available.”
In terms of regulation, 45 per cent of Malaysian respondents have expressed that it is either moderate or difficult to conform to local financial sector regulations, while 75 per centhave asked for more support from regulators and policy makers to assist fintech start- ups get off the ground.