More fintech firms than ever are beginning to embrace the transformative potential of artificial intelligence, but how is the technology helping to reshape talent acquisition throughout the sector?
According to a recent survey, as many as
75% of financial firms are already using AI to bolster their operations, a figure that far surpasses the 58% recorded in 2022.
While artificial intelligence has been actively transforming finance with the help of machine learning insights, predictive analytics, and the ability to access vast amounts of unstructured data quickly, its impact on fintech recruitment could deliver a
lasting impact for firms.
Fintech firms have readily adopted AI to enhance decision-making throughout different operational areas, and these technologies are now helping to improve the hiring process. Because of its ability to analyze large datasets, identify patterns, and match
skill sets to roles, artificial intelligence is creating a lasting impact on talent acquisition in finance.
Let’s take a deeper look into some of the key use cases emerging in the fintech landscape and how they’re helping to drive smarter hiring decisions for recruitment teams:
Data-Driven Insights
Artificial intelligence has the power to provide plenty of data insights that can be used to improve
the recruitment process for candidates in highly skilled industries such as fintech. Firms can uncover trends and patterns while leaning on big data insights to shape hiring decisions.
Machine learning (ML) is a subset of AI and helps to
evaluate historical data to predict a candidate’s likelihood of success in specific roles.
For fintech startups that lean heavily on the success of their hires, onboarding the right talent at the best possible time is essential. Predictive analytics can accurately forecast hiring outcomes and workforce needs to improve the quality of hire as a
whole. This helps to bridge workforce gaps and reduce instances of lost productivity throughout teams.
Data-driven insights can also help to introduce internal recruiters to top-performing candidate sources and assess the effectiveness of
hiring strategies in an ongoing manner.
Driving Down Costs
The path to profitability has been an ongoing challenge for many innovative fintech startups, and this requires a nuanced approach to recruitment strategies, as making the incorrect decisions can carry a costly impact.
According to analysis from the World Economic Forum, the use of conversational AI in hiring can lead to an 87.64%
reduction in financial costs compared to traditional methods, and this was mainly because artificial intelligence picked up the slack of initial screenings, reducing manual workloads and helping recruiters to allocate more time towards the most qualified
candidates.
The implementation of AI in the candidate screening process can help more fintechs to streamline recruitment processes by minimizing the time allocated towards vetting resumes and instead directing interview efforts towards the most qualified candidates.
This actively lowers costs and accelerates hiring timelines for a fairer process as a whole.
Identifying Internal Talent
Onboarding fintech talent can be an arduous process when long-standing skill gaps make it more challenging to take on skilled candidates.
Artificial intelligence is working to counter the challenges associated with talent acquisition in the industry by
scanning internal talent marketplaces, employee profiles, and project data to identify the most suitable internal candidates for open positions while proactively suggesting backfills for roles that have been opened up by internal promotions.
This helps to reduce the time-to-fill critical positions and promotes internal mobility, a process that can be particularly attractive when retaining talented employees for longer.
Supporting Market Expansion
Because scaling in fintech means introducing your model to new markets, artificial intelligence can help to hire across regions for the best possible chance of success.
To keep up with local talent expectations, language needs, and cultural dynamics, AI can play a key role in scanning candidate pools and become a driving force in early outreach.
Uniting AI with the Human Touch
Fintech firms still require human oversight, even when deploying mature AI systems to support hiring needs. This can be especially true for handling edge cases, training, and accountability.
The future of AI in recruitment relies on humans to
adopt a supervisory role to assess the quality of artificial intelligence recommendations for hires and to refine hiring models.
In a fintech landscape where margins for failure can be extremely fine, recruiters need to work with the available technology to identify when candidates possess that all-important x-factor and when the AI falls short of expectations in the vetting process.
The Future of AI in Recruitment
Artificial intelligence will transform the fintech sector over the coming years, but one of its most powerful impacts will be in recruiting for skilled positions, where finding the right hire at the right time can be particularly challenging.
The technology can help to provide powerful automation tools that can send talent hunts globally to identify the best possible candidates. With artificial intelligence already enhancing the operations of fintech firms around the world, it’s becoming increasingly
pertinent for more firms to adopt the technology to maintain an edge over industry rivals.