It's tougher than ever to be in the banking industry. Like digitally driven pied pipers, disruptive startups use fintech to lure customers away from brick and mortar banks into the cloud, never to be seen again. To face off against fintech startups, who have billions of venture capital dollars behind them, traditional banks are ramping up their technology to remain contenders in the marketplace. That's good news for
Banks are taking notice of FinTech disruptors like Pay Pal, Venmo and USAA because their customers are turning to these solutions. More than half of respondents in a 2016 survey had heard of these alternatives, and 46 percent already had an account. That number has surely grown since then. Now, crowdfunding, peer-to-peer lending, and even AI-assisted services are also competing with the corner bank. Advanced technology and hard skills in programming languages like java form the foundation of new worlds opened by cryptocurrencies as more companies try to surf the Bitcoin and altcoin waves.
Over the past five years, banks have moved from an awareness of FinTech startups to a concerted effort to move the industry forward.
Turning the Tide with Tech Savvy Recruiting
If you're a programmer looking for a change of pace, this could be a great opportunity. However, be aware that most banks haven't yet wrapped their arms around what makes the fintech companies so successful. So, they aren't sure exactly what they are competing against. Millennials and other savvy demographics that use these products can help affect a sea of change in how banks interact with their customers.
So, traditional banks and fintechs are speaking different languages, and the culture doesn't help. What you're up against is a bureaucracy steeped in risk adverse maxims. Risk management comes into play every time a unique idea is born. Layers of management peer, pry and poke at innovation until creativity is virtually stifled. This is good if companies want to maintain tight processes that protect people's money, not so good if they are looking to break the mold.
The solution for these companies is a bold move to not only hire Java developers and other tech
While they are rewarded for preventing things from going wrong, and not necessarily for taking risks, innovation suffers. However, what’s successful in
Who's Leading the Charge?
Some banks are already doing this successfully. CapitalOne, JP Morgan, and Bank of America have been successful in recruiting digital consumers with relatively small changes. The reward? These banks are snagging market share from digital and traditional competitors.
In 2016, JP invested $9.5 billion in their technology base and earmarked $300 million just to innovate their asset management products. As a result, JPM now has the most mobile banking customers, and their mobile app receives a 4.7 rating in App Store. Other companies are forming alliances with JPMorgan to compete with
- OpenFin provides infrastructure software that enables financial institutions to design branded trading apps. JPMorgan poured $15 million into OpenFin in 2017.
- Bill.com has partnered with JPM to enable customers to receive and send e-payments as well as invoices. JPM ponied up $100 million to Bill.com for the capability.
- Boston-based LevelUp has a mobile server to order ahead. JPMorgan partnered it with the Chase Pay so that Chase customers can now pay and order ahead at various QSRs in Boston. This convenient service saves people a lot of time and helps restaurant stay organized. JPMorgan led $50 million investment in LevelUp.
- Stripe is a $9.2 billion payment processing application whose revolving credit facility is backed by JPMorgan and other banks.
Banks Call for Tech Workers Such as Java Developers
Banks are known for a rigid structure, but tech people are creative and need a less constricted work culture in order to thrive. A small change that gains big points is relaxing the dress code. Companies need to create an atmosphere where intelligent people feel their contribution counts and where they feel challenged.
Pay can also be a sticking point, but banks are up against a very competitive salary expectation by tech workers. In order to defect from their current job, the price and position have to be just right.
This is new territory for banks and getting hiring approval from HR executives that aren't aware of the value in the marketplace is a challenge. Unlike the fintech newcomers, traditional banks have tons of data. This makes a merger possible based on mutual need. A merger also helps to attract tech employees. Some developers move out of tech to banking because they want to reach people who don't have access to financial services. Banks have the infrastructure to solve bigger problems faster than startups constrained by their investor capital.
Attracting Tech Workers
Banks that are serious about connecting with java developers and other talent show a sophisticated understanding of the existing technology. To convince prospective employees that there's room for innovation in a traditional financial institution, you have to show them a plan. For example, JP Morgan is working on concerted campaigns to draw in more tech talent. They are making moves to change how they use technology to innovate.
So, out with the old and in with the new. It's certainly a win for java developers and bank customers.
Looking to Get Involved?
If you are in tech currently, or just love coding Java, consider a career in a banking institution that invests in technology, like JP Morgan. There are plenty of new things to learn in the financial sector, and you'll have access to data that is unlike what you are used to at a strictly tech company. Search our jobs for developer roles that are open near you. We'd love to get you set up with a job that challenges you and surrounds you with the best, while still having that tech atmosphere. Click below to make a move.