More than half of FinTech businesses have paused the hiring of staff in 2023, claims a new report.

According to a study from distributed tech provider Erlang Solutions, 51 per cent of FinTech firms are expected to put a hiring freeze in place this year while 16 per cent have already implemented a pause. A further third said that they would not rule out the idea.

The report notes that large- and medium-sized firms are more likely to reduce their staffing levels in 2023, with large enterprises nearly twice as likely to close offices or stores than medium-sized FinTechs. It adds that small FinTechs will be most focused on “setting their customers up for success in the event of a deeper recession.”

More than 4,000 staff were laid off across 45 FinTech companies in the first half of 2022, Erlang Solutions said.

Commenting on the study, Francesco Cesarini, founder and technical director at Erlang Solutions, said: “While the threat of global recession brings challenges for fintech companies – and it’s true some may not survive – it’s clear that fintech has really supported consumers over the last few years of global challenges, and that it will continue to do so.”

The annual Exploring FinTech report also looks at trends in the sector such as the impact of AI and regulatory developments.

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