All fintech companies are characterized by constant innovation with the latest technological advances. For example, AI adoption in this sector is above 75%, according to figures published in AI Magazine.
But where is the specialized talent? This is one of the big questions, since as all fintech companies strive for innovation, specialized implementation personnel are becoming more valuable and scarce at the same time.
Only 16% of executives today feel comfortable with the amount of technological talent available to drive their innovations, McKinsey noted in a report for which they interviewed 40 executives from various sectors.
If this is the situation your fintech is facing, stay tuned as we discuss how you can address this shortage of qualified technology staff in your industry through IT staff augmentation (https://rootstack.com/en/service/it-staff-augmentation)
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How the lack of tech talent in Fintechs impacts competitiveness and time-to-market
Delays in product development
User needs are constantly changing, and failure to develop Fintech solutions (https://rootstack.com/en/area-expertise/fintech) at the required speed can hinder companies’ competitiveness in an already fierce market. Specialists are needed in key areas such as AI, blockchain, cybersecurity, digital payments, among others.
For example: a delay in implementing a real-time payment system can mean that competitors launch similar solutions first and capture market share. Every week of delay due to a lack of talent represents a market opportunity that others “steal.”
Increased risks in quality and security
Having few specialized technical staff in a Fintech company can compromise the quality of service and products, as well as security. And, in an environment where a high volume of customer and financial data is handled, this is a luxury that companies in this sector cannot afford.
A data breach, for example, could be the death of a fintech company, as customers would lose trust and its reputation would be instantly damaged.
Increased costs and internal efforts
Many companies rush to create products and services on the fly, using whatever they have on hand, without giving due importance to qualified personnel because they lack them and need to resolve issues quickly and by any means necessary. But this strategy can ultimately be more expensive: by creating inefficient solutions, they have to invest even more time and money to fix what they’ve already done.
IT staff augmentation strategy to acquire qualified tech talent for Fintech companies
One of the strategies many companies are implementing to implement Fintech solutions is hiring external software development teams through IT staff augmentation.
Hiring external professionals temporarily or for a specific project allows the team to adjust based on demand, allowing companies to accelerate product development and avoid bottlenecks in critical projects.
You should be clear that this strategy isn’t about disengaging from your project and delegating it to a third party—far from it: it’s about partnering with providers whose teams include certified experts in critical areas such as software development, AI, cybersecurity, and many more.
The advantage of working with an IT staff augmentation provider is that companies have immediate access to the specialized talent they need, which they aren’t finding locally.
Key benefits of outsourcing specialized Fintech talent through IT staff augmentation
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Speed of implementation of new products
With an IT staff augmentation partner, a fintech doesn’t have to wait months to find an AI expert to develop its application, for example. Simply contact the provider, the provider connects you with the expert, and that’s it.
Furthermore, an IT outsourcing provider helps with effective cybersecurity implementation, enabling smoother and faster product development processes and reducing post-sales complaints and issues, as noted in an article in The Fintech Times.
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Access to high-level skills that aren’t available locally
Sometimes companies can start a project and, halfway through, discover that their team doesn’t have the expert they need in a certain technology. For these occasions, an IT staff augmentation provider is ideal, as they can be hired temporarily and scale on demand.
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Reduction of costs and operational risks
One of the attractive aspects of this temporary hiring method is that the company doesn’t have to bear seniority, insurance, or benefits fees, as the contract is hourly, project-based, or resource-based. You pay for what you need, not more.
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Scalability based on project demand
You can scale your IT staff augmentation team up and down based on project needs; hiring is completely flexible.
Optimized costs through IT staff augmentation in Latin America
Hiring IT staff augmentation providers is already highly effective in terms of talent, and if providers are hired in Latin America, cost optimization is one of the biggest advantages.
Fintechs in the US and Europe can reduce development costs by up to 40-50% without sacrificing quality, says an article in Forbes, as countries like Panama and Colombia have highly qualified engineers with extensive experience in fintech technologies.
For fintechs looking to balance budget efficiency with technical excellence, Latin America has become one of the most strategic regions for building larger IT teams.
How to choose the best IT staff augmentation partner for Fintech development projects
Ideally, the following are essential:
– The IT staff augmentation provider must have previously worked developing Fintech solutions, such as digital payment platforms, regtech, or AI applied to finance. This will give you the confidence to delegate your own project to them.
– They must have technical certifications that validate their experience and expertise. Ideally, they should be up-to-date in the Fintech industry, familiar with agile development methodologies, guarantee security throughout the development cycle, and master Fintech technologies.
– Regarding soft skills, the provider must have excellent communication skills and a strong culture of collaboration and teamwork.
– They must also possess a flexible attitude and mindset that adapts to project changes along the way.
Closing the technological talent gap is no longer a luxury: it’s a strategic decision. Fintechs that know how to choose the right outsourcing partner turn scarcity into an advantage, accelerating innovation, reducing risks, and always staying ahead in a competitive market.
