Thread by @fintechjunkie

1/13: There’s a lot of chatter recently about #Fintechs not wanting to hire people with traditional #Banking backgrounds and traditional #Bankers pointing out how short-sighted this is. It’s a complex topic that’s worth unpacking. 👇

2/13: Like with most arguments, there isn’t a right or a wrong side. Every company is unique and every hiring decision is the net result of a complex series of tradeoffs. Finding the perfect fit for any role is a noble goal to pursue but is unfortunately a fantasy standard IRL.

3/13: Banker Perspective: Fintechs don’t realize how the machinery works. They don’t appreciate how to navigate building products and delivering services in a highly regulated world. They should appreciate how many landmines could be avoided if they just hired experienced people.

4/13: If the Fintechs slowed down just a bit they’d be better positioned to avoid major mistakes (measure twice, cut once). If they built infrastructure in advance of growth they’d avoid customer complaints and regulatory meltdowns. More planning = Less rework.

5/13: Fintech Perspective: People trained in the traditional Banking ecosystem won’t survive our environment. They take too long to make decisions and almost uniformly err on the side of minimizing risk vs. managing risk. Bankers aren't ready for Fintech land. Speed is life.

6/13: Getting to "yes" every day isn't what they've been taught. Managing thin teams and making decisions with incomplete information isn’t how they operate. Re-factoring solutions every time new market information surfaces is uncomfortable. Too much thinking = Too little doing.

7/13: And the differences go well beyond the topics of “risk tolerance” and “speed” and “how work gets done”. They typically bleed into major differences around titles and comp and decision making authority and autonomy.

8/13: I’ve literally talked to hundreds of Bankers over the past 15 years who think they want to make the leap. My rough guess is that 90%+ never do and instead move to another FI of similar size but with a bigger title/more comp or the promise that “it’s different here”.

9/13: A good guess based on my experience is that roughly 75% self-select out when they understand the cash/equity tradeoffs and title/span-of-control differences. The remaining 15% self-select out for reasons like geography, work/life balance, and risk aversion.

10/13: But Fintechs shouldn’t dismiss everyone who has been trained in the traditional Banking ecosystem. Their skills can be transformative if utilized properly. Experience can kink the curve on outcomes. Mistakes can be avoided. Problems can be solved.

11/13: But finding die-hard problem solvers who can operate at the speed of a startup isn’t easy. Interviews/reference checks should focus on determining an individual’s flexibility, comfort with ambiguity, willingness to take risk, and other critical “startup competencies”.

12/13: And Bankers shouldn’t expect to transform a Fintech to their tried-and-true ways. By interviewing, you’re looking to be invited to their dance, not the other way around. Internalize what a Fintech is holistically offering and don’t try to massage it to fit your needs.

13/13: I could write about this all day and share countless examples from my personal archives that “prove” each side has a valid perspective. Instead, just DM me if you want to talk more or respond to this thread to keep the conversation going.