Insights

Change Management & Technology

TECHNOLOGY MARKET COMMENTARY Q3, 2019

• Article by BRUIN Financial

TECHNOLOGY MARKET COMMENTARY Q3, 2019

MARKET OVERVIEW

 

London

Tech in Financial Services has continued to grow in Q3 2019. Demand for real time applications, systems and tools which are bespoke to team, department and company requirements are all contributing towards more developers needed. More developers leads to volume applications needing testing (3 to 4 developers to a tester is the norm), and more applications creates a need for more application support analysts, and so on, and so on.

Data is being spoken about more as a future currency than just information these days. The filing cabinets are long gone with cloud based systems, data lakes, data warehouses and cyber security dominating larger firm’s priorities when storing data. Data management, processing and reporting are just as important as storage with BI developers working with multiple automated and manual tools to develop reports and offer insight to give the business a competitive edge across management decision and the trade floor.

We are also seeing a number of small Fintech firms developing bespoke Tech focusing on automation across legacy systems in Investment Banking. Cyber Security continues to be a priority as regulations on data management and analytics are ramped up.

All in all, it is a good time to be a tech professional in the Financial Services market with lots of new Tech to learn, build, test and support in a fast paced and ever changing environment.

 

Regional

Technology continues to grow within the Financial Services sector in the North West, despite the uncertain political landscape. Technology is continuing to grow within Fintech, Asset Management, Banks and Insurers as businesses are heavily investing in new technologies and growing technical teams.

 

A recent report has stated that the city of Manchester currently has 100,000 technology professionals with a further 164,000 vacancies for workers with both tech and non-tech skills. New figures also show that tech companies throughout Manchester have raised £450m from investors in the year to date, thus increasing the demand for technology professionals. Due to the increase in demand for technology professionals, previous businesses who would have stated themselves as for example Manufacturing, have now transformed themselves into technology driven organisations to keep up with the fast paced technology sector.

 

If you have contractors in your team, then you have probably heard about the IR35 changes taking place from April 2020. We are expecting 1/3 of contractors to be clearly outside of IR35 (carry on as before) and 1/3 of contractors clearly inside IR35 (changing to PAYE, FTC or Perm). This leaves 1/3 of the contractors in the UK market uncertain of their status under the IR35 legislation. Do you know your contractors status?

 

ROLE PROFILES

London

Java developers have been in high demand in Q3 with roles at all levels (Graduate to Technical Lead). With Java being the number 1 development language in the UK, its no surprise to find Financial Services businesses looking for developers at all levels to work on business applications across all functions. Key skills in demand include knowledge of Micro-services, Restful API’s, Perl, Node.JS, Splunk, Springboot and many more. Application Support Analyst with SQL and debugging experience has also been in high demand, particularly with scheduling tools experience. This is a high growth area across Asset Management as in-house development is at an all time high across the sector.

 

Business Intelligence Developers continue to be in high demand and companies look to utilise their existing data and new data in different ways to enhance decision making. We are seeing a number of hybrid roles in this space as smaller firms have yet to build dedicated BI teams but see the benefit of combining Data Management and Development to cover this function.

 

With an increase in demand for Developers we will continue to see the Tester market grow. We are seeing more Contract opportunities in this space which coincide with big development projects going live to compete with Fintech Challenger Banks, InsureTech and other areas.

 

IT Support is also seeing a big surge as global firms have been forced to follow the sun with their support teams. Key skills in this area continue to cover both mobile and desktop support, with 1st line support being more technically minded than ever before. We are seeing 1st line roles requiring Mimecast, PowerShell Scripting and basic networking exposure.

 

Manchester

C#/.NET and Java Developers are a continuous trend in the North West as companies are in demand for Developers. The continued demand for Developers has been consistent throughout our Investment Banking, Asset Management and Insurance clients. Financial Services experience has recently been a requirement from our clients, however due to the shortage of Developers in Manchester, we have noticed that more businesses are now considering Developers outside of Financial Services and focusing more on their technical skills.

 

PREDICTIONS

Tech continues to be the fastest growing sector within Financial Services. IR35 may move a portion of the market from Contract to Perm but with the high volume of projects in this space, we are expecting many contractors to be outside of IR35 and thus unaffected by the legislation.

Key growth areas expected include:

  • Java, C#, PHP
  • Application Support
  • Helpdesk, 1st, 2nd and 3rd Line Support
  • BI Developers / Hybrid BI Developers

 

Women in Tech is still very high on the agenda , from start-ups to global corporates. A recent survey conducted by a Big 4 Firm show that only 15% of tech professionals are Women, and aren’t encouraged enough at education level to undertake a career in technology with only 27% of female students saying that they would consider a technical role as opposed to 61% of males. The outcome of the survey suggested that female students aren’t exploring a career in technology as they feel that it is too male dominated. We have recently seen more businesses and organisations across the UK implementing strategies to encourage more women into technology.

 

The automation of Back Office, Middle Office and Support functions continues across Financial Services with traditionally large teams being trimmed down to small oversight functions with Technology now automating a large volume of the work. Examples of this include KYC, AML, Regulatory Reporting, Trade Surveillance, Trade Processing and Settlements, MI Reporting and many more.

 

Upcoming Breakfast Seminars hosted by BRUIN :

London: The Automation of Financial Services

Manchester: Women in Tech in Financial Services

 

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For more information about the market or current opportunities please contact one of our Consultants.