What skills are needed for Scotland's growing fintech sector?

As well as attracting emerging expertise, companies need experienced leaders and advisers to help turn good ideas into viable propositions.

Talent scouts: Matching experienced leaders to growing fintech companies is a key service for Duggie Carlyle and Fiona James-Martin.

“It is evident that Scotland has a strong talent pool emerging from our universities, incubators and accelerators,” says Duggie Carlyle, founding partner of Edinburgh -based headhunter Carlyle.“These institutions and initiatives are invaluable in developing and encouraging individuals with the intellect, ambition and desire to succeed.

“However, alongside encouraging emerging talent, we also need to attract and cultivate a network of seasoned executives, non-executives and advisers who have the relevant experience and knowledge to help innovative businesses to flourish.”

Carlyle has built strong partnerships with multiple start-ups, small and medium-sized enterprises (SMEs) and large, listed corporates within banking and financial services during its 15-year history. Such long-standing relationships have allowed the team to observe the rise of fintech at close quarters.

In addition to well-established financial brands such as Royal London and Tesco Bank, the client base includes disruptive, fast-growth fintech players such as peer-to-peer lender LendingCrowd, identity specialist the ID Co and cybersecurity specialist ZoneFox, which secured a multi-million pound Series A round in March.

“From a financial services perspective, there is a wealth of native talent, knowledge and experience for fintech businesses to draw upon,” says Carlyle.

“Given our history within this sector, we are well placed to support such businesses in their growth plans, as well as to advise them on their potential future talent gaps.”

In common with the tech industry as a whole, however, there is still a clear need to attract skills and talent from outside of Scotland. London, the world’s leading fintech hub, is a regular fixture in the diary for Carlyle’s partners and associates and represents a growing part of the firm’s revenue.

An example of an established brand which has successfully invested in fintech to enhance the customer experience is Tesco Bank.

Its mobile payments app, PayQwiq, which is led by teams based in Edinburgh and London, was launched with great success last year and now processes a transaction for Tesco every five seconds.

Carlyle supported the acquisition of senior talent in both locations across technical as well as leadership roles.

Edinburgh-based LendingCrowd is a prime example of a fast-growing fintech business that is disrupting the traditional lending model via its peer-to-peer lending platform to SMEs.

Co-founded by Scottish serial entrepreneur Bill Dobbie and run by co-founder and chief executive Stuart Lunn, Carlyle explains that it is the mix of innovative thinking and sound business experience that has been instrumental in LendingCrowd’s success.

“Fintech businesses obviously need disruptive thinkers, digital experts and technical specialists in order to thrive, but they also need experienced leaders and advisers who can help turn ideas into viable business propositions with the ability to scale.

“This has created opportunity for Carlyle to partner with growth businesses who have this requirement for senior talent as well as for emerging skill-sets and thinking.”

Carlyle’s own senior team was augmented last year with the addition of Fiona James-Martin, who leads the firm’s interim practice.

She explains: “Our clients are having to adapt to rapidly changing markets, and we are increasingly being asked for talent solutions that provide access to senior advice and expertise on a non-permanent basis.

“Our dual search and interim offering allows us to swiftly provide clients with the talent and resource they require through a cost model tailored to their needs.

“This has proven especially valuable to clients within fintech and other fast-growth disciplines, where business plans and budgets evolve rapidly.”

Carlyle regularly runs board-level events for senior executives, non-executives and advisers to ensure they have an accurate barometer on the current challenges faced in business.

The most recent dinner focused on the opportunities, challenges and governance issues that our digital and technologically-focused world is creating.

Discussion centred around increasingly stringent regulatory demands, brought about through current and upcoming measures such as the Senior Managers and Certification Regime, Second Payment Services Directive (PSD2) and General Data Protection Regulation (GDPR).

In the wake of such changes, fast-growth businesses could benefit from access to a seasoned senior resource who could help them navigate regulation and compliance, mitigate risk and maximise long-term value.

Across the business landscape, and of particular relevance to fintech, Carlyle is also seeing a marked increase in demand for senior talent in disciplines such as cybersecurity, identity management and payments.

In such high-growth areas, the Carlyle team works with clients to facilitate useful introductions to potential advisers, investors and other relevant businesses, with the aim of encouraging debate and collaboration within the wider Scottish ecosystem.

Carlyle has just signed a partnership with Entrepreneurial Scotland, which was formed in 2014 when the Entrepreneurial Exchange merged with leadership development organisation the Saltire Foundation.

Carlyle sees parallels between their ethos and the growth of the nation’s tech and fintech ecosystems.

“I first became involved with the Entrepreneurial Exchange ten years ago and have derived great benefit from being part of the community,” he says.

“As Sandy Kennedy, James Stuart and Chris van der Kuyl drive Entrepreneurial Scotland to the next level, I think we’ll see more examples of innovative Scottish businesses successfully scaling and growing, capitalising on opportunities on both a national and international stage.”

To create a future roadmap to success, Carlyle believes that encouraging more collaboration in the ecosystem is essential. He says: “There is little doubt that Scotland has a collaborative environment that is perhaps not as evident in larger business hubs.

“What is important in such an environment is that we cultivate an attitude that success breeds success, where companies, industry bodies and individuals work together to help develop an ecosystem conducive to sustainable growth.

“However, as well as strengthening our ecosystem and fintech proposition, in order to attract investment and retain senior talent, we must also focus on making Scotland an attractive place to live and work.”

Interim executives

In recent years, Carlyle has seen a marked change in talent requirements throughout many business sectors.

Alongside the permanent talent agenda, there is an increasing appetite and need in businesses of all sizes for high-impact interim talent that can demonstrably move the needle.

Carlyle Interim was established as a result of this increased demand, and focuses on identifying and attracting the best non-permanent talent for senior, board and advisory roles.

Within fintech and other fast-growth businesses, interim executives can provide specialist technical skillsets that cannot be found in-house or that are not conducive to a permanent role.

Through such appointments, organisations gain access to senior individuals with a wealth of specific, targeted experience and the ability to deploy that expertise in a focused manner to fulfil specific business needs or challenges.

In addition, the ability to access senior interim networks can be an invaluable resource for businesses looking to build specialist teams or develop specific functions.

In an advisory capacity, businesses can benefit from introductions to experienced leaders who can assist in the development and execution of top-line strategy.

Such individuals can also provide expertise in areas such as governance, regulation and risk, which are consistently highlighted to Carlyle as areas where small and medium-sized enterprises (SMEs) and fast-growth businesses often lack sufficient capability.

Interim appointments also offer a financially viable alternative for businesses who require a specific skill-set, but where budgetary constraints restrict permanent hires.

Associate partner Fiona James-Martin explains: “In an increasingly technology-driven world, agility and adaptability are essential to remain competitive.

“In this regard, the measurable value provided by an impact interim is a tangible asset to businesses.

“Given the upsurge in businesses now actively recruiting senior interim talent, as well as the increase in senior individuals choosing to move into interim career paths, non-permanent hires are set to stay firmly on the talent agenda.”

For more information visit Carlyle.