Leading global cryptocurrency exchange and Web3 company Bitget has released a comprehensive report revealing that one-third of cryptocurrency job seekers have worked in banking and finance industries. The report also provides valuable insights into the impact of decentralized technology on banks by 2023 and analyzes the effects of remote work and digitization on the financial job market.
Report Summary:
– 33% of exchange job seekers have previously worked in the banking industry.
– Blockchain retail banking investment is projected to reach $40.4 billion by 2031.
– A 50% reduction in bank revenue has led to over 70,000 job cuts between 2020 and 2023.
– 36% of blockchain-related positions are remote, which is double the global average of 16%.
– Salaries at cryptocurrency startups are nearly twice as high as those in comparable positions at banks.
– 23% of candidates apply for positions such as KYC managers, compliance advisors, senior compliance advisors, and anti-money laundering analysts.
The report delves into significant events driving the adoption of blockchain in traditional banking by 2023, including development projects by giants such as HSBC, JPMorgan Chase, and Citigroup aimed at applying decentralized technology. It is predicted that by 2031, the impact of blockchain on the retail banking industry will reach a milestone of $40.4 billion, with a compound annual growth rate of 40.4%. It is expected that between 2025 and 2026, banking industry spending on blockchain will reach $22.5 billion.
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The main section of the report focuses on the hiring trends in the blockchain industry, emphasizing how high salaries and innovative prospects in the financial industry are attracting talent to the cryptocurrency field. This has resulted in talent drain from traditional banking, prompting the latter to reevaluate recruitment methods and compensation packages.
The statistical data in the report shows that in 2020, the number of tech-related job vacancies in the UK alone increased by 46%, accounting for one-third of all national recruitment positions. Goldman Sachs provides the best example of this issue, as 30% of its employees are software engineers.
The shift of young employees towards tech work is also a significant factor, further weakening the banking workforce. The outflow to the high-tech industry has been partially balanced, with companies such as Coinbase, Amazon, Alphabet, and Microsoft recruiting between 20 and 200 employees in these sectors. The cryptocurrency industry has led the talent recruitment wave, with Coinbase attracting 197 talents and Amber Group attracting 250 talents. Despite the FTX crisis in 2022 resulting in the loss of over 2,000 jobs in the industry, this trend still persists.
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Cryptocurrency Industry Offers More Competitive Salaries
Bitget CEO Gracy Chen: Decentralization is Reshaping Traditional Banking
Cryptocurrency Industry Offers More Competitive Salaries
In terms of salaries, the report points out that banks have reduced overall salaries due to remote working conditions and digitization, while the cryptocurrency industry offers competitive high salaries for remote workers. In 2022, 36% of blockchain-related positions were remote, which is twice the global average of 16%. In terms of compensation, the starting salary for junior engineers at London-based cryptocurrency startups is around $125,000, with incentives, while investment banks offer a starting salary of $87,810 for similar positions. The average wage in banks is $54,000, while the average wage in cryptocurrency companies is around $115,667, highlighting a significant difference.
The Bitget report also emphasizes the talent drain from the banking industry by using the number of job applications related to banking. The report states that the number of job applications related to the banking industry increased by 113% in 2022 and 143% in 2023, with the number of applications rising from 880 to 1,440 within two years. This means that 33% of job applications in 2023 come from the banking industry. As for professionals from outside the cryptocurrency market, their interest has grown from 180% to 330% within two years, nearly doubling.
Common positions in fields such as investment relations, business development and sales, KYC and compliance, data analysis, product design, project management, and backend engineering are most frequently seen. 23% of job seekers apply for positions such as KYC managers, compliance advisors, senior compliance advisors, and anti-money laundering analysts.
Factors such as high salaries, industry reputation, development opportunities, and flexibility are considered the main reasons for employees’ migration to the cryptocurrency industry. Banks have been slower to respond, with 74% of CFOs stating in a Deloitte survey that they plan to transition previous internal employees to remote positions.
Bitget CEO Gracy Chen:
Decentralization is Reshaping Traditional Banking
Gracy Chen, CEO of Bitget, stated, “Bitget’s latest report highlights the significant changes occurring in the financial job market, with strong momentum in the cryptocurrency industry reshaping traditional banking. Data indicates that talent in the banking industry is being attracted by high salaries and innovative prospects, leading to a shift towards the cryptocurrency field, which is a major transformation. This shift may result in increased mergers and acquisitions in both markets, impacting layoffs and changing the labor market. As the cryptocurrency industry continues to thrive, we will continue to provide valuable insights to help professionals and market participants navigate this ever-changing environment.”
Bitget is also continuously recruiting talent globally, expanding and developing in various markets. This report provides valuable information for professionals and related workers, assisting them in understanding potential changes and development opportunities in the industry.
Bitget
Further Reading
Bitget Partners with Football Legend Messi to Launch #MakeItCount Campaign
Bitget Wallet Introduces GetScribe, the First All-Chain Notary Tool, Creating an All-In-One Notary Ecology Platform