In a recent study, Bitget, a global leader in cryptocurrency exchange and Web3 technology, disclosed that a significant 33% of recent crypto job applicants hail from traditional banking and financial sectors. The report, released on January 25, 2024, not only provides a comprehensive analysis of this migration but also explores the profound impact of decentralized technologies on the banking industry throughout 2023.
Key Findings
Banking Exodus: One-third (33%) of applicants for positions in the crypto exchange industry have backgrounds in banking.
Blockchain Retail Investments: The report anticipates investments in blockchain retail banking to soar to $40.4 billion by 2031.
Banking Job Cuts: Banks experienced a 50% reduction in revenues, leading to over 70,000 job cuts between 2020 and 2023.
Remote Work Surge: A notable 36% of blockchain-related roles were remote-based, doubling the global average of 16%.
Salary Disparities: Salaries in crypto startups are nearly double those in comparable positions in the banking sector.
Popular Roles: KYC Manager, Compliance Associate, Senior Compliance Associate, and AML Analyst roles attracted 23% of candidates.
The report delves into the transformative events of 2023 that fueled the adoption of blockchain in traditional banking. Major players such as HSBC, JPMorgan Chase, Citi Group, among others, initiated development initiatives promoting decentralized technology adoption. Predictions suggest that blockchain’s impact on retail banking will reach $40.4 billion by 2031, with spending estimated at $22.5 billion between 2025 and 2026.
A significant portion of the report is dedicated to the changing landscape of recruitment within the blockchain industry. Financial talents are increasingly migrating to the crypto domain, enticed by higher salaries and innovative opportunities. This shift prompts a reevaluation of hiring approaches and compensation strategies by traditional banking institutiwebwebbitgetns.
Statistics spotlight a 46% increase in technology-related vacancies in the UK in 2020, with Goldman Sachs exemplifying this trend with 30% of its employees working as software engineers. The drastic reduction in investment bank revenues led to a substantial exodus of talent, with major banks like Morgan Stanley, BlackRock, and Goldman Sachs witnessing over 50,000 job cuts since 2020.
The report underscores a shift in employee preferences towards technology-focused jobs, exacerbating the workforce erosion in banks. This outflow is somewhat offset by the tech industry, with companies like Coinbase, Amazon, Alphabet, and Microsoft hiring between 20 to 200 employees. Despite the 2022 FTX crisis resulting in over 2,000 job losses in the sector, the crypto industry remains resilient in its hiring spree.
In terms of compensation, the report notes that banks have reduced overall salaries due to remote work and digitization. In contrast, the crypto industry offers significantly higher salaries for remote positions. Salaries for junior engineers at crypto startups in London, for example, can reach around $125,000 with incentives, compared to $87,810 offered by investment banks. This stark difference extends to average salaries, with crypto firms offering around $115,667 compared to banks’ average of $54,000.
Bitget’s report also leverages resume counts to highlight the exodus of banking employees. The yearly count of banking-associated resumes surged from 880 to 1,440 in two years, a 113% increase in 2022 and 143% in 2023. This indicates that in 2023, 33% of all resumes originated from the banking industry.
Middle and senior positions in investment relations, business development and sales, KYC and compliance, data analytics, product design, project management, and backend engineering are among the most sought-after roles, with 23% of candidates applying for positions such as KYC Manager, Compliance Associate, Senior Compliance Associate, and AML Analyst.
Factors such as high salaries, industry prestige, growth opportunities, and flexibility are cited as the primary reasons for this employee migration to the crypto industry. Banks are responding slowly, with 74% of CFOs surveyed by Deloitte stating plans to shift previously on-premise workers to remote positions.
Gracy Chen, Managing Director of Bitget, commented on the report’s significance, stating, “Bitget’s latest report sheds light on the remarkable transformation occurring in the financial job market, as crypto gains momentum and decentralization reshapes traditional banking. The data indicates a significant shift, with talents from the banking sector migrating towards cryptocurrency, drawn by the promise of higher salaries and innovation prospects. Such a shift may lead to increased mergers and acquisitions in both markets, impacting job reductions and transforming the labor market.”
