In the immediate post-Brexit years, we saw a transformation of the financial services sector in Ireland as banks, fund managers, investment companies and (to a lesser extent) insurers established or built on their Irish entities. Risk Managers were in hot demand, with many moving roles numerous times in a frenetic market. However, in the last few years, this ‘traditional’ end of the sector has largely stabilized, with growth and new market entrants mainly within the ‘emerging’ parts of the sector – namely, Fintech and Crypto. Despite the number of new roles, and some of the compensation packages on offer, many Risk Managers are cautious about a move to this newer part of the industry.
So, what to expect?
Culture is the obvious starting point. There is usually a fast-paced, start-up mentality. It can be energising as employees feel they are creating something from scratch. Senior management are more likely to be technologists than bankers. One CRO of a Fintech told me, “Understanding the founder’s vision, the product mindset, and the focus on user experience has been critical. It’s helped me bridge the gap between regulation and innovation, and reposition risk as part of the value proposition, not a blocker.” She goes on to add, “I’ve also had to embrace the startup mindset, wearing multiple hats, solving problems on the fly, and doing so without the safety net of big teams or legacy infrastructure. It’s fast-paced, often messy, and requires a certain grit, but it’s incredibly energising.”
Internal structures, lines-of-defence and boundaries can quickly change or are less well defined than in a ‘traditional’ financial services company. Flexibility and a tolerance for ambiguity are essential and strategies and approach can quickly pivot. Headcount is leaner and there are fewer hierarchies. Another Fintech CRO said that “Risk professionals need to be able to influence culture and liaise with all levels of the firm. They must be very aware of how they present themselves.”
However, in the rush to innovate, governance and controls can become an after-thought, which can become a major headache when the regulator pays a visit. The CRO can quickly feel exposed, especially given the new IAF regime. According to one Fintech CRO, his role is to “guide the organisation and show that some risks might not be immediately obvious but are important.” He adds that the CEO/ CRO dynamic can quickly become fraught, with the latter having a naturally shorter lifespan than in a ‘traditional’ financial services company.
So, what factors should you consider before making a move?
Do some research into a company’s culture, relationship with regulators and commitment to Ireland. How lean are the teams? Are you going to be expected to take on work outside of your job description or will that job description evolve over time? Ask yourself whether ambiguity is really for you, or do you thrive in a culture where hierarchies and structures are more established? As a CRO, really consider the CEO/ CRO chemistry and outlook, as that is likely to determine your longevity in the company.
In conclusion…
Moving to a Fintech or Crypto company can be an energising and rewarding career experience. According to a Fintech CRO, “I’ve traded polished policy decks and multi-layered signoffs for rapid iteration and real-time decision-making.” In the current challenging employment market, with many ‘traditional’ companies focusing on costs, it may look like a breath of fresh air. That said, it’s not going to be for everyone.
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