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What Startups Can Learn from Big Banks About Hiring the Best Talent

As you will know, startups and big banks seem to exist in different universes these days, especially.

For instance, startups are fast-paced, agile, and can also often seem chaotic, while banks are structured, bureaucratic, and bound by regulation.

Yet, when it comes to recruiting in the highly competitive talent market, tech and Fintech startups can learn a great deal from the very institutions they often aim to disrupt.

For instance, big banks, with their deep pockets and decades of industry experience, have perfected a hiring machine that consistently attracts and retains top-tier talent.

But, how, and if you are a startup, what can you take from it?

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The Allure of the Big Bank, Beyond Just the Salary

Startups often try to compete with banks on just salary alone, and they can lose as a result.

As big banks can afford to pay “top dollar”, but it’s not just about the money, you may be surprised ot hear.

As Big Banks’ hiring strategy is more of a masterclass in providing a holistic value proposition to the user, they provide a complete package of career development, prestige, and job stability that attracts top talent.

However, startups can still emulate this by understanding and leveraging the non-monetary benefits that banks use to attract talent.

But what are they?

1. Structured Career Paths and Professional Development

Big banks don’t just hire people; they invest in them. For instance, here they offer clear, well-defined career paths.

A graduate joining an investment bank, for instance, knows exactly what they need to do to become an associate, then a vice president, and eventually, a director.

This predictability provides them with a sense of security and a clear roadmap for professional growth as an end result.

Startups, in contrast, often promise a “fluid” or “dynamic” career path, which can be exciting but also terrifying for many, especially those who have mortgages to pay.

Consequently, one way startups can compete here is that startups should create a simplified version of this structure.

For instance, this could look like:

Define roles and levels.

Even if the team is small, outline what a “junior developer” needs to do to become a “mid-level” one, as this would mimic paths that they can get in larger financial institutional organisations, providing them with a Pathway to grow as an individual.

Offer them a budget for learning

You can also provide a set amount of money each year for employees to use on courses, conferences, or certifications.

This then shows them a tangible commitment to their growth.

Implement a mentorship programme.

You also want to consider pairing new hires with more experienced team members.

This, in turn, can be a low-cost, high-impact way to provide guidance and also to help build professional connections that may otherwise go unmissed.

2. The Power of Prestige and Brand Recognition

Working for a major bank like Goldman Sachs or JP Morgan comes with a certain level of prestige; we all know it.

As a brand name that opens doors and looks great on a CV, regardless of where an individual’s career takes them, this brand recognition is a powerful recruiting tool.

Startups, while lacking the historical prestige of a bank, can build their own brand identity in their own niche.

This isn’t about becoming a household name overnight but about building a strong employer branding identity, as a powerful brand, built on a clear mission and vision, can be your most powerful recruiting tool.

For instance, you want to strive to build your company as a reputation as a great place to work, one where your values align with those of top candidates.

But, how do I do that, I hear you say?

Well, this can actually be achieved by:

Sharing success stories

For instance, here you can highlight your employee achievements and team successes on social media, where everybody can see them proudly.

Encouraging testimonials

You may also want to ask current employees to share their positive experiences.

Here, a genuine endorsement is far more powerful than a corporate marketing message can ever be.

Building a strong company culture

You also want to be intentional about creating a positive and inclusive work environment.

A strong culture can then become part of your company’s brand.

The Unspoken Conflict, and How to Win the War for Talent?

In today’s Fintech talent market, there really is a fierce war for talent.

As here top financial professionals here are not just looking for a job; they are looking for a career that aligns with their professional and personal goals.

Consequently, big banks have dominated this landscape for years, but startups, with their unique culture and rapid growth, are now formidable opponents for many reasons, as you well know.

However, to win, you must be more than just a place to work; you must be the top choice in a highly competitive field, and this does require a more strategic approach to everything from how you source candidates to how you retain them.

So let’s delve into tips and strategies you can use, and we are always here to help if you need it as well.

A Good Recruitment Funnel

While Fintech startups often rely on a handful of job boards and word-of-mouth, big banks operate a very high-end and multi-layered recruitment funnel, including specalised fintech recruiters, who know how to find the right talent, to vet them and to show them to the correct stakeholders, saving their internal team a lot of time in the process.

Overall, it’s a machine that is just designed to source and screen a large volume of candidates very efficiently.

Due to this multi-layered process, it can also include assessment centres and interviews, which are more designed to test a candidate’s skills and problem-solving abilities really quickly and easily.

But how can financial start-ups compete?
Well, you can do so in a number of ways, including, for instance:

1. Cultivating a Talent Pipeline

Big banks don’t wait for talent to apply; they actively look for it. For instance, they build relationships with universities, sponsoring events, holding career fairs, and running internship programmes as well. All of which, especially when combined with a dedicated recruitment layer, really creates a continuous pipeline of new talent for you to choose from. However, startups can still adapt this approach by:

Targeting specific university departments

For instance, if you need data scientists, you should consider building a relationship with a local university’s computer science department.

Here, you want to consider offering to give a guest lecture or host a workshop to help give them something that can get you in front of a lot of upcoming top talent.

Leveraging Networks and Community Building

While big banks have access to an extensive network through their brand and alumni, startups can create their own powerful recruiting tool by focusing on community building. For instance, you can do so in a number of ways, including for instance:

Become a Thought Leader

Your startup’s leaders should be active participants in the industry.

Ways to do this include, for instance, encouraging them to publish relevant articles, speak at industry events, and host roundtables.

This then not only builds the company’s reputation but also positions your team as thought leaders, attracting like-minded professionals who share your values and vision.

Build a Strong Referral Programme

Referrals can also often be the best source of new hires.

They are pre-vetted by a trusted employee and are more likely to be a good cultural fit.

As a result, you can incentivise your current team to make introductions and actively participate in the recruitment process, which in turn also turns every employee into a brand ambassador and a fintech recruiter at the same time.

Creating a strong internship programme

Even a short, paid internship is a fantastic way to test out a potential long-term hire.

For instance, it’s also a great way to give back to the community and build your brand as well.

Take on a dedicated Financial Recruiter.

Taking on a dedicated financial recruiter is also another great way to get access to a very large talent pool very quickly.

As we have access to a lot of people in many different financial and Fintech disciplines, and also have the experience to vet the candidates for you, we and to help you along your recruitment process as well.

2. The Rigorous Screening Process

Next up in the big bank recruitment process, which they are famous for, is the screening process.

This then involves multiple rounds of interviews, technical tests, and sometimes even assessment centres as well.

This rigour, while daunting, serves a purpose, as it filters out a large number of applicants and ensures that only the most dedicated and qualified candidates make it through.

Startups, as a result, should consider adding more structure to their interviews to try to bring over the same level to their interviews.

For instance, this doesn’t mean making them more difficult, but making them more deliberate.

What we mean is that instead of a casual chat, you can try instead:

Structured interviews

Here, you want to ask all candidates for a specific role the same set of questions. This, in turn then makes it easier to compare them fairly.

Skills-based challenges

Instead of asking “how would you solve this?”, give them a small, practical problem to work on.

For instance, one could be: “You are hypothetically put in charge of 3 shops. 1 shop is failing and losing a lot of money, 1 shop is breaking even, and 1 shop is very profitable. How would you hypothetically make the business make more money?”

What you are not looking for here is not a detailed understanding of business strategy, but how they approach the problem. Do they go for the easiest answer, such as close the underperforming shop, or do they show you a more creative problem-solving ability?

Such as, I would move the Manager from the successful shop ot the worst performing shop to see if they can either mentor or turn it around, or is the product offering correct for the underperforming shop for its area and demographic.

The point being, it isn’t the actual answer itself that matters. It’s more about how they handle the question, as this can indirectly tell you a lot about the individual you have to hand.

This then provides you with a clear demonstration of their abilities.

Alternatively, if you do not have the time to handle that, then our dedicated and specialist Fintech recruiters are also on hand to handle this side of the recruitment process for you, and to take the stress away, to allow you to focus on other growth areas of your business instead.

Employee Retention is The Long Game

Hiring the best Fintech talent is only half the battle; keeping them is the real challenge.

Consequently, big banks have mastered retention by offering stability and continuous opportunities.

For instance, here they offer:

1. Stability and Predictability

In a world of constant change, the stability of a big bank is a significant draw, let’s face it. The clear hierarchy, established processes, and secure paychecks really do provide a sense of certainty that many people crave. Startups, on the other hand, can offer their own version of stability, not through bureaucracy, but through clarity and communication. But, how do you do this? Well, you can do this in a number of ways, including, for instance:

Transparent communication

For instance, you want to regularly update the team on the company’s financial health, strategy, and challenges.

Here, transparency really does build trust and reduce anxiety at the same time.

Fair and consistent policies

You also want to have a clear policy on things like leave, pay reviews, and promotions as well.

As here fairness creates a sense of overall psychological safety, for instance.

2. Internal Mobility and Growth

Big banks also offer you a wide range of career opportunities within the same organisation.

For instance, an analyst in London can move to New York, or an employee in the mergers and acquisitions department can transition to risk management if they want to.

This internal mobility is a huge incentive to stay.

While a small startup can’t offer global transfers, it can encourage internal mobility in a number of ways, such as for example:

Cross-training

You can allow your employees to spend time with other teams to learn new skills, as it may highlight a desire for an internal change or new ideas to be spread.

Promotion from within

Whenever possible, you also want to look to promote existing employees into new roles.

As this shows that the company values its current staff and provides them with a clear path for growth as a consequence.

The Unseen Lesson, How to Mitigate Bias in the Hiring Process?

While startups can learn a great deal from the structured approach of big banks, they must also be wary of the potential for unconscious biases to creep into the hiring process.

For instance, here, big banks, with their legacy systems and long-standing traditions, can sometimes perpetuate these biases inadvertently.

Startups, on the other hand, being more agile and unburdened by this history, are in a unique position to create a fairer, more inclusive recruitment environment from the ground up.

This doesn’t just feel right; it makes commercial sense, as diverse teams are proven to be more innovative and productive.

So, how can you build on the bank’s model to actively reduce biases?

There are actually a number of ways you can do this, including, for instance:

Focus on Your Company's Core Values

A strong company culture is actually a great recruiting tool, but it’s ideal if you define it in terms of shared values and behaviours, not shared backgrounds.

Actively promoting a culture of inclusion will, by default, naturally attract a more diverse team.

Due to this, you want to hire for a cultural add, not a cultural fit, which can then help to lead you to be a more homogenous team as an end result of doing so.

Implement Blind Hiring Practices

One of the most effective strategies is to remove personal information from early-stage applications.

This means stripping resumes of names, ages, university names, and even addresses.

This then lets you focus solely on skills and experience, allowing you to ensure that your initial screening decisions are based purely on merit, not on preconceived notions about a candidate’s background.

This is a simple but powerful way to combat implicit biases in our view.

Standardise the Interview Process

Your structured interview process is a key defence against bias – trust us.

As a result, by asking all the candidates the same set of questions and using a pre-defined scoring rubric, you can fairly compare them.

This then helps to prevent the person doing the interviewer from being swayed by a candidate’s personality or shared interests, which can always unintentionally favour people who are similar to them.

Focus on Your Company Values and Culture

A strong company culture is a great recruiting tool, but it’s important to define it in terms of shared values and behaviours, not shared backgrounds or personalities.

For instance, you can frame your culture around principles like collaboration, problem-solving, and respect.

This ensures you are hiring for a cultural add, not a cultural fit, which can lead to a homogenous team as an end result.

As a result, actively promoting this culture of inclusion will also naturally attract a more diverse team of applicants as an end result.

Diversify Your Interview Panel

You can also make sure that your interviewers come from different backgrounds and departments as well.

Here, a diverse panel can really help to counteract individual biases and thus provide you with a more holistic assessment of a candidate as a whole.

It also sends a strong signal to your applicants that your company values diversity at all levels this.

The New Worklife Currency - the Flexible Working Arrangements

While big banks have traditionally been rigid with their ‘9-to-5, in-the-office’ culture, the post-pandemic world has made flexible ways of working a key battleground for talent.

For instance, here startups really can leverage their natural adaptability to offer the kind of flexibility that larger, more bureaucratic institutions struggle to provide.

This isn’t just about offering remote work; it’s about building a unique workplace that attracts a wider pool of talent, including those who may be part of the “hidden talent” pool due to caregiving responsibilities or geographical constraints as well.

For instance, here’s how Financial startups can win on this front, in our expert opinion:

Actually Embrace Asynchronous Working

This approach focuses on output rather than hours.

For instance, it allows your employees to work when they are most productive, regardless of the clock.

This model, often used in fully remote companies, requires a strong alignment on project goals and clear communication tools, but it can be a massive draw for top performers who value autonomy and a healthy work-life balance, as this way of working can deliver for them here.

Provide an Inclusive Benefits Package

Beyond a standard salary, your startup can also offer benefits that truly support a modern, flexible workforce.

For instance, you want to consider a remote working allowance to cover home office costs, or offer “unlimited” or regular mental health days to promote employee well-being, as just a few options for you to consider.

Take Advantage of Salary Sacrifice Schemes

While startups may not be able to compete on base salary alone, they can use salary sacrifice schemes to provide valuable benefits like improved pension contributions, electric vehicle leases, or childcare vouchers, to name just a few.

This then, in turn, allows your employees to access benefits that are more tax-efficient, making the overall compensation package that you offer much more appealing and competitive as an end result.

The Differences in Speed and Agility in Hiring

As you know, big banks operate with a structured, often slow, hiring process due to their size and bureaucracy; a key advantage for startups is their inherent speed and agility.

In a competitive market, the ability to move quickly is more ideal than you may think, especially when it comes to securing top talent.

This doesn’t mean rushing decisions, oh no, but rather having a more streamlined hiring processes that allow for rapid and decisive action, to allow you to make an offer before more established players in the industry can.

Adopt an 'Always Be Hiring' Mindset

For instance, a true startup mindset is to be constantly on the lookout for great people, even when a specific role isn’t open.

By continuously building a talent community, you are ready to act when the right person comes along, and this adaptability then allows you to hire opportunistically, rather than reactively.

Streamline Your Process

Startups must also look to cut down the number of interview stages and the time between them, where possible as well.

While banks might have four or five rounds of interviews over several weeks, a startup should aim to make a decision within one or two weeks.

This, in turn, shows respect for the candidate’s time and prevents them from accepting another offer while waiting for you to decide as well.

Build Transparency and Collaboration

When it comes to recruiting, we often find that efficiency is key.

As here to have a clear, targeted approach for each role, with a defined interview panel and clear responsibilities, is more important than you would at first think.

As this then helps to encourage you to develop more collaborative teams that can then provide quick feedback.

You also want to be open and honest with your candidates about the process, and provide them with a clear timeline and regular updates as well.

As we find that this transparency then helps to build trust and keeps top candidates engaged as a direct result.

From Offer to Onboarding, What Are The Final Stages of Your Hiring Process?

The work doesn’t end when a candidate accepts your offer, though. This is actually where many startups falter, leading to high turnover as a result. So how can you mitigate this? Well, you can do so in a few areas, for instance:

Seamless Onboarding

Seamless Onboarding
A smooth and engaging onboarding experience is then actually needed, once they accept.

As it’s your first chance to truly welcome your new employee and immerse them in the company culture, if this goes wrong or badly, they can easily start to think, “Have I made the correct choice?”.

As a result, a great onboarding process really helps them to feel valued and ready to contribute from day one.

The Long-Term View

You also want to view every new hire as a long-term hire, not just what they can contribute in the short term.

As by providing them with a clear career path, opportunities for professional development, and an open communication channel, you can easily demonstrate a commitment to their future.

This is how you then make sure that you have a high retention level and also help to build a workforce committed to the company’s long-term success at the same time, in our view.

What Startups Can Learn from Big Banks About Hiring the Best Talent Overall

So as you can see, while startups may never have the same resources as a big bank, they can learn from their recruitment approach to talent management.

By focusing on a more holistic value proposition, building a structured recruitment funnel, and prioritising your long-term employee retention, as a startup, you can build a workforce that is not only talented but also loyal and committed to your long-term success.

Get in Touch with Us Today Ready to take the next step?

Whether you are an employer seeking the best in the business or a candidate aiming for the stars, we’re here to help. Contact us today, and let us make your Fintech recruitment journey a success – we are here to help you.

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Faster Hiring Process

We speed up your hiring by quickly presenting pre-vetted candidates with relevant experience, reducing the time and effort needed to fill key positions.

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Our recruitment agency has deep industry expertise, understanding the specific skills needed for roles in digital banking, payments, and investment banking. We also ensure that precise candidate matching for roles such as Program Manager, IT Project Manager, and Senior Manager occur easily as well.

Access to a Niche Talent Pool

We have access to a very niche talent pool of top candidates with payments industry experience, expertise in AI project management, and knowledge in areas like Fraud Detection, Predictive Analytics, and Compliance Monitoring.

Understanding of Regulatory and Compliance Requirements

Our recruitment agency also understands industry regulations and compliance checks that are needed, to ensure that our candidates meet both technical and compliance needs, which really is key as you know, for the financial services sector.

Who Is Mark Loucas

We specialise in Digital Banking Operations & Project Management recruitment, and our team understands the industry inside and out.

As a result, our experienced fintech recruitment team has a proven track record of successfully placing candidates in leading companies who can bring in the best practices for your team and project goals, and we have a dynamic team dedicated to helping you find exciting opportunities in the financial services industry.

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So are you ready to take the next step? Whether you are an employer looking to build a top-notch team or a candidate seeking new opportunities, Mark Loucas is here to help you. Contact us today to learn more about our services and how we can assist you.

Our Digital Banking recruitment services include finding and placing individuals who have a main emphasis of this position in the following areas:

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What Startups Can Learn from Big Banks About Hiring the Best Talent

What Startups Can Learn from Big Banks About Hiring the Best Talent

The Allure of the Big Bank, Beyond Just the Salary

1. Structured Career Paths and Professional Development

Define roles and levels.

Offer them a budget for learning

Implement a mentorship programme.

2. The Power of Prestige and Brand Recognition

Sharing success stories

Encouraging testimonials

Building a strong company culture

The Unspoken Conflict, and How to Win the War for Talent?

A Good Recruitment Funnel

1. Cultivating a Talent Pipeline

Targeting specific university departments

Leveraging Networks and Community Building

Become a Thought Leader

Build a Strong Referral Programme

Creating a strong internship programme

Take on a dedicated Financial Recruiter.

2. The Rigorous Screening Process

Structured interviews

Skills-based challenges

Employee Retention is The Long Game

1. Stability and Predictability

Transparent communication

Fair and consistent policies

2. Internal Mobility and Growth

Cross-training

Promotion from within

The Unseen Lesson, How to Mitigate Bias in the Hiring Process?

Focus on Your Company's Core Values

Implement Blind Hiring Practices

Standardise the Interview Process

Focus on Your Company Values and Culture

Diversify Your Interview Panel

The New Worklife Currency - the Flexible Working Arrangements

Actually Embrace Asynchronous Working

Provide an Inclusive Benefits Package

Take Advantage of Salary Sacrifice Schemes

The Differences in Speed and Agility in Hiring

Adopt an 'Always Be Hiring' Mindset

Streamline Your Process

Build Transparency and Collaboration

From Offer to Onboarding, What Are The Final Stages of Your Hiring Process?

Seamless Onboarding

The Long-Term View

What Startups Can Learn from Big Banks About Hiring the Best Talent Overall

Get in Touch with Us Today Ready to take the next step?

Why Choose Mark Loucas?

Faster Hiring Process

Industry Expertise and Specialised Knowledge

Access to a Niche Talent Pool

Understanding of Regulatory and Compliance Requirements

Who Is Mark Loucas

Job Alerts and Market Insights

Join Our Network

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