The fintech industry in Europe is booming with innovation, with startups transforming payment systems, lending, blockchain technology, and digital banking.
While the growth potential is huge, navigating the fintech landscape comes with its challenges. One such hurdle is the shortage of skilled tech talent. Finding the right experts becomes critical as these companies scale rapidly to meet market demands.
According to a PwC report, 42% of fintech executives in Europe identify talent acquisition as one of their top challenges. That’s where fintech needs to decide on leveraging the expertise of required talents through outsourcing or team augmentation services.
In this blog, we’ll discuss team augmentation and how fintech startups can benefit from such a service.
What is Team Augmentation for Fintech Startups in Europe?
Team augmentation is an engagement model of scaling up your in-house team temporarily with external expertise based on your project needs.
While the project outsourcing model means you need to hand over the entire project to external control, having less direct control, team augmentation enables fintech companies to support their in-house team with external experts.
With team augmentation, you can retain direct control over your project and adjust your team size as needed, avoiding the overhead costs and lengthy hiring processes that come with traditional recruitment.
Whether you’re a startup looking to accelerate growth or an established fintech product owner needing specialized skills, staff augmentation offers an efficient and flexible solution.
Team augmentation has become an essential strategy for fintech companies in Europe as it helps bridge the gap between your business ambitions and available resources. Moreover, it allows you to scale quickly, innovate at pace, and maintain a competitive edge in the fast-moving fintech sector.
Benefits of IT Team Augmentation for European Fintech Startups
Let’s explore the benefits of staff augmentation in Fintech startups in Europe. Some of the most common benefits of IT staff augmentation are cost-effective scalability, niche expertise, etc.
Here are the key benefits of team augmentation specifically for the Fintech Industry.
1. Bridging Skill Gaps for Specialized Fintech Projects
The rapidly evolving fintech landscape often demands expertise in areas like blockchain, AI, and cybersecurity. Team augmentation allows fintech companies to quickly onboard such specialized professionals without the lengthy process of full-time recruitment.
For instance, if a European fintech startup is working on a secure digital wallet, it can hire a blockchain expert temporarily to ensure robust encryption and compliance with local regulations.
This ensures that businesses can meet the technical demands without compromising on security or innovation.
2. Cost Efficiency and Flexibility
Fintech companies face constant pressure to control operational costs while maintaining quality. IT staff augmentation services provide a cost-effective solution by offering the flexibility of hiring skilled professionals for specific projects.
Unlike traditional hires, augmented teams don’t require infrastructure investments like office space or equipment. Similarly, companies save on long-term employee benefits such as health insurance, paid time off, or retirement funds.
For instance, a fintech company launching a mobile banking app can hire mobile developers temporarily without the burden of long-term employment costs, enabling them to focus their budget on scaling the product.
3. Speeding Up Time-to-Market
In fintech, the speed at which a product or service is launched can make a significant difference in gaining market share. Team augmentation empowers companies to expedite development by adding experienced developers who can quickly integrate into existing teams.
A prime example of this is the European fintech company Bondora, an Estonian-based investing platform. Bondora expanded its tech team with backend developers to expedite the development of its new loan servicing and investment management system. This enabled them to meet critical regulatory deadlines and improve their user experience.
By augmenting their team with specialized skills, they were able to launch updates faster than competitors, maintaining a strong position in the European P2P lending market.
4. Access to the Global Talent Pool
The fintech sector thrives on innovation, and often the best talent is not always local. With team augmentation, fintech companies can tap into a global talent pool, bringing in professionals with diverse skill sets and experience.
For example, a European fintech startup, Revolut, implemented AI-powered fraud detection systems. They hired AI specialists from around the world to improve their fraud detection algorithms, ensuring faster, more accurate identification of fraudulent activity.
Team augmentation service facilitated tapping into a global talent pool, ensuring that they benefit from the latest global advancements in the field without geographical limitations.
5. Scalability and Flexibility
Fintech startups are often faced with fluctuating demands and need the flexibility to scale their teams up or down rapidly.
Team augmentation allows companies to bring in talent when the project demands more resources or when new regulatory challenges arise.
For instance, a fintech firm that specializes in digital payments might temporarily increase its development team to handle compliance with new EU regulations. Once the project concludes, the firm can scale down without the ongoing commitment of permanent employees, maintaining efficiency and controlling costs.
By leveraging team augmentation services, fintech companies in Europe can not only fill skill gaps but also reduce time-to-market, control costs, and scale their operations quickly in an increasingly competitive environment.
This flexible approach provides the agility needed to navigate the fast-paced world of fintech while focusing on core business goals and customer satisfaction.
Growing Demand for IT Specialists in Europe’s FinTech Startups
The European fintech sector has been thriving over recent years, and so is the demand for specialized IT talent.
According to a report by the European Commission, over 70% of businesses in Europe report challenges in hiring tech talent. Moreover, ensuring compliance with stringent EU regulations such as PSD2 and GDPR adds to the challenge.
FinTech Startups in European companies are especially struggling with a shortage of talent in high-demand fields such as DevOps, cybersecurity, and blockchain.
With team augmentation services, companies can access a global talent pool of skilled developers and IT specialists. For example, a German fintech could hire a blockchain expert from Spain to develop secure payment systems, accelerating innovation and meeting market demands efficiently. This ensures faster product rollouts while meeting market-specific needs.
By bridging skill gaps, team augmentation not only addresses talent shortages but also empowers fintech companies to scale efficiently, innovate rapidly, and meet compliance standards in the diverse European market.
Team Augmentation Service for FinTech with Asterdio
At Asterdio, we’re built for fintech’s fast pace. We adapt quickly to changing needs, keep communication clear and transparent, and ensure every team member is aligned with your goals. Our agile approach and focus on collaboration empower your business to innovate and grow effectively.
We also ensure seamless integration of our team with your project through a well-structured engagement model for optimal collaboration and alignment with your goals. Here’s how Asterdio offers team augmentation service for your required technical needs, including Backend, Frontend, Full-stack development, AI/ML, UX/UI design, and many more.
Why build your team with Asterdio
- Expert Leadership: With CTO-led guidance, we ensure the right tech stack and strategic direction for your fintech projects, making sure every technical decision aligns with your business goals.
- Tailored Talent Selection: We carefully match top-tier professionals from our in-house team to your specific project needs, ensuring expertise in emerging fintech technologies like blockchain, AI, and compliance.
- Seamless Integration: Our onboarding process ensures smooth team integration, establishing clear workflows and communication standards for a high-performing collaboration.
- Transparent Communication: We prioritize honesty, providing you with regular updates, and keeping communication open at all stages.
- Scalability on Demand: As your project grows, we swiftly scale your team to meet expanding needs, ensuring seamless transitions.
- Focus on Team Growth: We keep your team members in mind and care for their career development. We ensure your team’s stability, reliability, and long-term success of your project.
Ready to scale your fintech startup with top-tier talent? Whether you’re looking to scale up your fintech startup or need help with a product, we’ve got you covered. Reach out to us to get started on your project and scale your team with top talents.
