Are financial technologists mainly motivated by money?

9 July 2010

3 minute read

Are financial technologists mainly motivated by money?

Technologists working in the financial sector will be rather smugly aware that they earn substantially more than their contemporaries in other industries. But is this the primary motivation for gravitating towards the sector?

To give you an idea of the salary differential, a developer with financial product knowledge can earn between 45-70k at associate level within investment banking (dependent on software skills), according figures from the JM Group, while the average UK systems development role pays around 36k, suggests the ActiveTechPros 2010 salary report.

In an interview with Wall Street & Technology, Jon Beyman, managing director of operations and technology for Citi's global institutional client group, was asked whether earning potential was the main reason the financial sector was able to attract the best and brightest tech talent.

He said that the trading business "attracts smart people because it pays very well".

"If there is a sustained period of time when there is no compensation difference between financial services and a software developer in another industry, then it might become an issue. But that is not the case right now. Financial firms still pay more for technology talent, and I am in a war for talent with other firms," he said.

"My feeling is that the majority of candidates moving into the financial sector are extremely interested in how much they can earn," says Stephanie McCoig, head of permanent technology recruitment at Astbury Marsden. "The content of the role and career development is a major factor, but usually the first question asked is about money."

But with innovation in new projects rather than maintaining existing systems the order of the day within financial services again, working in the financial sector is an appealing prospect from a career point of view, suggests Adam Pizzie, manager - IT at Robert Walters.

"Banks are rolling out some interesting projects now, especially when it comes to development, which is attracting some good people," he says. "Obviously, financial services pays more, but it's also considered a less stable career than other sectors and reward is offset by risk to some extent."

But with salaries for financial techies on the up - largely through market churn and counter-offers - are banks and financial services firms likely to look outside the industry for slightly cheaper option?

"There's a definite appetite to take on people from commerce or from the public sector," says Pizzie. "However, this is for more operational roles - financial knowledge is key for front office positions."

AUTHORPaul Clarke

Vi
Vivek
10 July 2010
yes.I work in financial technology because its mostly interesting work and gives me the money to own nice stuff and do enjoyable things with people I like and give best standard of living for my family that they deserve. If not for money do u think am i mad that much to leave friends, family and everyone we know to move halfway across the world to live in a strange country where they speak a different language and you'll always be an outsider all for the sake for a few extra numbers moving from one column to another.
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t
t
10 July 2010
obviously a recruiter asking the question. Do MBAs gravitate to finance cause of the money? do lawyers gravitate to m&a because of the money? do accountants gravitate toward finance because of the money? do recruiters gravitate towards finance because of the money?
no further comment needed
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wo
working_for_money
10 July 2010
who isnt ??? (motivated by money that is!)
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Te
Ted
9 July 2010
Are financial technologists mainly motivated by money? Yes
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vo
volleyballs
9 July 2010
Of course it is the pay differential with other industries. But also, there is the real prospect of seeing front-office IT as a route to the front-office if you can't get in as a graduate. I joined Accenture in 05 in a project at a European IB with 3 other entry-level analysts on my team. Two became equity derivatives traders, one at SocGen in 07 and the other at GS last year. The other stayed a techie and is now a VP at Morgan Stanley. The transition for most is a dream but can occur and is a significant factor along with the obvious pay differential vs other industries.
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