Report by Bitget Reveals 33% of Cryptocurrency Job Seekers Come from the Banking Industry
Leading global cryptocurrency exchange and Web3 company Bitget has released a comprehensive report showing that one-third of cryptocurrency job seekers have previously worked in banks and the financial industry. The report also provides valuable insights into the impact of decentralized technology on banks in 2023 and analyzes the effects of remote work and digitization on the financial job market.
Report Summary:
– 33% of exchange job seekers have previous experience in the banking industry.
– By 2031, blockchain retail banking investment will reach $40.4 billion.
– Bank revenues will decrease by 50%, leading to over 70,000 job cuts between 2020 and 2023.
– 36% of blockchain-related positions are remote jobs, twice the global average of 16%.
– Salaries in cryptocurrency startups are almost double those in comparable banking positions.
– 23% of candidates apply for positions such as KYC managers, compliance officers, senior compliance officers, and anti-money laundering analysts.
The report delves into major events driving the adoption of blockchain in traditional banking in 2023, including initiatives by giants such as HSBC, JPMorgan Chase, and Citigroup to apply decentralized technology. It is predicted that by 2031, blockchain’s impact on the retail banking industry will reach a milestone of $40.4 billion, with a compound annual growth rate of 40.4%. Expenditure on blockchain by the banking industry is expected to reach $22.5 billion between 2025 and 2026.
The main section of the report specifically explores hiring trends in the blockchain industry, emphasizing that talent in the financial industry is being lured by high salaries and innovative prospects, leading to a talent drain from traditional banking. This has prompted the latter to reassess their recruitment methods and compensation packages.
Statistical data in the report shows that in 2020, the number of tech-related job vacancies in the UK alone increased by 46%, accounting for one-third of all recruitment positions. Goldman Sachs exemplifies this issue, with 30% of its employees being software engineers.
The shift of young employees towards tech work is also a significant factor, further weakening the workforce in banks. The outflow to the high-tech industry has been to some extent balanced by companies like Coinbase, Amazon, Alphabet, and Microsoft, which have recruited between 20 and 200 employees in these sectors. The cryptocurrency industry has led the talent recruitment boom, with Coinbase attracting 197 talents and Amber Group attracting 250 talents. Despite the FTX crisis in 2022 leading to the loss of over 2,000 jobs in the industry, this trend still persists.
In terms of salaries, the report points out that banks have reduced overall salaries due to remote work conditions and digitization, while the cryptocurrency industry offers competitive high salaries for remote employees. In 2022, 36% of blockchain-related positions were remote, double the global average of 16%. In terms of compensation, entry-level engineers in London-based cryptocurrency startups receive a starting salary of around $125,000 with bonuses, compared to $87,810 offered by investment banks for similar positions. The average salary in banks is $54,000, while the average salary in cryptocurrency companies is approximately $115,667, highlighting a significant gap between the two.
The Bitget report also emphasizes the talent outflow from the banking industry by using the number of resumes submitted. The report indicates that the number of resumes related to the banking industry increased by 113% in 2022 and 143% in 2023, with a total increase of 82% within two years, reaching 1,440 resumes. This means that 33% of resumes in 2023 come from the banking industry. Interest from professionals outside the cryptocurrency market has also almost doubled, growing from 180% to 330% within two years.
The most common positions are in investment relations, business development and sales, KYC and compliance, data analysis, product design, project management, and backend engineering. 23% of job seekers apply for positions such as KYC managers, compliance officers, senior compliance officers, and anti-money laundering analysts.
High salary, industry reputation, development opportunities, and flexibility are considered the main reasons for employees to migrate to the cryptocurrency industry. Banks have been slower to respond. According to a Deloitte survey, 74% of CFOs stated that they plan to transition previous internal employees to remote positions.
Bitget General Manager Gracy Chen stated, “The latest Bitget report shows significant changes occurring in the financial job market, with a strong momentum in the cryptocurrency sector reshaping traditional banking. The data indicates that talent in the banking industry is being attracted by high salaries and innovative prospects, leading to a shift towards the cryptocurrency field, which is a major shift. This transition may lead to increased mergers in both markets, affecting layoffs and changing the labor market. As the cryptocurrency industry continues to thrive, we will continue to provide valuable insights to help professionals and market participants navigate these ever-changing environments.”
Bitget also continues to recruit talents globally, expanding and developing in various markets. This report provides valuable information for professionals and related workers, helping them gain insights into potential changes and development opportunities in the industry.
