OpinionFrom code to capital: How tech professionals are finding new avenues in finance
Opinion
From code to capital: How tech professionals are finding new avenues in finance
“While this has been a difficult year for many pursuing a career in technology, there are bright spots where tech talent remains in high demand. For some, I believe it will mean shifting their mindset around what it means to work in technology to see the range of opportunities in other industries, like finance,” writes Itay Lotan, Head of Millennium Israel Tech Center
A study published last month by the recruitment company Handshake pointed to a new trend among university graduates of technology studies in the United States: over the last two years, the volume of resumes intended for internet and software companies has fallen from 40% to 25%. And it’s not just for recent graduates – a similar sentiment is brewing amongst more experienced employees in the high-tech field. A June 2023 study by Boston Consulting Group found that 60% of tech employees who were laid off and found a new job are willing to consider opportunities outside the high-tech sector.
It raises an important question: what is behind this transformational shift, and where is all the tech talent going?
According to the Handshake report, as internet and software companies experienced a drop in applications, there has been an increase in job applicants who studied technology in other industries, with the most prominent industries being non-software tech companies (e.g., IT and semiconductors) and the financial sector
As a technologist who has worked at financial companies for over a decade, this comes as no surprise. At Millennium, for example, applicants from big tech to the firm increased 300% between 2022 and 2023. In fact, some of the most innovative companies I know sit at the intersection of finance and technology. The financial markets are subject to ever-changing market conditions, and investment managers need sophisticated tools and technology to help navigate this complexity. I believe these tools can provide new ways of looking at financial markets, allowing portfolio managers to zoom into micro structures, and to zoom out to unveil relationships in markets that couldn’t be seen before.
In my view, some of the most promising applications of artificial intelligence, for example, are in the field of investment management. While start-ups are often seen as drivers of innovation like recent advances in AI, you can find the same dynamic and highly innovative culture in certain pockets of finance but often with the resources of a global firm to incubate new ideas. In this way, a career in finance can offer the best of both worlds.
This trend - of technologists seeking opportunities outside of the traditional definition of the tech industry - is also true in Israel. According to a study by the Israeli Innovation Authority, the number of employees in tech roles outside of the tech industry has grown in the past decade by over 30%. Although layoffs in the high-tech sector have exacerbated this trend, it began far before then. Organizations worldwide are undergoing a digital transformation where technology has become central to their business model and a driving force for efficiency and growth.
These organizations understand that technology is not just a nice-to-have, but is critical to their survival. Just look at the data, financial services organizations worldwide were forecasted to invest over $650 billion into their technology capabilities in 2023, according to a Gartner study. As the investment in technology increases among financial services, so has the demand for skilled tech employees. It is not surprising that in recent years we have seen large global financial players opening innovation and research and development centers in Israel. Millennium is one of them, but they also include global banks, credit card companies and others seeking tech talent.
While this has been a difficult year for many pursuing a career in technology, there are bright spots where tech talent remains in high demand. For some, I believe it will mean shifting their mindset around what it means to work in technology to see the range of opportunities in other industries, like finance. Many already have, including at Millennium where about a quarter of our employees globally work in technology. It’s one of the many reasons we are excited to be here in Israel, where we continue to grow our technology teams.
Itay Lotan is Head of Millennium Israel Tech Center
