Layoffs Hit 50% of Finance Companies Surveyed; Also Facing Shortages in Fintech and AI Expertise

Rhea-AI Summary

Fiverr (NYSE: FVRR) has published a comprehensive report, “Strategic Insights: Leveraging Freelance Talent in Finance,” shedding light on the current challenges and trends in the finance sector. Layoffs have impacted 50% of finance companies, while a talent shortage in fintech and AI expertise persists. Despite these hurdles, 64% of executives are optimistic about AI, with many witnessing improvements in efficiency and decision-making.

Freelancers play a vital role in addressing workforce gaps, with 66% of finance firms leveraging freelance talent weekly. Key skills sought include fintech innovation (24%) and AI expertise (18%). The report also highlights a shift towards hybrid work models, with 78% of executives noting productivity gains. Executives are particularly focused on outsourcing tasks like financial reporting (22%), strategic planning (19%), and audit preparation (16%).

Data was collected from 501 US finance business leaders between May 10 and May 22, 2024, emphasizing a strategic move towards freelance integration to navigate economic and regulatory challenges.

That being said, a majority of executives surveyed hold a positive view of AI, with 64% expressing optimism about the new technology

NEW YORK, June 26, 2024 (GLOBE NEWSWIRE) -- To help executives understand, react, and adapt to the ongoing challenges within the finance industry, Fiverr (NYSE: FVRR) has released a new report, Strategic Insights: Leveraging Freelance Talent in Finance. The report dives into pain points in the sector, including in which quarter leaders feel the most stressed (the second quarter) and offers insight into how executives in the sector are adapting to and overcoming hurdles; two-thirds of respondents say they are leveraging freelancers on a weekly basis. ‘Fintech Innovation’ and ‘AI Expertise’ are among the skills requested in new hires.

"In finance, especially during our busiest times, freelancers are not just a temporary fix – they're part of the strategic approach to ensure that core teams remain productive and efficient,” said Maya Roisman, General Manager of Fiverr Pro. “By bringing in experts for specialized tasks, finance leaders significantly reduce the strain on permanent employees, enabling them to prioritize critical projects and drive innovation, which boosts overall job satisfaction and retention."

Key findings from the national data include:

The Primary Obstacles and Pain Points of Financial Companies Surveyed:

• Major obstacles include adapting to changing customer expectations (according to 27% of managers) and addressing sustainability and social responsibility measures (26%).
• Cybersecurity threats and technological disruption are critical hurdles for 26% of firms
• Additionally, firms struggle with regulatory compliance (25%) and economic volatility (24%).
  

Mixed Industry Impressions and Attitudes Around DeFi and AI:

• A majority of executives surveyed hold a positive view of AI, with 64% expressing optimism and 25% reporting significant improvements in efficiency and decision-making.
• When it comes to AI integration, 55% of executives say it has met or exceeded their expectations, although 16% have experienced mixed results.
• About 26% of executives are heavily invested in DeFi, viewing it as a transformative force in decentralizing financial transactions; however, 43% express concerns over regulatory clarity and security issues.
• 35% believe DeFi could significantly disrupt traditional banking institutions, while 42% see it as both a challenge and an opportunity for the sector as a whole.
  

How Finance Companies are Navigating Changing Workforce Dynamics and Skills Shortages:

• Over 50% of executives surveyed report increased difficulty in sourcing skilled employees, prompting 62% to boost their hiring of freelancers.
• Turnover is skyrocketing across the industry; 68% of respondents noted an increase and 50% of executives at finance firms reported layoffs.
• Skills executives hope to add to their team include ‘Fintech Innovation’ (24% of respondents) and ‘AI Expertise’ (18%).
• There is a renewed focus on hybrid models and employee benefits, with a majority of executives (78%) reporting productivity improvements with these new work models and management strategies.
  

How Finance Companies Leverage Freelance Talent to Build a Flexible Workforce:

• 66% of finance companies are already using freelancers weekly to boost operational flexibility.
• In terms of usage, 38% of companies integrate freelancers into teams and assign them independent tasks while 26% have freelancers lead projects.
• 83% of executives surveyed are open to hiring freelancers to manage high-stress periods, with key areas for outsourcing include financial reporting (22%), strategic planning (19%), and audit preparation (16%).
  

To learn more about the report’s findings and how companies are adapting to the evolving landscape of the finance industry today, you can read the full report here.

This paper was conducted in partnership with Censuswide among a sample of 501 business leaders in US finance that use freelancers (medium and large firms only). The data was collected between May 10, 2024 and May 22, 2024. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct which is based on the ESOMAR principles.

About Fiverr
Fiverr’s mission is to change how the world works together. We exist to democratize access to talent and to provide talent with access to opportunities so anyone can grow their business, brand, or dreams. From small businesses to Fortune 500, over 4 million customers worldwide worked with freelance talent on Fiverr in the past year, ensuring their workforces remain flexible, adaptive, and agile. With Fiverr Business Solutions, large companies can find the right talent and tools, tailored to their needs to help them thrive and grow. On Fiverr, you can find over 700 skills, ranging from AI, to programming and 3D design, digital marketing to content creation, from video animation to architecture.

Don’t get left behind - come be a part of the future of work by visiting fiverr.com, read our blog, and follow us on Instagram and Facebook.

Media Contacts:
Laura Podesta
Tommy Lee
press@fiverr.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5dc64029-c9b9-40cc-88be-11b9a6e153cf

FAQ

What are the main challenges faced by finance companies as per Fiverr's report?

Finance companies are grappling with changing customer expectations (27%), sustainability measures (26%), cybersecurity threats (26%), regulatory compliance (25%), and economic volatility (24%).

How are finance companies addressing skill shortages according to Fiverr's report?

Over 50% of finance executives report difficulty in finding skilled employees, leading 62% to increase their hiring of freelancers, particularly in fintech innovation (24%) and AI expertise (18%).

What is the role of freelancers in finance companies as per the latest report from Fiverr?

Freelancers are important for operational flexibility, with 66% of finance companies using them weekly. Freelancers are often integrated into teams, assigned independent tasks, or lead projects, especially during high-stress periods.

How are finance companies benefiting from hybrid work models according to Fiverr's findings?

A majority of executives (78%) report productivity improvements with hybrid work models, which combine remote and in-office work, enhancing work-life balance and efficiency.

What is the sentiment towards AI in the finance sector based on Fiverr's report?

64% of finance executives hold a positive view of AI, with 25% noting significant improvements in efficiency and decision-making, and 55% stating that AI has met or exceeded expectations.

Which tasks are finance companies outsourcing to freelancers as highlighted in Fiverr's report?

Finance companies are outsourcing tasks such as financial reporting (22%), strategic planning (19%), and audit preparation (16%) to freelancers to manage workload and improve efficiency.

What is the impact of economic volatility on finance companies based on Fiverr's survey?

Economic volatility is one of the critical challenges for finance companies, with 24% of executives identifying it as a significant obstacle, prompting a strategic shift towards freelance hiring to maintain operational stability.