Fintech boards lack AI skills needed to drive future growth, survey finds
Company boards of the UK’s top fintechs lack the necessary skills in fundraising and artificial intelligence, a new survey shared with City PM has suggested, which could hold back future growth for the sector.
According to a survey of over 40 leading fintech chiefs and chairs, almost half (47 per cent) claimed their board has a skills gap in this area and does not have the requisite level of expertise in Generative AI, or GenAI.
In addition, only 42 per cent believe their board has the necessary skills in fundraising, of which 30 per cent say this is the biggest single gap on their board, according to the survey conducted by EY.
The study also flagged problems with diversity in the sector.
The research found that the UK’s top 50 FinTechs currently record just 22 per cent female representation on average at board level – well below the FCA’s minimum 40 per cent female board representation. Nearly 40 per cent of those surveyed have no women sitting on their boards at all.
However, to help address these skills and diversity issues, 34 per cent of respondents said they were in the process of hiring new board-level talent, while 21 per cent said they are engaged in improving board members’ skills in these areas.
Anita Kimber, UK Partner and Fintech Policy and Ecosystem Leader at EY, said that improving board members’ skill levels, and making them more diverse, was crucial to making sure Britain’s fintechs can realise their full potential.
“Our research finds without doubt that boards are key to UK fintechs achieving scalable and sustainable growth, and going one step further, that diversity of gender, skills and backgrounds can represent the difference between success and unrealised potential,” Kimber said. “The UK is home to a world-leading fintech sector, and there is much to lose if firms do not prioritise strategic guidance, purpose and diversity of all kinds.”
Commenting on the findings, Janine Hirt, CEO at Innovate Finance, said: “To ensure UK fintech continues to grow from strength-to-strength… we believe it is important that startups begin to build effective boards from the beginning of their scaling journey, and continue to prioritise board effectiveness and diversity.”