The media coverage of FinTech is predominantly focused on young, technology-oriented, Facebook generation. This focus seems to overlook a big chunk of the blockchain world: while FinTech is truly popular among millennials, an important group of Сryptonomics leaders are ex-banking workers.

BANKEX team itself is a great illustration of it: many product developers, including BANKEX founder Igor Khmel, have a solid banking experience. Although this seems counterintuitive at the first glance, it can be fully explained by the psychological profile of an average investment bank worker.

High Turnover

Investment banking now faces a grave problem of the brain drain. The reason for the talent crisis is the attitude that bank workers typically have towards the corporate behemoth. A fast scroll through all the IB-newcomer forums shows that after leaving a prestigious university, the younger generation see their Wall Street employer as 2-year continuing education with the bonus of a good CV line. Almost no-one aspires to a long-term career in banking.

This mentality of IB newcomers is proved by the data. A study of 12 investment banks accomplished by LinkedIn shows that analysts and associates who left their positions in 2015 had stayed in their roles for an average of 17 months. And these are mostly voluntary leaves: consulting firm Quinlan & Associates reported that some banks face up to $1 billion in costs of replacing voluntary leavers.

A typical banking freshman sees IB as a platform to gain skills, earn lots of money, build useful networks and, after all the fruits are ripe,, they leave for something more interesting and popular, such as tech.

Up-to-date

Good bankers are famous for always monitoring the news and being up-to-date in everything from pop-culture to press briefs in the Pentagon. Without this knowledge, it is impossible to have a tight grip on the market and understand the “animal spirits”.

When the financial news coverage consistently shifts from Wall Street to Silicon Valley and Mekong River Delta and when the New York Times “young and rich” are no longer investment bankers, but cryptocurrency evangelists, bankers start to feel uncomfortable in their previously longed-for offices.

Bankers also read a lot about the coming decline of investment banking itself: Financial Times, The Economist, even The Wall Street Journal — every popular financial news outlet writes about the grim prospects of the sphere. Moreover, it is better not to forget about robotisation and AI which is more efficient and less biased than human analysts. After reading these articles it would be hard for a bank worker not to consider moving to the other side of financial robotisation.

Prestige

The big part of investment banking’s lure has always been the prestige. For decades, bankers were considered the most talented, stylish and rich in the corporate world. Ivy league graduates were ready to work 100 hours a week not only for a big financial compensation, but also to keep the prestige. From the best school to the best job — that was the idea.

In the famous novel “Liar’s Poker” ex-Wall Street resident Michael Lewis wrote about the spirit of the banker: “The investment banker was a breed apart, a member of a master race of dealmakers. He possessed vast, almost unimaginable talent and ambition”.

Today everything has changed. Wall Street is no longer the most prestigious place to find yourself in. As Bloomberg puts it 10 years ago it seemed like everyone with a brain and big ambitions wanted to go to the Wall Street, today Silicon Valley and its tech-startup scene is the hot place to be.

FinTech and blockchain-based startups is a good way not to tear apart with finance but to continue being in the most prestigious sphere. FinTech offers everything that traditional banks now lack: interesting job, grand vision, community overwhelmed by the positive attention of media.

Why FinTech Needs Bankers

FinTech companies are ready to take their colleagues from the other side. Main values of the IB alumni: perfectionism, ability to meet deadlines and readiness for long working hours — are also needed in FinTech startups. Moreover, pursuing a goal of disrupting the banking industry, it is better to have a group of warriors from the inside.

The second reason for the demand on ex-bankers is the result of government policy towards crypto-regulation. A growing desire to regulate cryptocurrencies and ICOs puts FinTech in the same harsh environment as banks have found themselves since 2008. Today, disruptors need the experience of bankers, who struggled with the regulation, and fought with the politicians who imposed it.

Bankers are rapidly changing sides and moving to FinTech because conventional conservative Wall Street can’t continue to be the most prestigious and most influential in the new economy. People who used to be bankers and now calling themselves crypto-residents have a mindset that is attracted not only to high compensation but also to the prestige and importance of the working place. Today FinTech suits them the best. On the other hand, the crypto-world welcomes ex-bankers: their skills and knowledge about regulation are always useful in today’s environment.