New statistics have revealed the average range of salaries offered to UK fintech executives, a key factor in attracting and retaining talent.

With UK fintech companies competing for talent with companies in the US and Europe, against each other in regional hubs, and with other tech industry verticals, competitive salaries are vital to the health of the industry.

Research from fintech recruitment firm Storm2 used internal data and market research to determine the current salary levels in UK fintech sector.

According to the group, executives at fintech companies generally earn around £100,000 or over.

At smaller companies, with between one and 25 employees, the worst compensated executives are the chief technology officer, chief operating officer and chief financial officer, who generally earn between £90,000 and £120,000.

By comparison, the highest paid positions are chief product officers on £100,000-120,000 and chief risk and compliance officers, who receive £120,000-140,000. Meanwhile, chief revenue officers command the largest spread between £105,000 and £170,000.

Larger companies generally follow these trends – the lowest paid positions are chief product officers and chief technology officers, while chief financial and chief operating officers receive the highest salaries.

As such, the average executive salary across all small companies is £110,000, while mid-sized companies of around 25-100 people make an average of £135,000, and execs at larger companies make an average of £150,000.

On average, chief operating officers are the least well compensated, making an average £100,000, and chief finance officers make the most, averaging £170,000 at the largest companies.

At companies with over 100 employees, all executives can potentially earn over £200,000, the research claimed.

Across all sectors in the UK, the average salary for a CEO is around £80,000, though additional incentives, such as bonuses, profit sharing and commission can boost this significantly. However, when compared to this base average salary, it illustrates how competitive the salaries offered by the UK’s fintech companies are.

Executive Chair of FinTech Scotland Stephen Ingledew said: “The advances of fintech innovation and growth in new enterprises has rapidly increased the demand for a range of new roles paying attractive salaries for those with digital and data skills.

“This growth will continue as more and more enterprises scale and look to build their talent across all disciplines. This is why the educational system and life-long training programmes need to rapidly respond to ensure the opportunities are open to more and more people to enter into fintech careers going forward.”

The UK has consistently ranked as the European leader for fintech investment. Last year, the country received $4.1 billion of investment in 408 deals. This accounts for just under half of the total European fintech investment.

Globally, the UK was the second biggest recipient of investment after the US, which received $22 billion.

Despite the challenges of 2020, worldwide fintech investment grew 14% last year compared to 2019, demonstrating the strength of the sector and its growing importance.

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As the UK is second only to the US in terms of fintech investment, American fintechs offer significant competition for talent. The average high-end salary for an executive at a mid-sized UK fintech is around £190,000, compared to £205,000 in the US. This compares favourably to Europe, where a similar executive earns around £160,000.

However, in the US, the range of salaries on offer is larger, with the highest salaries on offer. A US chief financial officer at a large US fintech can earn over £250,000, with other executives making similar amounts.

Furthermore, Storm2 noted that fintech salaries trend around 5%-15% higher than software as a service businesses and 12%-15% above creative fields such as digital and media.

London continues to dominate the UK’s fintech sector, with higher salaries helping attract talent. Even regional hubs such as Cambridge, Bristol, Southampton, Oxford, and Edinburgh offer salaries 8-20% lower than London depending on seniority or complexity of position.