Banks are now serious contenders for top tech talent
For years, if you were a top-tier developer, the decision was easy: head straight to Silicon Valley. That’s where the best tech, the highest salaries, and the biggest opportunities were. Google, Microsoft, and the rest of the FAANG companies were the ultimate destination. That’s changing fast.
The financial services industry is transforming at a fundamental level. Big banks are now aggressive players in the talent race. This shift is fundamentally redefining what a bank is and what it can do with technology.
There’s a simple reason for this: technology is now central to finance. Whether it’s AI-powered trading algorithms, machine learning for risk analysis, or ultra-secure cloud computing, banks are investing billions into making sure their tech stacks can compete with—and even outperform—those in big tech. Meanwhile, big tech itself has lost some of its shine. Layoffs, economic uncertainty, and forced returns to office work have disrupted the once rock-solid appeal of these companies.
“Some of the world’s best software engineers are taking a second look at finance. The Wall Street Journal recently pointed out that “the coolest job in tech might actually be at a bank.” A decade ago, that would’ve been unthinkable. Today, it’s a real possibility.”
Banks are investing in the best technology and it’s paying off
If you’re a developer, you want to work on cutting-edge tech. The idea that only big tech companies offer that kind of work is outdated. Banks have made massive investments to close the gap.
Eric Paulsen, an industry veteran who’s worked in both big tech and finance, put it simply: “Banks are now much more aggressive in their pursuit of top tech talent.” That’s because they’ve had to be. The old way of doing things—where banks ran legacy systems while big tech got all the innovation—just doesn’t cut it anymore.
Now, banks are heavily investing in AI, machine learning, and cloud technologies. JPMorgan, Goldman Sachs, and Capital One have completely modernized their tech stacks, shifting to cloud-based platforms and hiring top AI engineers to make sense of the vast amounts of financial data they process every second.
What’s exciting about this shift is that banks are pioneering new applications for new tech. Finance generates massive datasets, and when you apply AI and predictive modeling to those datasets, you unlock insights that can move markets.
Lucas Botzen, CEO of Rivermate, summed it up well: “This is now a far more dynamic and exciting environment for engineers.” And he’s right. The finance sector is creating the future of fintech in real time.
The pay gap between big tech and banking is closing
For years, one of the biggest reasons developers chose tech over finance was simple: the money was better. Big tech companies offered massive salaries, stock options that could turn into life-changing wealth, and perks that made even the toughest jobs look attractive. But things are different now.
Paulsen puts it bluntly: “The appeal of a career at a big tech company is fading.” And the data backs him up. With layoffs, hiring slowdowns, and stock-based compensation becoming less predictable, the financial incentives of big tech aren’t what they used to be. At the same time, banks are stepping up. Compensation in finance has become highly competitive, with salaries and bonuses that match—or even exceed—what top developers can get in tech.
The perks are evolving too. Banks are offering the kinds of benefits that were once exclusive to Silicon Valley: flexible work arrangements, wellness programs, and education stipends. These are major selling points for developers who want high pay without the instability that tech jobs can bring.
Botzen points out another key factor: “Banks are catching up with the lavish perks formerly associated with big tech, just as those companies are starting to retrench.” In other words, banks are getting more attractive just as big tech is losing some of its shine.
“For developers who once saw big tech as the only real option, banking is now looking like a smarter bet. The numbers, the perks, and the opportunities are all lining up.”
Banks are no longer just for bankers
Once upon a time, if you weren’t wearing a suit and working 80-hour weeks, you didn’t belong in finance. The culture was intense, aggressive, and—let’s be honest—built around a very specific type of professional. That’s no longer the case.
Banks have been quietly reinventing themselves, and the shift is paying off. Over the past decade, financial institutions have actively reshaped their workplaces to be more inclusive, flexible, and appealing to top tech talent. Matt Collingwood, Managing Director at VIQU IT Recruitment, has seen this shift firsthand: “In the past 10 to 15 years, there has been a considerable effort in the sector to change their reputation as an employer.”
One of the biggest changes? Diversity and inclusion. Banks have made a real effort to recruit a broader range of talent, particularly women and underrepresented groups in tech. A more inclusive work environment attracts a larger talent pool, and banks need every advantage they can get.
Contrast this with recent comments from Meta’s Mark Zuckerberg, who called for more “masculine energy” in tech. The banking world, which once had that reputation, is moving in the opposite direction—creating workplaces where developers feel valued and have long-term career opportunities.
Beyond diversity, there’s also stability. Unlike tech startups that prioritize rapid growth over job security, banks offer well-structured career paths, clear promotion trajectories, and long-term financial incentives. For developers looking for impact without instability, banking is an increasingly attractive option.
How geography shapes the banking vs. tech decision
Where you work matters—especially when it comes to tech jobs. In the U.S., big tech is still concentrated in a few expensive cities: San Francisco, Seattle, and New York. That means high salaries, but also sky-high living costs. If you’re not willing to relocate to one of these places, your options shrink fast.
Banking, on the other hand, has a much broader geographical footprint. Financial hubs like London, Frankfurt, and Singapore have deep pools of engineering talent, largely thanks to government-backed investments in STEM education. As Eric Paulsen explains, “Germany has recently become a hub for technology businesses, with traditional German manufacturers also morphing into software-first companies.” That shift has created an engineering pipeline that banks are eager to tap into.
In Europe, the finance industry is a natural home for top tech talent. The UK has invested heavily in developing a tech workforce, and London remains one of the world’s leading financial centers. Banks have easy access to highly skilled developers without the talent pool being locked into one city.
In the U.S., it’s a different story. Banks have hubs in multiple cities, including Charlotte, Dallas, and Chicago, in addition to New York. Unlike tech companies that are concentrated in Silicon Valley, financial institutions have the advantage of being closer to major client bases, regulatory bodies, and global markets. That geographic diversity gives banks a recruiting edge—they can offer high-paying jobs without requiring developers to move to one of the most expensive places on earth.
The talent war is no longer one-sided
A decade ago, tech firms could call all the shots. They had the best talent, the biggest salaries, and the most exciting work. Today, that’s no longer the case. The playing field has leveled out.
Lucas Botzen, CEO of Rivermate, sees this shift firsthand: “Big tech still holds a lot of sway in the talent market, but it doesn’t quite have the free rein it once did, and the pressure to retain talent is higher than ever.”
What’s driving this change? First, banks have successfully built a compelling case for tech talent. They offer cutting-edge work, competitive pay, and a long-term career path that isn’t as vulnerable to market downturns. Second, big tech itself has stumbled. Layoffs, hiring freezes, and unpredictable stock-based compensation have made these jobs riskier than before.
Paulsen sums it up well: “The gap between big tech and big banks as a career choice is smaller than ever.” While big tech still leads in some areas—especially in bleeding-edge innovation —where banks are catching up too.
“For software engineers, this means they have more leverage than ever. They don’t have to settle for the same handful of companies. They can choose between building the next social media algorithm or revolutionizing global finance with AI.”
Key executive takeaways
- Banks have become major players in tech talent acquisition: Financial institutions are aggressively recruiting top developers, leveraging layoffs in big tech and offering competitive salaries, stability, and cutting-edge technology to attract talent.
- Investment in AI and cloud is driving banking innovation: Major banks have modernized their tech stacks, integrating AI, machine learning, and cloud platforms to handle massive financial data sets, making them attractive workplaces for engineers seeking impactful projects.
- The compensation gap between finance and tech has narrowed: Historically, FAANG companies dominated with higher salaries and perks, but banks now offer comparable pay, performance bonuses, and flexible work arrangements, making finance a viable alternative for top talent.
- Cultural shifts are reshaping banking as a career path: Banks have moved away from rigid, finance-driven environments to embrace diversity, inclusion, and a tech-driven mindset, attracting developers who seek stability without sacrificing innovation.
