4 min read

Are you weighing FinTech startups vs banks as your first gig – or your next move? Good news: both paths lead into financial services, but they feel very different on the inside.

Read on for a complete FinTech startup & banking comparison to figure out where your skills and ambitions fit best.

FinTech startups vs banks: The big picture

At a high level, FinTech startups are nimble, tech-driven companies trying to reshape how money moves, grows, and gets managed. Think digital payments, automated investing apps, online banking platforms, blockchain products, and more.

Traditional banks, on the other hand, are established financial institutions offering a broad range of services. That can mean from retail savings accounts and loans to global corporate finance. They move slower but manage massive amounts of capital, customers, and long-standing regulatory frameworks.

Here’s how they stack up when you’re choosing where to start a career.

1. Culture & work environment

FinTech startups

– Fast-paced, flexible, innovation-driven. Startups live and breathe change – rapid product iterations, tight teams, and cross-functional roles.

– You’re more likely to wear multiple hats: marketing one day, product brainstorming the next.

– Often remote-friendly with lean hierarchies.

– Great for those who thrive in ambiguity and love to learn in public.

Banks

– Structured, process-oriented, stable. Banks have well-defined career tracks and roles.

– Teams and responsibilities are usually specialized (e.g., credit analyst, compliance officer).

– Hierarchy and regulatory oversight mean change happens slowly but predictably.

Quick tip: If you want rapid innovation and impact, FinTech startups might feel more energizing. If you prefer order and clear progression, FinTech and banking industry players could be a better fit.

2. Career growth & job security

FinTech startup jobs

– Broad exposure early on. You’ll gain experience across functions and may rise quickly as companies scale.

– Expect flatter hierarchies, where a title boost may come before a big pay jump.

– Some startups crash, scale, pivot, or get acquired, which can feel exhilarating or unstable.

Banking careers

– Clear ladders and stability. Banks offer long-term paths with predictable pay bands, performance reviews, and formal training.

– Often seen as “career foundations” for financial professionals, especially in corporate finance, risk, compliance, and regulated operations.

Insight: Banks may offer steadier security and structured growth. FinTech startups may accelerate your development, but often with more risk.

3. Skills you’ll build

In FinTech startups

– Strong tech mindset and digital fluency.

– Product focus: rapid prototyping, user testing, agile workflows.

– Cross-disciplinary collaboration: tech + finance + marketing.

You might find yourself in roles like:

1. Product Manager

2. Software Engineer / Developer

3. Data Scientist / Analyst

4. UX/UI Designer

5. Growth / Marketing Specialist

6. Risk & Compliance in digital finance

In banks

– Deep financial fundamentals: lending, risk, portfolio management.

– Regulatory compliance and governance know-how.

– Structured processes for reporting, auditing, and controls.

Typical roles include:

1. Credit Analyst

2. Investment Banker

3. Relationship Manager

4. Risk & Compliance Officer

5. Treasury or Operations Specialist

Bottom line: FinTech leans heavily on digital and product skills; banks prioritize finance fundamentals and regulatory expertise.

4. Compensation & benefits

FinTech startups might offer competitive salaries plus equity or options, so compensation can feel volatile but potentially generous if things go well.

Banks often provide strong base salaries, bonuses, pensions, and clear benefits. That means a reliable paycheck with incremental rewards.

For early-career roles, FinTech startups sometimes compete aggressively for talent, especially in areas like engineering and product roles.

5. How to start a career in Fintech

Wondering how to break into this space? Here’s how people typically do it:

Develop relevant skills

– Combine finance knowledge with digital stuff: data analysis, coding, product management.

– Tech-oriented certifications can help (AI basics, blockchain fundamentals, data analytics).

Network & explore internships

– Attend industry meetups and FinTech events; connect with professionals on LinkedIn.

– Internships or project work at startups give you real experience.

Bridge from banking or tech

– Many professionals start in traditional finance or tech, then transition into FinTech roles once they’ve built core capabilities.

Target specific roles

FinTech startup companies hire for:

1. Tech roles (developers, engineers)

2. Product & project roles

3. Finance & operations

4. Risk, compliance & AML/KYC specialists

5. Growth & data analysis roles

6. FinTech vs Banks: Which one should you choose?

There’s no one-size-fits-all answer, but here’s a simple guide:

Choose FinTech startups if you:

1. Enjoy rapid learning and change
2. Love technology and innovation
3. Want broad responsibilities
4. Are comfortable with ambiguity

Choose banking if you:

1. Prefer structure and defined roles
2. Like clear progression and stability
3. Are drawn to traditional finance expertise
4. Enjoy regulated, large-scale systems

Why study the Master in Financial Technology?

If you’re stuck in the FinTech startup & banking comparison, the real question is how fast you want to build both sides of the skill set – finance fundamentals and the tech that’s reshaping the industry. Our Master in Financial Technology is designed to sit right at that intersection, blending finance, technology and data analytics so you can move into modern financial services without picking one lane too early.

What makes it especially career-relevant is how practical it is. You’ll be doing hands-on projects from day one, including datathons, venture-building labs, tech bootcamps and a final capstone where you solve a real problem for a company, conduct applied research, or build your own venture. Along the way, you’ll also work with tools like Python, SQL, GitHub, Linux and more.

You also get proximity to the ecosystem you’re trying to enter. The program highlights collaboration with top FinTech companies and global partnerships with sector players like Ripple and Infosys, with Madrid positioned as a fast-growing tech hub. That combination maps to roles on both the startup and bank side of the market – from financial data scientist and quantitative risk analyst to blockchain developer, payment systems architect and software engineer.

Want to weigh up your options? Read our guide on whether a FinTech master’s degree is worth it.

Want to get back to basics? Read our guide on the definition of FinTech.

Interested in the industry’s main players? Read our guide on the top FinTech companies.

Want to see how we support our students? Read our guide on IE mentorship in tech.

Looking to take the next step? Read our guide on how to get a job in FinTech.