finews.asia speaks to Natasha Madhavan at financial recruitment specialist Selby Jennings in Singapore about hiring trends in banking, as the upcoming introduction of non-traditional, non-bank players are set to shake up the sector.
Natasha Madhavan, as a recruiter in the banking and finance industry, how is tech and digitalization shaking up hiring in this sector?
There has been a lot of structural change within the banking sector in the past few decades thanks to a wider agenda of digital transformation. For instance, as more banks promote digital banking and cut down on their brick-and-mortar retail shops, there may be less demand for bank tellers but more demand for back-end online platform engineers. We’re continuing to see this happen on multiple fronts as banks explore how they can better utilize technology to cut costs and be more lean and agile.
«We’re seeing increasing demand for candidates with data analytics, quantitative and actuarial skills in the market»
We’re seeing increasing demand for candidates with data analytics, quantitative and actuarial skills in the market. In times like these, I encourage candidates to keep an open mind and enhance their personal skills in today’s technology-driven market. If you’re entering most workplaces today, not just in financial services, you will need to be adept at using and learning technology because it has become an integral way of how we work and live.
How will the entry of virtual banks into Singapore affect ordinary employees in banking and finance?
Employers can expect to face increased costs in hiring and retention of their top talents and employees can expect to see more favorable terms of employment and wider career choices across commercial and banking sectors. What’s interesting is that we have seen companies offering employees more attractive equity stakes, benefits and even flexible work arrangements that will increase the competition in securing niche and top talents in this market.
«Employees can expect to see more favorable terms of employment and wider career choices»
There will be greater scrutiny over the core skills for people entering the financial services industry today, ultimately because of increasing demand for professionals in this sector with technological savvy and digital skills.
What other hiring trends are you observing among global banks and financial institutions in Asia?
There are a lot of hires that are focused on digital transformation and cloud-based projects – the conventional banks are trying to enhance their digital and cloud capabilities so as to keep up with the emerging fintechs. Candidates have expressed interest in roles where they can work on innovative technology and implement new initiatives and products. Conventional banks have to be more active on this front for staff retention.
The smaller fintechs offer lower salaries as a base but usually offer more upside on variable bonuses and other components such as equity/Employee Share Options Service (ESOS). Candidates who join with lower bases are then more incentivized towards advancing and growing the business. There are also bigger and more established fintechs, which aren’t technically in startup mode anymore, which are starting to pay just as competitively as the banks. Traditional banks will need to be aware of this and adjust their employee salaries for better staff retention.
«[The jobs market] will become more competitive as many employees will now compete for limited roles»
Deutsche Bank’s cuts reflect an overall slowdown across Asia banking sector and many employees and candidates alike will now face new challenges in a shrinking market. It will become more competitive as many employees will now compete for limited roles and they will have to think of more creative ways to stand out.
