Some financial firms operating in Singapore and Hong Kong have delayed hiring due to the coronavirus outbreak but others are quietly laying plans to prepare for an economic rebound in Asia.

Despite the slowdown in hiring seen by some recruitment firms in the two financial centers, some lenders have moved ahead to acquire talent in the locations they view as a strategic fit. For example, U.S. lender J.P. Morgan on Monday announced the appointment of three new senior staff in Asia, with one being a newly-created role.

New digital banks, which do not need physical branches to serve clients, are also getting more staff to deal with inquiries and expanding their offerings. On job portal jobs.db.com, a search for virtual banking jobs in Hong Kong landed at least seven new listings by virtual banks such as Ping An OneConnect and WeLab this week. Meanwhile, Hong Kong's Z.A. Bank said it has received over 20,000 applications to be new customers despite the gloomy situation. 

Hiring Affected

Many domestic and foreign institutions in the two financial hubs have slowed recruitment, according to headhunters in the two cities. The hiring processes have been affected by quarantines, precautionary measures that include travel restriction to and from China, and decisions not to conduct face-to-face interviews.

«Everybody is distracted,» said Gurj Sandhu, a managing director at Morgan McKinley Group in Singapore, who was quoted in «Bloomberg» (behind paywall). While none of his clients are canceling roles, hiring has fallen in priority, he added.  

Logistical Challenges

Hiring processes and relocation plans are taking longer than usual because of logistical challenges. Bethan Howell, a Hong Kong-based consultant at Selby Jennings, gave the example of a person scheduled to relocate to Hong Kong from Shanghai for a quant fund.

The person may have to work from the client’s Shenzhen office while waiting for a visa, which is taking more time these days, she said. As a result, some lenders are considering whether to hold off on adding headcount for non-essential roles such as back-office functions, according to Mark Li, head of client solutions at Randstad Singapore. 

Decisions Still Hanging

Although some financial firms are conducting interviews by video conference or phone, closing the deal is more problematic, especially at investment banks and wealth-management units. This is because bankers are considered «big-ticket items,» said Hubert Tam, a managing partner at Sirius Partners in Hong Kong, who was quoted in «Bloomberg» (behind paywall).

Private banks and investment banks are holding off on hiring until they can meet candidates in person, even if they had a good record last year, he added.

Getting The Blessings

In fact, many private bankers with clients in mainland China would have to travel to the country to meet clients first to «get their blessings» before moving banks, according to Amod Jain, a Morgan McKinley consultant in Singapore. «Not everything can be done by phone.»

In fact, some banks have pushed back events meant to generate sales and legacy planning opportunities. A popular conference amongst financial executives - Money20/20 Asia - that was earlier scheduled to happen in March, has been moved to August, according to its website.