must-watch talent movements in the banking and financial services sector

1. front office professionals are still in-demand

More front office professionals are seeking new job opportunities with employers that can offer a better career progression or a more competitive package, especially for those who have been holding out for better opportunities over the past 2 years. This is also true for professionals who expect their current employers to tighten the company’s operating budget in the next few months.

For example, there are opportunities for offshore private and priority bankers, corporate and commercial bankers with regional portfolios and investment bankers to grow in their roles. They could acquire more customer accounts, manage higher asset under management (AUM) from high-net-worth (HNW) clients or secure mandates from the regional markets which have been delayed over the past two years.

2. talent movements expected in compliance and risk management

We expect to see some talent movements of senior and middle-level compliance and risk management professionals as they look for both career growth opportunities and exposure to new industries like fintech.

In anticipation of a higher economic growth and more stringent regulatory requirements and reportings, banks are seeking qualified talent with a track record in navigating the regulatory landscape and new financial policies.

Front-middle job functions like KYC and client due diligence, trade support and global market operations are expected to be in-demand throughout the second half of 2022. Tax planning and compliance in particular within the private banking segment are also expected to pick up during this period.

3. fintech and digital banks are going full-force

As people become increasingly aware of the volatility and tightening regulations in the cryptocurrency market, more talent are attracted to digital banks as well as other more established and stable fintechs such as payments, insurtech and regtech.

Singapore’s fintech industry has managed to capture a bigger share of global investments, doubling its market share by deal value from 3.1% in 2021 to 6.4% in Q2 of 2022. With fintech covering the domains of climate change, supply chain, market infrastructure, artificial intelligence and agritech, we expect to see more business growth and new jobs from the industry.

Fintech firms are positioning themselves differently from traditional banks to attract skilled and professional talent. What contributes to the employer brand attractiveness the fintech industry is that they put greater focus on employee's career growth, reflecting the experimental working environment that is not often seen in traditional banks which are more structured in nature.

Within the fintech ecosystem, it is more important to employers that their staff take the initiative to upskill on-the-job and learn through partnerships and collaborations. These learning opportunities are highly valued by employees, which would help prevent talent loss as well as boost morale and competitiveness within the organisation.

Likewise, working professionals also have a different set of expectations when it comes to working for a fintech employer. Career growth opportunities are very attractive, but banking and financial professionals are not compromising on total remuneration benefits, such as a high base salary, bonuses and other employee benefits.

Out of the four digital banks that were awarded the digital banking licences by the Monetary Authority of Singapore (MAS) in December 2020, two wholesale banks soft launched their services in June 2022, with the official launch expected to happen in 2023/24.

Veterans from various global and local banks, as well as leading IT companies, have moved over to the digital banks to form a diverse leadership team. In the coming months, we expect to see more job opportunities for middle-level professionals being offered by digital bank licensees as they build their capabilities in anticipation of their launches in Singapore.

Fintechs and digital banking licensees should continue to invest in building their employer brand and employee value proposition to further differentiate themselves from their competitors and improve their ability to attract new talent.

recognising that there are different talent expectations to meet after COVID

Already, many financial services institutions have adjusted the workforce’s salary ranges up by 5% to 10% to reflect post-COVID expectations. Companies have also improved their employee rewards and recognition programmes to better attract and retain talent in today’s talent shortage climate.

There have been a few instances where a certain role has a salary increase of more than 10%. This is largely due to the company’s attempts to retain these employees with niche and highly specialised skills within the organisation.

But are salary adjustments enough to attract and retain talent?

One common mistake many companies make is to assume that job applicants will accept their offer as long as it’s more than what their previous employer is paying them.

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