Hiring in Banking and Financial Services: Increased talent flow from conventional finance to fintech
2022 saw a boom in hiring among digital banking and fintech as more people started their own companies and existing businesses ramped up transformation efforts. “Conventional banking and insurance companies have lost quite a lot of talent to these companies,” reveals Rini Kusumawardhani, Manager at Robert Walters Indonesia. “Most candidates prefer to work from home now and they were more receptive to opportunities from companies that came with hybrid work options. As a result, we also saw an increase in companies offering such work arrangements.”
Read on to find out more about Rini’s expectations of the labour market and hiring trends for Banking and Financial Services professionals in 2023.
Fintech and hybrid work to rule
The global economic trend showing an impact to several businesses within Fintech arm such as Digital Businesses, P2P Lending and Payment Digital Businesses. Investors have the tendency to be very selective before throwing-away their money, due a global crisis.
Nevertheless, industries such as Digital Banking and Insurtech will continue a good number of growing. Conventional businesses such as Banking and Insurance will strike a surprise in 2023 as everybody will eventually coming back to a stable business.
Despite the bounce back from Conventional Business within Financial Services, the culture will remain the same. Hybrid working arrangement seems to win most the people’s attention. On top of that, ESOP will continue to be one of the “nice-to-have” component in candidates’ compensation & benefit.
Business development, regulatory and investment experts needed
A variety of roles within business development will be in demand in 2023, such as retail banking, corporate banking, sales and partnerships. “Anything related to regulatory bodies will definitely be highly sought after. New businesses or ventures will require candidates that can help work with regulatory bodies and handle licenses,” notes Rini. These include roles in risk, compliance, internal audit and regulatory reporting. There will also be a strong call for investment bankers or analysts who can help new businesses in fundraising.
On the soft skills front, candidates who are agile and possess an eagerness to learn will be successful in 2023.
Secure winning talents fast
Speaking on how candidate motivations have changed in the last year, Rini remarks, “Fintech and digital banking is the hottest place to be right now, and tons of candidates from conventional businesses want to be a part of these exciting new sectors. Also, while salary is still important, candidates also keep an eye out for ESOP or shares options when exploring new opportunities. Lastly, candidates now very much prefer hybrid or remote work arrangements.”
Retaining employees in 2023 are then a matter of adapting to these motivations. “Provide flexible or hybrid work arrangements. Ensure they are well compensated, whether this is covered by their salary, ESOP or allowances. Build a sense of accountability by involving them in multiple projects and initiatives,” advises Rini.
When it comes to attracting and securing talent, Rini points to agile candidates as the winners: “These candidates have a can-do attitude and they are keen to learn. They may be more on the generalist side than having specialist-type skillsets, but they are willing to go the extra mile in their work. Our advice is to snap up these talents when you come across them.”
Companies are also advised to quicken the interview process, so they can avoid a price war against other companies for good candidates.
Involve employees in multiple initiatives to foster a sense of accountability in them.
Slightly larger pay increments than usual
Within fintech and digital banking, salaries will see a slightly above average increase as companies vie for good candidates in a new, flourishing industry.
Salaries will similarly see a slightly above average increase within conventional banking and financial services. This comes as many businesses experienced a rebound in 2022 after holding back on bonuses and salary increments during the pandemic. “Hence, 2023 is the time where companies will reward employees for sticking it out,” explains Rini.
Find out more
Request access to our 2023 Salary Survey to benchmark salaries and to find out more about key hiring trends in the Banking and Financial Services industry in Indonesia.