Redundancies in the fintech and digital banking space have driven more professionals back to conventional businesses in the sector like banks and insurance companies. According to Rini Kusumawardhani, a manager who presides over Robert Walters Indonesia’s Banking, Financial Services and Legal divisions, this comes as more companies are undergoing digital transformation and minting their own fintech business units. She notes,
More investors and multinational corporations have also set up shop in Indonesia, entering the market by acquiring local businesses or establishing representative offices.
Workers have also found themselves resuming their daily commutes as more companies revert to a full-time work-from-office arrangement.
Read on to find out more about Rini’s expectations for Indonesia’s labour market and hiring trends for Banking & Financial Services professionals in 2024.
Conventional businesses in the sector such as banks, insurance companies and multi-financial services companies are expected to contribute significantly to hiring demand in 2024, particularly as these companies as perceived as more stable. There will also be more of a spotlight on candidates with both conventional finance, and fintech or digital experience.
Looking ahead, companies who are firm on maintaining a full work-from-office arrangement may face more challenges with talent attraction and retention. “Candidates still prefer hybrid work models, so these companies will be less appealing to many potential hires,” says Rini.
There will be focus and discourse around hybrid work arrangements as candidates seek out remote or flexible work arrangements, while companies attempt to implement a full return to the office.
However, Rini states that candidates will prioritise stability in their job search against uncertain economic conditions, sharing, “They will assess opportunities with fintech and newer startups more rigorously.”
Meanwhile, where job prospects are perceived as stable at banks and insurance firms, such companies will be on the lookout for candidates from large consultancies to support them in their digital transformation initiatives.
In 2024, companies will be after front-office candidates who can help generate revenue. These positions include those in corporate banking, business development, partnerships, sales and client coverage.
Within the governance function, talent in risk, compliance, regulatory and internal audit will also be highly sought after. As companies seek out support for their digital transformation initiatives, they will be looking to bolster their ranks with talent that are experienced in IFRS 17, fraud management, and technology risk management.
Lastly, investment-related positions such as investment bankers, investment analysts, portfolio managers, and investor relations professionals will also be in demand.
Besides the usual concerns around compensation, bonuses and medical benefits, Rini says that candidates now prioritise job stability and alternative work arrangements when assessing new job opportunities. “Shaken by the slew of layoffs that hit the market in 2023, candidates are looking for companies and roles that are more stable,” she notes. “Many also expressed wanting to move because they want hybrid work arrangements.”
To retain talent in the year ahead, Rini advises hiring teams to communicate the long-term growth potential of the business and the career prospects there to prospective employees. She also recommends seeding a sense of ownership by allowing employees to be more deeply involved in projects and initiatives.
Companies may also want to relook how they structure compensation and benefits.
“Besides a good salary package, employee stock ownership programmes (ESOP) are no longer attractive at the moment. What candidates are eyeing at the bonuses they can receive, contingent on their performance,” she explains.
For recruitment, Rini recommends streamlining and quickening the hiring process. “Good candidates will be on demand, so the faster we can secure them, the better it is as it also helps hiring teams avoid a price war against other companies.”
Lastly, companies should also strongly consider hiring agile candidates with a generalist background. Such candidates are highly adaptable, are willing to learn, and have a can-do attitude. This benefits the business as they tend to be willing to go the extra mile when completing their tasks.
Salaries are expected to increase slightly for candidates in fintech and digital banking as companies continue to be mindful of budgets and spending.
Candidates in other regular businesses in the sector can expect salaries to go up by slightly above average rates. “Many businesses struggled during the pandemic and withheld bonuses, but they have bounced back since 2022. As such, businesses will be looking to reward employees for their work in 2023,” explains Rini.
Request access to our 2024 Salary Survey to benchmark salaries and to find out more about key hiring trends in Indonesia.
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Banking & Financial Services, Indonesia
Rini has over seven years of multi-industry recruiting expertise and proven experience in audit assurance at a Big Four firm. Rini currently leads the Banking & Financial Services team.
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