Posted by Robert Half on 30 November 2016
The banking industry in Asia continues to face several challenges, but there are a few drivers that will bolster Asian banks in the near future.
Competition in the Asian banking industry remains intense. Even with an already crowded market, the region continues to attract new entrants in retail and investment banking, credit unions, advisory firms, and insurance – all seeking a part in the rise of Asia.
Understanding what's trending in the market today could save you in the future. Keep an eye on banking industry trends in Asia with some observations and advice from Robert Half.
Demand for strong skills
While operations roles within large banks continue to be outsourced to low cost countires, the banking sector is driving demand for candidates with strong compliance skills who can keep up with regulatory requirements, such as Common Reporting Standard (CRS) and Net Stable Funding Ratio (NSFR). Opportunities are also available for applicants who can demonstrate capability with investment, relationship management or business development functions.
Overcoming consumer skepticism in Asia
For global and local players, capturing and cultivating a significant share of the banking market in Asia will be challenging. While Asian banks will continue to earn remarkable revenue from large corporate clients, industry players may face more difficulty in dominating the retail banking industry due to the diverse range of customer types in Asia.
Moreover, the global economic crisis has eroded consumer trust in banking as a secure repository for personal savings. Increasingly, Asian retail customers are less willing to deposit money with financial institutions. This trend is especially noticeable in some Asian countries, like Japan.
Crossing industry hurdles
While the banking industry in Asia continues to be dominated by a select few, market entrants are likely to set their eyes on certain countries like China, South Korea and India.
However, entering these Asian markets will be demanding. Challenges include strict regulatory requirements, instability in some economies, the potential for fraud and corruption, and difficulties in building brand and distribution networks.
Coming to terms with changing trends
In keeping with global trends, the Asian banking industry continues to see constant change for finance professionals. The banking sector in this region is especially dynamic because of the constant stream of emerging players, new banking regulations, and the evolving trends in the investment banking industry.
Broader demographic shifts will also prove to be a powerful driver of change. Large-scale urbanisation, a burgeoning middle class, and the increasing proliferation of mobile technology will bring banking services to the fingertips of millions of Asians.
Asian banks are well positioned to tap on the opportunities that these changes present. They have the home-ground advantage and can build on their local knowledge, existing customer base, and brand awareness.
However, Asian players will face stiff competition for top talent from global banks seeking a share of the pie in the Asian banking industry.
People are at the core of Asian banking success
The advantage lies in its people – and this continues to be one of the greatest resources of the Asian banking industry with the Robert Half Salary Guide outlining this fact from its recent survey with top finance decision makers in the region.
Singapore’s expansion in its role as a hub for global services will see an intensifying competition for quality financial services professionals. Banks seeking to generate higher revenues compete for experienced and qualified professionals in the private banking, corporate banking and asset management sectors.
Leaders in the financial services sector in Singapore are expecting to expand their team of financial services professionals. Competition for talent remains intense, with the greatest demand in the insurance, private equity and hedge fund sectors for accounting and regulatory reporting professionals.
Japan’s banking and financial sector is actively looking to recruit professionals that are multilingual with strong communication skills to lead their regional and international businesses.
Willingness to adapt to banking industry trends is critical
Given the challenges in the region, players in the Asian banking industry should be ready to adapt by embracing new technologies, new market conditions, and even new team members with diverse soft skills.
Asian banks must continue to update their business models in adapting to new regulations and reforms, and encourage innovation towards technologies to deliver maximum protection, value and satisfaction to their Asian customers.