Globalization and Cross-Cultural Understanding in Financial Services Hiring

In conversation with Prisila,Correspondent,Asia Business Outlook Magazine. Matthew and Yin shared their views about the rise of sustainable finance and ESG and how the emerging technologies are transforming the financial services sector Matthew Tjoa specialize in connecting professionals with opportunities in the macroeconomic sector, working with both buy-side and sell-side firms. His focus encompasses roles such as sales, trading, structuring, portfolio management, and research. With a passion for matching the right talent to the right positions, he thrives in the dynamic world of macro finance.

The Transformative Impact of Technology on the Financial Services Landscape in the Digital Age

In the dynamic landscape of today's business world, it's imperative for C-level leaders to recognize that digital transformation is no longer a choice but a necessity. Failing to embark on this journey puts companies at risk of becoming outdated and overshadowed by their competitors. Traditional roles within organizations are undergoing a tech-infused evolution. Take, for instance, professionals in risk and finance who are now expected to possess coding skills like Python, reflecting the pervasive tech influence in financial services.

From an investment standpoint, private equity and venture capital firms are actively seeking visionary founders with groundbreaking technologies. They aim to be at the forefront of the tech revolution. As an example, there is a new VC leveraging AI with up to 80% accuracy to identify potential investment opportunities, thereby redefining traditional deal-sourcing methods.

Yin Yi Lim – AVP, Risk Management, Singapore

The motivations behind financial companies embracing digital transformation are multifaceted. They seek to enhance customer experiences, streamline operations, reduce costs, foster cultures of creativity and innovation, boost sales, and refine analytical capabilities.

Key trends in this transformative journey include harnessing the power of AI/ML, exploring blockchain applications, intensifying cybersecurity and data privacy measures, adopting cloud and mobile solutions, and integrating robotic process automation (RPA). These trends are not mere buzzwords but pivotal strategies for navigating the digital era successfully.

Anticipating the Impact of AI and Machine Learning on Future Hiring Needs in Traditional Finance Roles

AI holds promise for boosting efficiency, cutting expenses, and refining decision-making within the financial sector. It's worth noting that while it has indeed resulted in the replacement of some low-skilled positions, its impact has also been felt in highly specialized fields like investment banking, wealth management, and risk management.

Nevertheless, it's crucial to recognize that this technological shift is also likely to generate new career avenues. For instance, roles such as Data Scientists and AI/ML Engineers are set to become increasingly vital as they are tasked with the responsibility of designing and upkeeping AI-driven systems. So, there's a transformation happening in the finance industry, and staying attuned to emerging roles can be valuable for those looking to navigate this evolving landscape.

The financial industry is undergoing a transformation with the rise of AI. While AI is automating routine tasks and affecting some traditional roles, it can't replace the experience and intuition of human professionals. New opportunities in data science, AI engineering, and roles in regulatory compliance and cybersecurity are emerging. Adaptability to new technologies and the cultivation of soft skills will be crucial in this evolving landscape. The future of finance jobs will likely blend human expertise with the capabilities of AI-powered systems.

"AI and ML-driven automation is now a crucial part of various industries, particularly in banking, where AI chatbots are anticipated to save a substantial 826 million work hours."

Considering the rise of sustainable finance and ESG (Environmental, Social, and Governance) considerations, how are job roles and skill requirements changing in the Financial Services sector?

Sustainable Finance and ESG is one of Asia’s most in-demand field, largely fuelled by global regulatory pressures to decarbonise and the nature of its ever-changing landscape. In terms of job roles, we have seen an uptick of niche hires amongst Global Banks, such as Climate Risk Modelling and ESG Taxonomy. Asset Managers are also including ESG products in its investment portfolios, and we have seen more multi-asset funds that integrate sustainability in every stage of the investment process. As the financial services sector evolves to becoming more sustainable, skill requirements naturally shift to accommodate the demand.

Employers are now prioritising professionals with ESG product knowledge such as climate bonds, green equity funds and more. Experience dealing with ESG data is also a plus, and knowledge of the various sustainability reporting standards (e.g. GRI Reporting, TCFD framework) is now more pertinent than ever. Candidates are also aware of these changing requirements, and many are taking up further education or courses to upskill themselves – an example would be the Certificate in ESG Investing from CFA Institute. ESG and Sustainable Finance will continue being a fundamental pillar in the Banking and Finance industry, and we continue to expect a strong inclination towards a career in ESG as it offers future-proofing amidst an uncertain market.

Influences of International Experience and Cross-Cultural Understanding on Hiring Decisions in Global Financial Markets

In today's financial institutions, teams have become increasingly global, comprising both global and regional units. Clients seek candidates with a global perspective, valuing diversity, the ability to communicate effectively with developers in emerging markets, and a US-based presence. Proficiency in understanding how global markets interconnect is essential. Moreover, the demand for cross-cultural understanding is paramount for managers overseeing remote teams. When it comes to senior hires, there's a growing preference for candidates with experience in multiple geographic locations, particularly for regional roles in Asia. It's now common for different functions to be distributed across various countries, establishing centres of excellence in diverse locations.

Revolutionary emerging technologies are transforming the financial services sector, leading to operational changes and evolving hiring prerequisites.

AI and ML-driven automation is now a crucial part of various industries, particularly in banking, where AI chatbots are anticipated to save a substantial 826 million work hours. These advancements not only boost productivity but also enhance operational efficiency by swiftly processing financial data. Additionally, hyper-automation, exemplified by RPA, is gaining momentum in the financial sector, expediting transactions, reducing costs, and minimizing human errors. Another significant trend is the proliferation of "Buy Now, Pay Later" (BNPL) services, which now extend interest-free installment payment options to a wider range of products and industries, reshaping consumer spending habits.