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Banking and Financial Services Talent Gap Malaysia

Sourcing Banking Talent in Malaysia: An Inside Story

Amidst a bleak global economic outlook caused by concerns for an upcoming recession, the Asian banking sector remains resilient carving out a positive niche for itself amidst turbulent international conditions.

Among their peers, Fitch ratings maintained a positive outlook towards Malaysian banks, which are projected to enjoy solid financial performance over the next 12-18 months, thanks to a supportive domestic market offering stable growth prospects amid manageable credit risks.

To learn more about the intricacies of Malaysia's banking and financial services sector, we spoke with Sue Jean Lee, Manager for Banking and Financial Services for Hays Malaysia to learn how this industry has evolved to fit the market and what challenges candidate and business are facing today.

Malaysian banking and financial services has embraced the future of technology

While local economy contributes much to the success of this critical sector, there is also much to be said about the flexibility Malaysian banks have taken in their approach towards updating their processes to be future-ready. Malaysian consumers today now enjoy a variety of digital-ready products and services that make the banking process much easier.

On paper, these innovations are being seen as a step towards bridging the gap between two important segments of the population. First of these are rural communities with limited access to physical banks benefit greatly from the availability of online services, allowing them to perform transactions without the hassle of traveling long distances to visit an outlet.

But technology benefits more than just marginalised groups. These innovations are crucial for appealing to a new generation of users that are embracing the digital world more keenly than ever before. From simple utilities such as being able to transact via mobile devices to integrated payment functions linking vendors to customer with QR codes, Malaysian banks are doing what they can to market themselves to Gen-Z as institutions that cater to their unique needs.

Malaysian banks are adopting artificial intelligence faster than ever

As the world of work continues to evolve at a breakneck pace, flexibility has become a key component for organisations sourcing for the right talent to support their operational needs. Nowhere does this feel more pronounced than in the tightly regulated banking and financial service industry, where necessary change is fought for at every step of the way.

Leading this change is AI and automation technology, which Malaysian banks have been quick to adopt to. Ever since homegrown CIMB introduced the first conversational real-time chatbot for commercial banking, an increasing number of banks have been introducing their customers to automation solutions, giving them quick and convenient access to information and services.

But at the very centre of it all, banks understand the need to maintain a human touch in their strategy. Today, front office positions are in high demand, with many banks looking to secure existing staff by offering large salary increments and associated benefits. This is supported by robust hiring strategies to fill vacancies, as financial institution look towards building a better candidate experience to entice applicants.

Where AI adoption has not yet seen heavy use is in the talent recruitment space. The candidate acquisition process is still very much a traditional one, with a preference towards internal acquisition teams, agencies or referral programs.

Digital Banking is growing in Malaysia

Worldwide, digital banks have been growing in popularity among users for providing a seamless, trouble-free digital on-boarding process. This is especially true in Asia where a fifth of the world's digital banks current predict, offering contemporary, cloud-driven architecture, exceptional user engagement, and a readiness to integrate their financial services into existing platforms to the tune of user engagement.

This trend is set to continue in Malaysia, where 74 percent of Malaysians utilise digital financial services and 79 percent use digital payments. To promote financial inclusivity, Bank Negara Malaysia has awarded five digital banking licenses to applicants, the first of which was approved for operations in September 2023. This expanding blue oceana market is expected to result in an influx of job openings for adventurous candidate's looking to break into the digital banking sector.

What banking and financial services roles are in demand in Malaysia?

The banking and financial services sector in Malaysia remains job rich, especially in wealth and asset management, as well as the commercial banking sector. Recruitment remains strong especially for relationship management and credit analysis roles where banks are still on the lookout for frontline staff.

There are also gaps that have proven particularly difficult to fill in specialties that have grown in importance over the years. ESG and Sustainability roles continue to lack suitable candidates with the prerequisite skill sets across the market, despite organisation seeing more value in fulfilling these functions. Back-office functions are also short on candidates with programming skills, while risk managers continue to be a rarity among talent pools. Technical data modelling skills have also proven particularly difficult to find in qualified candidates.

In an evolving market like banking and financial services, we understand the importance of having quick access to top talent who will make a real difference. We have spent years nurturing an ecosystem of highly engaged and unique candidates and will work with you to grow or scale your business using our unique expertise aligned to sectors and technologies. Be sure to reach out to us if you have a position that needs fulfilling.

What are Malaysian employers doing to find talent in banking and financial service?

The competitive nature of the banking and financial service industry means that candidates are well compensated in comparison to their peers in other industries. While candidates can expect to earn comparatively higher salaries when they start out, this increment begins to taper off as employees approach the five-year make at their place of employment.

Financial institutions are taking advantage of this by offering prospective candidates largest increments by switching over from their competitors. Candidates who make this career shift can generally see a 20-30% bump in salary, compared to 2-5% if they had stayed on with their previous employer.

Understandably, companies are eager not to lose valued employees, and have begun reviewing employee welfare programs to entice them to stay. Many banks today have implemented and maintained work from home policies for staff, allowing them the flexibility of spending up to two days a week working from a location of their choosing.

Should they risk losing valued personnel, banks are also very open to laying down a counteroffer, with the goal of persuading them to stay. This is especially crucial when it comes to positions that are difficult to fill due to a lack of suitable candidates.

As recruitment experts in banking and financial service, we can help candidates navigate their prospects, equipping them with the tools to make the best employment decisions. Reach out to us and being strategising the next phase of your career in banking and financial service.

Where does Gen-Z fit into the Malaysian banking and financial service talent strategy?

The world of banking has grown increasingly intertwined with technology, and Malaysian banks understand this in principle. With a customer-centric focus when adapting to modern technology, financial institutions will now have to direct that same focus towards the search for talent. Understanding the demographics of this talent then, is key to developing a holistic strategy to ensure the talent pool doesn't dry up.

At the very centre of this focus is Gen Z; a digitally savvy generation with formative experiences from the pandemic. This talent class feels at offs with the traditional working structures of a banking culture that has long been exemplified as an office job with long hours ahead of employees looking to climb the corporate ladder. Despite this contrast of value, organisations have much to gain from attracting and retaining Gen Z into the world of banking.

Prioritise employee wellbeing

The trend of "quiet quitting" and more recently, the "lazy girl jobs" gained momentum these past two years, with employees minimising their efforts to cope with extended workdays and rising health concerns. These terms have struck a chord with Gen Z, who are increasingly prioritising their well-being over their careers.

Today many banking and financial service companies have made investments in physical and mental health programmes for employees. Initiatives such as extended bereavement leave, gym memberships and flexible work arrangements are gaining popularity as organisations look towards providing the resources employees need to stay healthy in all aspects.

Encourage diversity, equity, and inclusion (DE&I)

This generation is passionate about creating a more equitable and inclusive world. To meet their expectations, many companies in the banking and financial services sector have taken significant steps to promote diversity and inclusion. This range from diverse hiring practice actively seeking a variety of backgrounds, experiences, and talents to implementing inclusive policies supporting gender and ethnic inclusivity.

The world of work has long realised the benefits of a diverse workforce. Consider review the following tips to see if your hiring practices are detrimental to skilled professionals:

Invest in training

Given the persistent shortages of critical skill sets in the banking and financial services sector, it's prudent to explore alternative avenues for finding individuals who meet these demands. Nurturing the necessary skills in both new and current employees through training, upskilling, and career development initiatives, especially in light of ongoing technological advancements, is a strategic move.

Shifting the focus from job-seeking to skill-mining will also expand the pool of available talent. This is particularly relevant for positions requiring back-office professionals with programming expertise, a skill that might be more prevalent in certain technology-related industries.

As a lifelong partner to business in Malaysia, Hays is well placed to find the right solutions to your staffing needs. From identifying existing talent to training those with potential, we're working for your tomorrow to help your organisation succeed in the short and long term.

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