WM Market Reports
Hiring Trends - A Year In The Asian Wealth Jobs Sector

A prominent executive search firm in the Asia-Pacific region reflects on the state of the employment market in the private banking, external asset management and other wealth management sectors.
The Asian private banking sector produced mixed fortunes in the
employment market last year, with many firms starting 2018 with
aggressive hiring strategies before pulling back as market
headwinds forced them to change course, according to executive
search firm Huddleston
Jones.
The front office segment of private banks was a
“candidate-driven” market but this segment has changed, with
active candidates putting client requirement and platform
capability ahead of personal needs or gains, Danny Jones, chief
executive at the firm, said in a note.
“Continued consolidation, and the client ‘cannibalisation’
ongoing throughout the industry has increased pressure on
relationship managers to provide value outside core day-to-day
capabilities. Extensive candidate engagement last year leads us
to believe that a large proportion of front office movement in
2018 was actually instigated by client demand versus internal
push or external pull factors,” Jones said.
The large Swiss banks, such as UBS and Credit Suisse, or regional
players, have not dominated hiring activity: “In fact, we
witnessed a resurgence of major international houses that have
stood dormant in their hiring activities following the 2009
‘Global Financial Crisis’”, he said.
“It is these same players that have stolen the headlines in 2018,
with transformational hires to re-establish themselves as
competitive forces within the Asian private banking sector. This
has positively changed the competitive dynamic on the war for
talent in Asia, with historic hunting grounds transforming into
platforms of choice in the eyes of candidates, ultimately moving
emphasis away from `usual suspects’ in terms of hiring,” Jones
continued.
External asset managers
Jones struck a cautious note about the external asset manager
sector that has seen growth in recent years (see a research
report by this news service on the
sector here.)
“Challenging economic outlook in major global centres and
political instability has created continued market fluctuations,
leading to the dramatic dampening of enthusiasm towards the
external asset management proposition in comparison to former
years,” Jones said.
“The EAM sector spiked in 2015, with a surge of interest from
relationship managers eager to explore the benefits of EAMs, with
an underlying assumption that the model circumvented rising
regulatory pressures surrounding client onboarding and
reporting,” he said.
“Last year, we noted a significant fall in candidate inquiries
relating to EAM models, with the majority of candidates
gravitating towards more traditional private banking platforms.
It is our belief that candidates will remain indifferent towards
EAMs going into 2019. However, the emphasis will likely switch in
the favour of boutique wealth managers that have shown increased
growth, appetite and commitment in Asia throughout 2017 and
2018,” Jones continued.
Market coverage
“Market coverage has continued to be an unfavourable factor
reducing candidate movement, with various leading market sectors
facing country specific slumps due to domestic political policies
influencing their financial sector”.
“Examples such as the Indonesian Tax Amnesty, Malaysia’s 1MBD and
China’s tightened capital controls impeded revenue consistencies
across three of the major wealth management markets in Asia last
year. In turn, this has affected movement in what are typically
deemed key growth areas for private banks in the region. In
attempts to counter-balance market shortcomings, a number of
private banks moved away from traditional hiring processes in
2018 by relaxing their expectations to achieve their targeted
business growth,” Jones said.
Jones added that there has been a shift towards ‘first year
business plans’ as opposed to the traditional three-year
commitments expected by hiring managers, with the goal of
achieving an 18-month break-even milestone with new recruits. “We
sense this was positively received by bankers,” he said.
“The hurdles faced in core Asian markets have subsequently opened
the doors to secondary and emerging markets in Asia - including
the Philippines, Thailand, Australia and South Asian community -
which are gradually moving upwards as primary market
focuses”.
“For a second year running, hiring continued into the months of
November, December and January which are typically considered as
cool-down months in the wake of budgets, bonuses and seasonal
festivities. The pace of hiring has continued unabated with
employment offers still being produced and approved at a global
level, and demand from banks to meet front office candidates kept
precedence”.
“Despite strong human capital demand from banks, we still predict
that the hiring will remain stagnant throughout the first and
second quarter of the year, with interest in external
opportunities spiking later in the calendar year when
geo-economic tensions resolve and domestic political agendas
(1MBD, Tax Amnesty) conclude – encouraging active mind-sets
versus passive. The major pull factors that enticed passive
candidates to move in 2018 revolved around capability, with two
fundamental areas including ‘capital markets synergy’ and the
ability to ‘collateralise domestic shares’. In addition to this,
stable management, positive brand image and a pro-business
approach to account opening remained high on the agenda of
candidates,” he said.
Jones concluded by noting that internal consolidation, including
the streamlining of costs in supporting functions, was at the
forefront of CEOs’ minds last year in major Tier 1 international
private banks.
Smaller tier two banks and mid-sized Tier 1 firms, however, used
2018 as a year to develop and enhance product capability and
platform processes, embracing technological trading advancements
to digitalise their capability in efforts to remain relevant and
compete for the next generation of wealth in Asia.
“Private banks went beyond traditional talent pools in 2018 to
upscale internal expertise across their product coverage,
leveraging from an influx of talent made available through
downsizing of investment banks and capital market divisions in
Asia. We anticipate a rise in competition for capital market
specialists transitioning from product focused roles within the
corporate and investment bank into the private bank, fuelled by
ongoing displacement. Whilst it is likely CIB candidates will
receive salary reductions in comparison to their existing
compensation, salary benchmarks within the private banking sector
will naturally increase to accommodate talent acquisition at this
level,” Jones said.