Fintech, money, finance by Tech in Asia is licensed under CC BY 2.0
A combination of fresh salary budget data for the coming year and industry sector feedback points to a shortage of tech talent in the financial sector, which is helping salary budgets for talent in digital roles hold steady amid broader weakness across other industries, particularly the banking sector, according to Willis Towers Watson.
Business in all its forms is becoming more data- and technology-driven, and banking is no exception—increasingly it is a fusion of finance and technology. In the competition for talent, it is technology rather than finance that increasingly holds sway. That is where the shortage lies—the pressure point that is holding tech salaries steady while others slide.
The 2016 Asia Pacific Salary Budget Planning Report showed that banking salary budget increases for 2017 are set to be well below those in the tech sector, and also below those of the financial services sector as a whole. Salaries in APAC’s banking sector are set to grow by 4.8% in 2017, the second slowest rate of salary growth among industry sectors in the survey. 11 of the markets in the region have banking pay increases ranked among the bottom three in cross-industry comparison.
Hong Kong, Singapore Tech Salary Rises to Outstrip Banking Ones
Banking salaries in the financial hubs of China, Hong Kong and Singapore are projected to grow by 6.3%, 3.6% and 3.0% respectively in 2017, well below the expected high-tech salary growth rates of 7.5% for China and 4% for both Hong Kong and Singapore. Sambhav Rakyan, Data Services Practice Leader, APAC, Willis Towers Watson commented, “Amid a general slowdown in the banking sector and more broadly across the financial services sector, salaries for digital roles within the financial sector are holding steady.”
Unlike pre-financial crisis times, banking no longer stands alone as the industry of choice amongst top-tier university graduates, according to Greg Kuczaj, Head of Global Financial Services, APAC Willis Towers Watson noted, "There is continued attraction and retention pressure from non-financial services firms, such as those in high tech or fintech, as the pay premium in financial services has decreased to where it is no longer a major attraction." Even at mid- and senior-level positions, technology firms are increasingly attracting key talent away from the financial services industry due to less regulation and scrutiny in the high tech industry, more innovative and entrepreneurial work environments, and highly competitive total rewards packages.
Demand for Tech and Digital Talent Evident Across Industries
Demand for tech and digital talent is evident elsewhere in the region across many industries. As banks move online and adopt mobile solutions, insurance companies are also adopting wearable devices and data analytics technology to tailor policies, pushing Insurtech salaries higher. Other areas competing for digital talent include Fintech, online-to-offline (O2O) and e-commerce. Digital transformation means there is a need to review and redefine the talent strategy to identify key skills and differentiate compensation for talent in key roles.
Kuczaj concluded, "In Silicon Valley, for example, top talent is often rewarded with equity in addition to a competitive base salary and annual bonus. It's very compelling. To truly compete, financial services firms will need to think beyond merely using pay to attract and retain talent. Career opportunities, organisational reputation, security and manager/leadership effectiveness are all critical drivers of attraction and retention."
