Rapid changes taking place in finance sector: Tharman
By Mok Fei Fei, The Straits Times, 11 Jun 2014
By Mok Fei Fei, The Straits Times, 11 Jun 2014
THE global finance industry is evolving rapidly as fast-changing technology hits customer habits and banking staff levels.
That means the Republic must stay nimble and develop capabilities to ensure the sector continues to provide rewarding careers for Singaporeans, said Deputy Prime Minister Tharman Shanmugaratnam.
Speaking at the Institute of Banking and Finance's (IBF) 40th anniversary dinner last night, Mr Tharman, who is also Finance Minister, said the sector has been buffeted by speedy technological change. This has caused the automation and therefore the redundancies of many jobs, he said at the event held at the Ritz-Carlton hotel.
For example, analysts believe a large proportion of job cuts in the United States' financial sector reflects the ongoing shift from branch to mobile banking. This reduces the need for staff at branches.
Mr Tharman also noted that 74 per cent of global foreign exchange trading is executed electronically, up from single-digit proportions in the early 2000s.
Weak economic growth and higher capital requirements in the wake of the global financial crisis are also forcing financial institutions to review their business models and to restructure, leading to overall shrinkage in the world's financial sector.
"Redundancies have been outpacing new hires by roughly two-to-one. Financial institutions have been particularly pressured to consolidate activities in trading and securitisation, which have higher capital charges," he said.
The good news is that Asian finance is still enlarging its pie and market share, thanks to rising middle-class affluence and wealth creation in the region. "This is a solid story for another two decades at least, with increasing trade flows, rapid urbanisation and infrastructure development," he said.
However, growth of the sector will demand deeper skills, rather than a large expansion of jobs.
Mr Tharman urged his audience: "We must ensure we are well prepared with the skills, depth of expertise and innovative capabilities to stay relevant and competitive." He added that Singapore must proactively develop its Singaporean core while remaining open to foreign professionals with needed specialised experience and skill-sets.
He highlighted the need to develop capabilities in five areas including deep functional expertise which means deepening expertise across all areas including banking, capital markets and insurance.A second area is achieving cross-functional capability in addition to a core competence in a particular business area. Thirdly, Mr Tharman referred to regional knowledge and experience as being essential as cross-border transactions are now the norm.
He also cited technological skills and adaptability as well as leadership as key areas. "We want to develop Singaporeans for positions of leadership in tomorrow's financial world. It requires both depth and breadth, and will increasingly require both local and global experience and know-how," he said.
To equip local practitioners, Mr Tharman announced that the MAS will be launching a new Asian Financial Leaders Programme later this year for Singaporeans who aspire to take on regional or global leadership positions.
The programme will allow participants to learn from regional policymakers, and interact with fellow financial sector leaders from other nations.
United Overseas Bank's chief executive Wee Ee Cheong, who is also the vice-chairman of the IBF Council, said: "We have a responsibility to ensure that our customers are served by the very best in the industry - people who have the required skill-sets as well as the correct mindsets to help them fulfil their dreams."
Foreign banks stepping up efforts to groom local staff
By Mok Fei Fei, The Straits Times, 11 Jun 2014
By Mok Fei Fei, The Straits Times, 11 Jun 2014
FOREIGN banks here say they are committed to developing a Singaporean core, stepping up efforts to groom and keep local talent.
Their comments came as Deputy Prime Minister and chairman of the Monetary Authority of Singapore Tharman Shanmugaratnam said at a banking industry event last night that Singaporeans have to develop skills to prepare for the financial world of tomorrow.
Standard Chartered Bank and UBS said Singaporean staff are core to their operations and they regularly engage highly rated and highly valued local employees.
They do it to find out how employees' career aspirations can be met and to keep them in the company as well as the industry.
At UBS, of the over 2,000 employees in its Singapore office, more than 75 per cent are Singaporeans or permanent residents.
The bank said it has many Singaporean bankers who hold senior regional appointments. Among them are Mr Edmund Koh, the Singapore country head and chief executive of UBS Wealth Management's South-east Asia and Asia Pacific hub; Mr Gan Seow Ann, vice-chairman of the hub; and Ms Yeoh Choo Guan, head of Asean client trading and execution as well as head of Singapore equities.
Mr Koh said: "It is important to nurture more Singaporean bankers for the finance industry here and the region, particularly as Singapore gains greater importance as a global financial centre.
"While UBS' human resource policies continue to be based on meritocracy and the best person for the role, we are committed to recruiting, developing and retaining Singapore talent."
Meanwhile, StanChart engages its staff regularly through feedback sessions and its internal surveys show there is strong demand for tailor-made training and mentorship programmes.
"I joined the bank in 1995 and spent the past 19 years learning from great mentors at different stages of my career," said Mr Gary Tan, its head of financial markets here. "Now I am able to contribute and make a difference by sharing what I have learnt and helping colleagues in the way my mentors helped me in the past."
Singaporeans and PRs make up some 82 per cent of the 10,000- strong staff at Citibank.
Its Singapore country officer Michael Zink said: "Just as we are fully supportive of developing local talent, it is equally important to have some foreign talent with global perspectives, expertise and skills to complement the overall development of Singapore as an international financial hub."
Some Singaporeans believe there is still a bias against locals at some foreign banks. Ms D. Tan, a public relations executive who declined to give her full name, said her husband was passed over for promotion following the appointment of a foreigner as the boss.
Robert Half Singapore managing director Stella Tang noted: "Most of the foreigners employed by banks and financial institutions here are in mid- or top-level roles, where their skills are relatively niche and difficult to find in Singapore."