Banks are prioritising tech talent to drive innovation
THE GLOBAL financial services market has seen continued instability, particularly across the Eurozone, creating an extremely challenging operating environment. This has had an understandable knock-on effect on the hiring market. IT hiring on the whole, however, has held up, largely because of new emerging technologies within banks.
The current omnipresence of technology in finance, from its origins as a niche, is quite extraordinary. Cloud computing, big data and payment transactions are all trends that are making technical hires in the banking industry essential. Traders and analysts in banks like Credit Suisse, JP Morgan and Deutsche Bank now rely on gadgets for an ever-increasing array of tasks. They want immediate access to data across all devices, from PC to tablet to phone.
As a result, data mining, applications development, and mobile applications development are key skills currently in demand. At Morgan McKinley, we have seen a 137 per cent increase in permanent IT vacancies in banks in the year from the first quarter of 2011.
TRENDS ACROSS THE MARKET
Many firms are making a direct play for the sharpest minds at graduate level, and competition for talent remains fierce at this entry point to the industry. Entry-level candidates with a background in programming skills are in huge demand. But banks face stiff competition from cool-tech entrepreneurial environments, where stock options can be very attractive to those with the right skills.
A trend towards hiring in business intelligence has also continued, as company leaders strive to better collate, analyse, understand and present data affecting the strategic outlook and, in many cases, survival of their businesses.
The first step for major financial institutions in managing financial risk is to bring transparency and clarity to their exposure. Some of the biggest and most complex organisations are turning to companies like Metapraxis, the business analysis firm, to provide rapid insight into exposure across products, geographies and business lines.
NEW ROUTES TO ENTER THE MARKET
There is a surging market in the hiring of financial services technical business analysts and project managers, where eligibility for security clearance is an extra string to any applicant’s bow.
As another entry route, the large consultancies – Capgemini, Logica, KPMG and Accenture – are winning huge operational change, risk and infrastructure projects within banks. They benefit from the ability to hire the same technical skill set in large numbers, due to their ability to service numerous client portfolios.
The confirmation of the Single Euro Payments Area (SEPA) end-date of February 2014 also represents a significant challenge to banks. As a result, they will demand new processes and the right technology to support the new systems they will have to put in place.
CHANGES IN THE WAY BANKS ARE HIRING
There has been a shift from banks employing contract staff, towards permanent employees. Once the spotlight was cast on the sorts of rates that were being paid to IT contractors, particularly within the front office, this kind of hiring fell out of favour. However, IT contractors remain employed in urgent projects, requiring niche technologies. Banks are also looking to improve equality and diversity within technology teams. Since last year there has been a greater number of female senior IT appointments, right up to C-level.
Data produced by the Council of Economic Advisors (CES) shows that IT is one of the only industries to have exceeded its 2007 employment level. Considering the impact of recent economic troubles on other areas within financial services, this growth demonstrates the strong continued demand for technology professionals.
Lloyd Wahed is a manager at Morgan McKinley Technology.