Hong Kong banks need to adopt this key hiring practice as virtual era dawns
- City’s banks in new arms race to acquire top tech talent
- The Hong Kong Monetary Authority is expected to issue the city’s first virtual bank license during the first quarter
Banks need to get rid of their slow hiring process and team up with tech companies to face the arrival of the first batch of virtual banks this year, according to financial experts at the Asian Financial Forum on Tuesday.
The Hong Kong Monetary Authority is expected to issue the city’s first virtual bank license during the first quarter. As of August 31, the authority had received 29 applications to operate virtual banks – the ability to provide services through mobile and online apps instead of physical branches. About a third of the applications received have been rejected during the first batch of processing.
HKMA deputy chief executive Howard Lee said hiring the right talent mix would be key for traditional banks to develop successful fintech operations.
However, he said banks would need to adapt a speedier recruitment process when searching out tech personnel, instead of the conservative banking culture where vetting for senior banking positions can take six months or longer.
“None of the tech talents would not be willing to wait that long and they will simply accept other job offers,” Lee said at a panel at the forum.
Since September 2017, the HKMA has introduced seven measures – including the licensing of virtual banks – to promote the development of Hong Kong into a smart banking city.