Hong Kong’s fintech ecosystem needs to nurture young talent who ‘dare to fail’, says wealth platform head

Hong Kong needs to focus on developing the next generation of engineers to make it a strong fintech hub, says Singapore-based digital wealth platform Endowus. “Growth in talent needs to happen from two fronts – development and attraction,” the firm’s Hong Kong head, Steffanie Yuen, said in an interview with the South China Morning Post. The pandemic saw an exodus of talent in Hong Kong, which Yuen said has made it difficult to hire software engineers. The city’s government aims to turn things around with a slew of new initiatives, including a HK$30 billion (US$3.8 billion) scheme to help businesses set up in Hong Kong, and a top talent scheme to help enterprises build a base. Yuen believes Hong Kong is a great place for the firm to expand its reach across Asia, but added that a shift in mindset needs to take place among the next generation. Gulf investments into Hong Kong and GBA set to rise, especially in fintech “The mindset of ‘daring to experiment, fail and try again’ should be cultivated [among the] young,” said Yuen. A study by recruitment firm Hays Hong Kong found seasoned professionals in mid-management roles prefer careers at bigger brands with higher salaries and job stability. Moreover, 90 per cent of respondents in Hong Kong believed that salary or benefit packages were the key reasons to stay in their current job. However, young people are more willing to take risks when looking for jobs, according to Carol Cheung, director of financial services at Robert Walters Hong Kong. Younger employees prefer the flexibility, including the option to work remotely, that is offered by many start-ups today, said Cheung. Endowus was co-founded in 2017 by chief executive officer Gregory Van, who himself admits that bringing new talent on board when the company was starting out was not easy. “It is difficult to get people to join a mission with a company and a brand that people are generally not familiar with. It was difficult in Singapore and it’s equally difficult in Hong Kong,” Van told the Post. Endowus expanded to Hong Kong earlier this year after it received approval from the Securities and Futures Commission to offer wealth management and advisory services in the city. Workers in Singapore tend to be more concerned that a new company may go bust, whereas Hong Kong talent is more focused on whether their employer can match the premium salaries offered by traditional banks and firms, according to Van. “Even companies with renowned employer branding may sometimes face challenges in hiring new talent,” said Rouella Landicho, a director for legal, banking and financial services at Randstad Hong Kong. Landicho said this was especially true as workers were adopting a more cautious attitude toward switching jobs amid a looming recession and lay-offs at high profile companies in the tech sector. Preliminary results from a Greater China Talent Expectations Survey conducted by Randstad showed that 59 per cent of respondents in Hong Kong would still rather work for Western multinationals. However, 30 per cent of respondents did say they would prefer to work for unicorns while 19 per cent indicated an interest in jobs with start-ups. Endowus co-founder Samuel Rhee, a former CEO of Morgan Stanley Asset Management in Asia, said new employees need to share the firm’s vision. “We’re about trying to change the industry,” said Rhee, who is chairman and group chief investment officer of Endowus. “We want the right people to come on to the team, and a big part of that is buying into the mission and vision of the company.” Hong Kong and Singapore battle to lure fintech leaders to competing mega events Endowus has pioneered a fee-only model in Hong Kong. There are no transaction fees and customers receive a rebate on all ongoing commission fees from fund managers, allowing the company to offer low cost investment options with no conflict of interest. With a company wide workforce of 140, Endowus hopes to grow its Hong Kong office. So far, the Endowus formula appears to be working. The company won an award for “Great Place to Work” in Singapore this year, with 98 per cent of employees saying they were satisfied with the company. “Many start-ups have successfully attracted seasoned employees from top companies who are looking to work in a different environment where they can have the autonomy to conceptualise their ideas,” said Landicho.