B&Fs Q2

Banking & Financial Services Market Insights Q2 2017

Published on 5th April 2017

The start of 2017 has been no different to previous years, where hiring mandates that have been open since Q4 2016 were coming to a conclusion.  There was also an increase in overall month-on-month hiring activity in January 2017 compared to 2016, with greater employee turnover resulting in a larger number of replacement hires. These trends have resulted in a greater number of successful hires in Q1 2017.

This quarter, we have seen a growing pool of talent seeking new opportunities. This has been mainly driven by banks announcing bonus figures as well as annual salary increments. In a number of cases, these bonus payouts have been lower than previous years, which has led to Banking & Financial Services professionals being more open to new opportunities in 2017.  Some banks have also clarified their plans to outsource back office functions, leading to an increase in the job seeker pool. Throughout Q1 2017, financial institutions have been carefully budgeting headcounts for the year, and we saw hiring processes taking longer than usual.

The first quarter of 2017 saw specialist roles in higher demand

In the Finance sector, demand for Private Equity profiles still prevailed, particularly around Funds, Investments and Corporate Accounting. Although these roles do not necessarily show up in volume, they are of a very specific nature, and hence financial institutions tend to use recruitment consultancies to scout for such profiles. There has also been a demand for Financial Reporting professionals at mid to senior levels, though again, these roles do not exist in volume.

Private Banking has seen plenty of activity, especially around Client Servicing and Documentation roles. There was also a demand for Operations Projects profiles with Transfer Agency and Retail Banking industry experience. For these project professionals, companies preferred those with both strategic planning and implementation capabilities rather than those with just an oversight role. Some professionals in the Operations space from the sell-side have also expressed their interest in moving into buy-side firms.

In the Audit, Risk and Compliance space, we have seen a number of Business / Operational Risk Management roles being created or replaced in first line functions under business and support units, at mid to mid-senior levels. Whilst Internal Audit professionals continue to be in active demand, open roles are replacements rather than new headcounts. Compliance hiring also saw a slowdown compared to last year with the exception of AML / KYC-specific roles.

Digital and Product Marketing professionals have been key hires for bigger financial institutions, specifically within Retail Banking, Insurance and Asset Management firms with a Retail customer segment. Though there has been a lot of staff turnover in this space, this is mainly due to high turnover at junior to mid-level positions.

Bonuses were conservative

For Banking, usual bonus figures were between 1-2 months with some firms giving as little as half a month. For Asset Management, including private equities and hedge funds, bonuses were typically between 3-6 months, though very much dependent on company and individual performances. Internal increments have also been minimal between 1.5%-5% on average.

We saw professionals wanting to change roles due to lack of progression, incompatibility with company culture, long working hours, post-restructuring redundancies, lack of salary increments, and low bonus payouts.

Looking ahead into Q2 2017

We expect to see more active job seekers in the market as bonuses get paid and professionals are affected by redundancies as a result of offshoring activities.

Talent demand for Private Banking support will continue as some firms plan further growth in this business segment. We expect to see increased hiring activity here as potential hires are approved, replacement roles come up and changing regulations continue to demand project support. Digital-related roles will likely continue to be in demand while Audit, Risk and Compliance functions will continue to experience staff turnover.

As a general trend, we expect recruitment processes to be longer with tougher requirements. We also foresee that hiring activities will focus on mid to mid-senior level positions in Banking & Financial Services.

Banking & Financial Services
Salary Report for Q2 2017*

Investment Banking

 
Job title Annual salary range (HK$)
Internal Audit
Managing Director 2.2M+
Director 1.7M2.1M
Vice President  1M–1.6M
Assistant Vice President 600K900K
Associate 360K–600K
Analyst  300K420K

CFO
Regional Chief Financial Officer 2M+
Country Chief Financial Officer  1.6M+

Compliance
Managing Director 2.2M+
Director 1.8M2.1M
Vice President  1.1M–1.7M
Assistant Vice President  720K1M
Associate 360K–660K
Analyst  300K420K

Management Reporting / Financial Planning & Analysis
Managing Director 2M+
Director 1.4M–1.8M
Vice President  840K1.4M
Assistant Vice President  600K–780K
Associate 300K540K
Analyst  220K–360K

Product Control
Managing Director 2M+
Director 1.5M1.8M
Vice President  900K–1.5M
Assistant Vice President  600K900K
Associate  420K–540K
Analyst  300K420K

Regulatory Reporting / Financial Accounting
Managing Director 2M+
Director 1.4M–1.8M
Vice President 840K1.4M
Assistant Vice President 540K–780K
Associate 240K480K
Analyst  220K–360K

Tax
Managing Director 2M+
Director 1.5M1.9M+
Vice President 960K–1.5M
Assistant Vice President 540K900K
Associate 400K–540K
Analyst  220K360K

Operations (Settlements / Corporate Actions / Treasury) 
Managing Director 1.8M+
Director 1.2M–1.8M
Vice President  660K1.2M
Assistant Vice President  480K–720K
Associate  360K500K
Analyst  240K–390K

Operations (Client On-Boarding / KYC Operations) 
Managing Director 1.8M+
Director 1.4M1.8M
Vice President  780K–1.3M
Assistant Vice President  500K800K
Associate  400K–520K
Analyst  260K420K

Middle Office (Trade Support / Sales Support / Client Services)
Managing Director 1.8M+
Director 1.4M–1.8M
Vice President  840K1.4M
Assistant Vice President  540K–900K
Associate  420K540K
Analyst  260K–420K

Project Management
Managing Director 2M+
Director 1.4M1.8M
Vice President  960K–1.5M
Assistant Vice President  720K960K
Associate  420K–650K
Analyst  250K450K

Credit Risk
Managing Director 1.8M+
Director 1.3M–1.7M
Vice President  800K1.4M
Assistant Vice President  500K–800K
Associate  360K500K
Analyst  240K–360K

Market Risk
Managing Director 2M+
Director 1.5M1.8M
Vice President  960K–1.5M
Assistant Vice President  600K900K
Associate  480K–600K
Analyst  300K500K

Operational Risk / Internal Control
Managing Director 2M+
Director 1.4M–1.8M
Vice President  900K1.5M
Assistant Vice President 600K–900K
Associate 360K600K
Analyst  240K–420K
   

Private Banking, Asset / Fund Management & other Financial Services

 
Job title Annual salary range (HK$)
Operations
Director 1.1M+
Senior Manager 720K–1M
Manager 540K720K
Assistant Manager 360K–540K
Officer / Senior Officer 144K360K

Regulatory Reporting / Financial Accounting
Director 1.2M+
Senior Manager 720K–1.1M
Manager 540K720K
Assistant Manager 360K–540K
Officer / Senior Officer  180K360K

Management Reporting / Financial Planning & Analysis
Director 1.2M+
Senior Manager 720K–1M
Manager 540K720K
Assistant Manager 360K–540K
Officer / Senior Officer  180K360K

Internal Audit / Risk
Director 1.3M+
Senior Manager 780K–1.2M
Manager 540K780K
Assistant Manager 360K–540K
Officer / Senior Officer 240K380K

Compliance
Director 1.3M+
Senior Manager 780K–1.2M
Manager 540K780K
Assistant Manager 360K–540K
Officer / Senior Officer  240K380K
   

Insurance

 
Job title Annual salary range (HK$)
Operations
Director 1M+
Senior Manager 660K1M
Manager 480K–660K
Assistant Manager 300K450K
Officer / Senior Officer 120K–330K

Regulatory Reporting / Financial Accounting
Director 1.2M+
Senior Manager 660K1.1M
Manager 480K–660K
Assistant Manager 350K460K
Officer / Senior Officer  150K–350K

Management Reporting / Financial Planning & Analysis
Director 1.2M+
Senior Manager 720K1.1M
Manager 540K–720K
Assistant Manager 300K480K
Officer / Senior Officer 150K–350K

Tax
Director 1.3M+
Senior Manager 720K1.2M
Manager 540K–720K
Assistant Manager 360K480K
Officer / Senior Officer 200K–360K

Internal Audit / Risk
Director 1.3M+
Senior Manager 780K1.2M
Manager 480K–780K
Assistant Manager 360K540K
Officer / Senior Officer 240K–360K

Compliance
Director 1.3M+
Senior Manager 780K1.2M
Manager 480K–780K
Assistant Manager 360K540K
Officer / Senior Officer 240K–360K

 

*Notes about salary table:

  1. Titles and levels vary from organisation to organisation.
  2. The salary ranges given are only approximate guides. For tailored salary advice, please contact us directly.
  3. 12-month base salaries are assumed.
  4. All other benefits and bonuses are in addition to these figures.
  5. Bonus ranges can vary significantly from company to company and will be influenced by market conditions, business and individual performances. Bonus ranges from 1 month at the low end to 100%+ at the upper.
  6. Holiday entitlements range from 1225 days with senior executives not usually receiving less than 18 days. Less than 15 is very rare and 20 days is becoming the norm.
  7. Healthcare policies are standard.
  8. Pension plans vary with some companies offering greater than the standard contribution. Top up schemes can increase employer contribution levels as much as 1520% of the base salary for senior executives.