Commentary

The unauthorized ATM withdrawals that occurred in Singapore over the past year have highlighted the issue of payment fraud.

Whether you’re a local plumber or multi-national conglomerate, cash flow is the heart of any businesss. Managed poorly, it will stymie business growth, and in the most extreme case lead to bankruptcy.

With the increasing intensity of regulatory oversight, the importance of a bank’s ability to report to local regulators and respond to ad-hoc requests accurately and promptly has never been greater.

The world of Private Banking in Asia is changing quicker than ever before. The last economic crisis forced the banks as well as the bankers to change their mindset.

There are more redundancies and fewer vacancies in Asian and Pacific financial services than a year ago as many institutions strive to slash costs in an uncertain global economic environment. But this isn’t an excuse for employers to stop focusing on retaining their staff. Whether it’s motivated by saving costs, targeting high performers, pre-empting future attrition, or stopping defection to the corporate sector, retention still matters. Reasons for retention The cost of rehiring is always a driver of retention, and firms are even more loath to replace staff in a cost-conscious climate. Retention strategies are often targeted at high performers whose skills need to be kept in-house, particularly when the firm is battling a downturn. Although there aren’t too many financial services opportunities available in the short term, the desire to move roles is still fairly strong. In Singapore and Hong Kong respectively, 66% and 63% of finance professionals intend to jump ship this year, according a recent survey carried out by my company. Yet they are realistic about their chances, with more than 70% of respondents in both centres expecting it to be hard or very hard to find a new position. The potential danger for employers is that pent-up demand to leave their ranks will grow, resulting in too many staff quitting when markets pick up – just the time when firms want to expand, not lose talent. Going corporate Another retention problem is already underway. HR professionals in Asia have told me that compared with a year ago more people are considering opportunities in other industries. In an era of lower bonuses and leaner teams, some employees are questioning whether working long hours is still worth the effort, especially when many corporate employers seem less vulnerable to retrenchments. People with sector-transferable skills, such as those in accounting, risk and technology, pose the greatest retention danger. Heavy workloads help to explain why having flexible hours is an important non-monetary benefit. Our survey reveals that 84% and 79% of active job seekers in Singapore and Hong Kong respectively consider it to be crucial, yet only about half currently enjoy it. This supports remarks from recruiters that people are leaving financial services partly to gain better work-life balance elsewhere. Flexible working in the finance sector – while historically poor and still inappropriate for some jobs – is growing in importance. Although initiatives are often company wide, some organisations allow managers to authorise reasonable requests from staff without HR approval. Programmes can also be targeted at particular groups, such as women returning from maternity leave. And importantly, employers should provide proper technical support to those who work from home, and establish ground rules to ensure they are not tied to their mobile devices late at night. What staff are seeking Retention does not always come down to bidding wars because employees are now increasingly looking for a mapped-out internal path that will put them in a stronger position in the future. Our survey indicates that a lack of career progression beats compensation as the top motivating issue for those looking for a job. A lack of recognition for accomplishments is the third key factor, and this poses a challenge to managers, especially when many staff feel under pressure following downsizing. In a downbeat market, it’s important to recognise people’s efforts and keep them energised. The hardest candidates to headhunt are those who like their job and have a good relationship with their boss. The way in which firms handle the aftermath of lay-offs is also essential to keeping the remaining workforce loyal in the longer term. Line managers should meet employees and clearly explain the business case behind their colleagues’ redundancies. Having plans to redeploy, or offer career advice to, retrenched staff also helps to improve morale among the survivors. Retention matters right now thanks to factors including the high cost of replacing staff and potential attrition when markets recover. It is up to senior management, line managers and HR to work together to boost retention rates, concentrating on the issues most relevant in the post-GFC financial world – career progression, recognition and flexible working chief among them.  

Most financial services regulation fails because it is backward-looking. In seeking to address the problems of the last crisis, regulators often sow the seeds of the next.

Gold isn't an investment the way most folks see it. A hundred shares of Coca-Cola is an investment. An income-producing rental property is an investment. Gold is "real money" and thus is a crisis hedge.

In these tough times, as the global financial industry is going through turbulent times, the Asian banking and financial services industry, relatively less impacted, is learning from the lessons and preparing for the times to come.

What is Basel II / Basel III / Basel Quattro?

The explosive growth of wealth populations in emerging markets presents both eye-watering opportunities and challenges for wealth management professionals. In Asia, the need to address challenges faced is most critical, as it is predicted to be in the early stages of a 150 year wealth cycle.

In today’s competitive, cost-conscious and profit-driven economy, Asian banks must continually focus on optimising their distribution channels in a way that allows them to move customers into higher-value relationships.

For many Asian companies the creation of the annual plan or budget is a major event that consumes significant time and resource across the organisation, particularly in finance.

Indonesia is again on the front pages of the newspapers, now it is the largest bank acquisition since years. DBS Singapore will take full control of Danamon Bank.

Virtually every industry today is considering migrating to the cloud. More so, considering the potential benefits and its impact on the way technology is delivered to the end user.

Demand remains steady for candidates across Asia’s banking and finance sector despite the current global economic conditions. Here Marc Burrage, Regional Director of Hays in Hong Kong, discusses trends and current opportunities across Asia from the latest Hays Quarterly Report.

Asia’s small and medium sized enterprises (SMEs) are thriving, benefiting from strong economic growth throughout the region. But in an increasingly interconnected world, they are not immune to problems elsewhere, such as the Euro crisis.