HKMA Publishes Banking Sector Talent Gap Findings

Source: Regulation Asia Editors, Regulation Asia 2020-06-19

Key skill gaps in the banking workforce were identified in areas relating to technology and data, cybersecurity, core banking knowledge, regulation and compliance, and climate risk management.

The HKMA (Hong Kong Monetary Authority), HKAB (the Hong Kong Association of Banks) and HKIB (Hong Kong Institute of Bankers) have published the findings of a stock-taking exercise to identify potential talent gaps in the banking sector over the next five years.

The new paper – entitled “Capacity Building for Future Banking” – acknowledges an expected strong demand for talent to support the Hong Kong banking sector’s planned expansion in the coming years.

Against this backdrop, the HKMA engaged the banking industry to undertake a study on potential talent gaps and to develop a clear directional road map for banks to address these gaps.

Key skill gaps in the banking workforce were identified in three key areas:

technological and data skills, i.e. in the application of artificial intelligence; data governance, analytics and related technologies; quantitative/algorithmic thinking; and cybersecurity
banking knowledge, i.e. – core banking knowledge; business and product knowledge; regulatory and compliance expertise; specific knowledge in for GBA expansion; cross-border business; and climate risk management
specific soft skills, i.e. creativity; cross-border networking skills; analytical and interpretative skills; adaptability; communication; customer connection skills; and multitasking ability

The paper says sound practices in talent management that could help narrow the skill gaps, including programmes to reskill and redeploy existing banking practitioners in ways that will help them develop knowledge and new expertise.

Concrete efforts should be made to start reskilling and redeploying existing staff, especially those working in jobs that are of reducing need going forward, the paper says. But, banks may also need to attract outside talent to fill their talent gaps.

“Proper investment in human capacity is critical to the future success of the industry,” the paper says. “Accordingly, it is important that your institution should formulate an appropriate strategy and take adequate actions to address its future talent need.”

The HKMA will review strategies and action plans adopted by institutions to ensure their staffing resources are properly prepared to sustain long-term growth and development in the banking sector.

The paper also highlights some of the HKMA’s initiatives to facilitate capacity building in the banking sector, including:

the development of professional training modules under the Enhanced Competence Framework
the establishment of the Hong Kong Academy of Finance to develop financial leadership and promote research collaboration
the various conferences, seminars and workshops held by the HKMA to engage with the banking sector on relevant strategic developments
apprenticeship and internship programmes to enable university students to equip themselves with specific banking knowledge, e.g. the Banking Talent Programme

The full paper is available here.

HKMA Publishes Banking Sector Talent Gap Findings

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