Talent shortage poses a potential threat to achieving target revenues at Malaysia's banks.
As more financial products and services were rolled out in the last few years, Malaysia is seeing a huge demand for network systems project specialists; infrastructure applications experts; UI (user interface) specialists and big data analytics professionals, says recruitment consultancy Hays.
«To address talent shortages, hiring managers have therefore been more open to recruiting candidates who do not necessarily have the full set of skills required for the position,» said Hays Malaysia senior manager for banking and financial services Natasha Ishak in a recent post.
Virtual Banks Arriving
Virtual banking is fast becoming a reality for the country as Bank Negara plans to issue licensing guidelines by year end, or as soon as the industry regulations are finalized, according to a recent report in «The Star». In Asia, Hong Kong has already issued 8 virtual banking licenses while Singapore is considering guidelines for the country's virtual banks, as finews.asia reported.
Perhaps, banks are gearing up for competition. Hays is also seeing greater demand for front office roles in the next 12 months, with a particular need for relationship managers and branch managers with wealth experience, as well as private bankers.
Unbundling Of Financial Services Started
In the meantime, adoption rates of e-wallets are fast rising. Although it is still at its infancy stage, there are many initiatives already launched to educate the masses, such as traditional marketing and in-app incentives. WeChat Pay MY, for example, is taking the lead in driving adoption programs alongside governmental support for the country to make headway towards a semi-cashless system.
Currently, cashless payments contribute to about 20 percent of total payments in the country, with only half of that involving e-wallets. To stay ahead of the curve and to compete with firms looking to unbundle financial services, banks may need to reposition and target niche areas, says Hays.
