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HOW ARE BANKING & FINANCIAL SERVICES HIRING FOR COMPLIANCE ROLES IN HONG KONG? 

Remy Tang
Published Date1 Year Ago

Compliance isn’t an expense. It’s a cost-saving measure. 

This common financial phrase rings even more true today, with growing foreign investment into Asia as businesses look benefit from the region’s growth potential. This comes amidst a growing backdrop of increasingly complex financial crime, where groups seek to profit from a rising digital economy. 

In response, government regulators in many countries are stepping up demands for compliance standards for banks and financial institutions to maintain trust and stability in capital markets and the banking system. And while managing compliance requires resources, it is far less costly than dealing with the aftermath of a breach and the loss of reputation and trust in services. 

We previously outlined trends in Banking & Financial Services on a broader scale in our 2024 Hays Asia Salary Guide. But to get a deeper look into compliance trends in Hong Kong, we spoke to Isis Yu, Senior Business Manager at Hays Hong Kong SAR for further insights. 

 

CONTENTS 

  • FINANCIAL CRIME COMPLIANCE IS BEING STREAMLINED 

  • AUTOMATION PLAYS A ROLE TOO 

  • THIRD PARTY RISK MANAGEMENT – A HIGHLY SPECIALISED FUNCTION 

  • WHAT IS COMPLIANCE TALENT TODAY LOOKING FOR? 

  • HOW CAN COMPANIES ATTRACT AND RETAIN COMPLIANCE TALENT TODAY? 

  • THE MOST IN-DEMAND ROLES FOR COMPLIANCE IN BANKING & FINANCIAL SERVICES 

 

FINANCIAL CRIME COMPLIANCE IS BEING STREAMLINED 

Banks and financial institutions today face a multitude of risks. Money laundering, terrorist financing, cybercrime and fraud are some of the most common types of crimes being carried out by individuals or groups today. 

This has not gone unnoticed by authorities, who have implemented increasingly stringent compliance requirements for related companies. Organisations looking to meet these compliance obligations find themselves increasingly reliant on compliance departments capable of meeting and reporting on key regulatory objectives. 

Financial institutions in Hong Kong are adjusting to these needs - banks were previously eager to hire for gaps in AML to avoid penalties, resulting in a brief period of saturation for roles. Today’s market is seeing a streamlining of roles, with transaction monitoring teams being increasingly offshored to lower cost markets such as mainland China, leaving local organisations to focus on hiring for AML advisory and sanctions. 

 
 

AUTOMATION PLAYS A ROLE TOO 

Automation is transforming the way we work across industries by enhancing efficiency, accuracy, and productivity. Financial compliance is no exception to this trend, enabling continuous monitoring, real-time transaction analysis, and swift identification of suspicious activities. 

This is true in Hong Kong, where companies with the resources to implement automation have found success streamlining first line and second line screening procedures for AML. This is more common among larger banks who generally automate transaction screening processes to minimise labour costs. 

Even so, there are still critical parts of compliance that require a human touch. Banks and financial institutions still require talent capable of adapting to changing local and international regulations, and to apply them towards developing the right policies for the organisation. Candidates in Hong Kong will want to develop themselves as all-rounders, emphasising analysis and advisory skills to stand out in future. 

 

THIRD PARTY RISK MANAGEMENT – A HIGHLY SPECIALISED FUNCTION 

Third party risk management (TPRM) is particularly crucial for financial institutions that are increasingly reliant on external parties for solutions in tech, payments and data management. This reliance reduces direct operational control over activities, introducing new risks into the consumer equation. 

At the same time, regulators are increasing the pressure on financial institutions to manage their third-party risk. This comes in no small part to organisations facing disruptions, monetary loss and reputational damage’ due to third-party incidents which have grown within the last three years across to a report from KPMG. 

Organisations remain responsible for minimising this risk and ensuring the security and privacy of consumer data. However, skilled talent remain niche within Hong Kong, with candidates possessing the requisite skillset coming from consultancy backgrounds. 

International banks in Hong Kong with resources to spare are more likely to have specialised teams dedicated to TPRM. Financial institutions more commonly allocate related tasks to outsourcing risk teams. 

 

WHAT IS COMPLIANCE TALENT TODAY LOOKING FOR? 

There’s no doubt that compliance talent plays an integral part in ensuring banks and financial institutions remain above board. The supply of talent capable of servicing compliance needs in Hong Kong SAR today is generally stable, and hiring managers should have ample opportunities to source for candidates should the need arise. 

This isn’t true across seniority levels, however. Competition for senior manager levels and above is fierce, with many candidates vying for a single opening. There is also a notable shift in interest from international banks to local ones, which are seen as more stable options as foreign organisations look towards restructuring higher level positions. 

These restructuring exercises may increase demand for middle to junior roles, as senior roles can be divided between two more junior roles as a cost saving measure. Salary is seen as a chief motivator for retention for these hires, as well as the chance for upskilling and exposure to new compliance functions. 

 

HOW CAN COMPANIES ATTRACT AND RETAIN COMPLIANCE TALENT TODAY? 

So how can companies in Hong Kong do better to retain valuable compliance talent? Competitive benefits packages today that speak to this target group goes beyond basic compensation, and may include health and wellness, flexible work arrangements, internal mobility and career development opportunities. Organisations will want to revisit their Employee Value proposition to ensure it emphasises integrity, empathy and personalisation to attract and retain top talent. 

Given the ever-changing landscape of compliance, consider offering courses on new regulations and training in key areas such as cybersecurity, data privacy laws, workplace safety, and diversity. Companies with these initiatives should regularly update their modules to ensure that training remains relevant and aligned with current industry standards. 

 

THE MOST IN-DEMAND ROLES FOR COMPLIANCE IN BANKING & FINANCIAL SERVICES 

These are the top three most in-demand positions in Banking & Financial Services for Hong Kong SAR in 2024, with annual salary ranges: 

  1. GENERAL COMPLIANCE (HKD 216,000 – 540,000) 

Responsible for establishing compliance policies and schemes and maintain good relations with regulators to obtain relevant business licenses. 

        2. DATA ANALYST / SCIENTIST (HKD 360,000 – 960,000) 

These specialists are responsible for automating Anti-Money Laundering / Counter Terrorist Financing detection models for organisations. 

        3. COMPLIANCE DIRECTOR (HKD 1,500,000 +) 

This senior role involves strategic oversight, policy development, risk management, and team leadership in relation to overseeing and managing compliance within the organisation. 

Explore more jobs in Banking & Financial Services here today.

Our Hays Asia Salary Guide covers Hong Kong SAR, China, Japan, Malaysia, Singapore, and Thailand, compiling salary and survey findings of nearly 9,000 employers and professionals across the region. 

Get comprehensive data for multiple industries’ salary benchmarks in Asia and industry recruitment overviews to guide your talent management or career decisions. 

Click this link to download full report!

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