FINANCIAL INSIGHTS: HONG KONG
Hong Kong banks face ‘brain drain’ as talent flees amidst strict travel restrictions
More expats may leave with their families when the school year ends mid-2022.
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ong Kong is losing some of its attractions for expatriates and even local talent amidst stringent travel restrictions that workers find challenging. More bankers based in Hong Kong have reportedly shown an interest in moving out or have already gone to other cities, recruitment firms told Asian Banking & Finance. Whilst it is a stretch to call it an “exodus”, a lot of expat bankers are reportedly reaching their breaking point, said John Mullally, regional director - Southern China & Hong Kong Financial Services at Robert Walters. “There are definitely more people leaving than bankers coming in,” Mullaly told Asian Banking & Finance. “That is a result of almost two and a half years of people not being able to freely travel in and out of Hong Kong.” “I’ve been here for 12 years, and I have never seen this level of departures,” he said, adding that this is “the biggest departure I’ve seen.” Olga Yung, managing director at Michael Page, also noted the rise of interest from workers in Hong Kong to work elsewhere. “We have seen candidates in Hong Kong having an
interest in exploring Singapore as an option, because of the current travel restrictions in Hong Kong,” Yung said. To Singapore? With Hong Kong’s reputation amongst expats souring, eyes have turned to the other financial centre in the region: Singapore. Reports swirl around a possible flight to the Lion City, which, unlike Hong Kong, has reopened travel to several countries around the globe. There have been cases of big moves happening “more so than usual,” as per Robert Walters’ Mullally. Most notably, banks such as Citigroup and Bank of America have reportedly moved some roles to Singapore and other markets. But it’s not as much as media reports have led everyone to believe, he said. “The fact is that [just because] a certain amount of senior executives within financial services have moved from Hong Kong to Singapore, doesn’t mean that everybody is going to do that,” Mullally said, adding that it’s not as much as media reports have led everyone to believe. In fact, some of the movement out of the city may reportedly only be temporary, according to Yung.
With Hong Kong’s reputation amongst expats souring, eyes have turned to Singapore
22 ASIAN BANKING & FINANCE | Q3 2022
From a lifestyle perspective, Singapore would be seen as a more attractive place to be now
“Their employers either accommodate remote working for a period of time so they can go home and see their families or allow them to work from another location for the next review period,” Yung said. However, even the recruitment firms mull that some moves could be permanent. Employers’ long-term decisions whether to stay or move out would ultimately depend on when and how fast the travel restrictions in Hong Kong are lifted. “If it gets to a point where there are really a lot of functions being moved out of Hong Kong to other locations, then of course it’s going to have a longer-term impact on Hong Kong,” Yung said, adding that so far, Michael Page has not observed such an occurrence yet. Talent shortage still an issue Despite these challenges, demand for banking talent in Hong Kong has remained relatively stable and hiring remains active. “Employers have already made plans to hire this year, either to replace headcounts spurred by the great reshuffling or to grow their teams to capitalise on the increasing number of market opportunities,” said Rouella Landicho, senior director of Banking and Financial Services, Randstad Hong Kong. “Retail banks, private wealth, and corporate banks are hiring relationship managers to grow and expand their customer portfolios. Similarly, the workforce size in family offices and private banks is expected to grow this year to serve the growing affluence,” Landicho said. Compliance and risk roles also count amongst the most in demand roles by banks–but are the hardest to fill due to the scarcity of available talent, Yung said, adding that all mid to back positions are in demand, including settlements, payment, credit loans, and client onboarding. Landicho echoed this sentiment.
