News China

Hong Kong graduates still prefer traditional banks to fintechs

There is reluctance among millennials in Hong Kong to join financial technology (fintech) companies, the South China Morning Post reported recently. Instead, they continue to opt for traditional banking roles. This is in spite of experts claiming that graduate roles available in banks have fallen and those that are available do not live up to millennials’ expectations.

The big brand appeal remains. Experts have suggested that traditional roles in banks are seen as far safer by millennials and their families, but fintech companies are urging millennials to broaden their horizons and take a chance.

Arthur Hayes, chief executive of bitcoin derivatives trading company Bitmex, noted that it had struggled to fill four roles locally on its new graduate programme, which centres on financial derivatives, cryptocurrency bitcoin, and blockchain, the technology behind the digital currency.

“The initial goal was we’d like to hire all Hong Kong-based graduates – but if we can’t find the talent that we need, we may need to look to other regions,” Hayes commented.

But in addition to the lack of applicants, keeping those who applied proved difficult as well, as Hayes explained that Bitmex had even had two candidates turn down offers. One candidate explained that it was due to pressure from family who deemed traditional roles more stable and secure.

Those working in the field are quick to dispute this assumption. As a former Citibank trader, Hayes maintains that start-ups can offer grads even faster career progression as well as exposure to a wider set of skills.

John Mullally, director of financial services in Hong Kong for recruitment consultancy Robert Walters, stated that the number of graduate roles in banks has fallen by 5-10%, while salaries for junior front office roles have risen 15%.

According to Mullally, the cuts are due to the banks finding it harder to retain their graduate staff. This is because the average millennial is looking for more fulfillment from their job, an aspect he posits start-ups can offer.

He explained: “Despite graduates getting more disenchanted with the whole banking world, a brand name is still a brand name to them and goes a long way, and parental influence plays a part as well”.

For Henri Arslanian, who started teaching Asia’s first fintech class at the University of Hong Kong last year, it is essential to train today’s graduates with the skills that are crucial to their careers, particularly in finance where technology such as artificial intelligence and blockchain are set to change existing processes.

“I find it unacceptable business schools are not teaching courses on coding, design and creative thinking. That’s because the bankers of tomorrow may not be your MBAs but rather designers and programmers,” Arslanian said.

“Parents need to be comfortable with that dim sum conversation on a Sunday that their kid is not working at a big bank, but a start-up.”

However, for graduates willing to take a chance, the results are lucrative. Fast career progression, combined with a lack of bureaucracy and competitive wages, prove that fortune favours the brave and here at GradLink, we know a bit of heart can take you a long way. Check out our opportunities today.