With the legacy of the 2008 global financial crisis still having an effect, Hong Kong’s banking and financial sector is facing the challenge of attracting talent to future-proof the industries, amid a swiftly shifting compliance and technological landscape.
“One of the major lessons that we learned from the global financial crisis is that the banking industry cannot stay strong without the support of good talent,” says Carrie Leung, CEO of the Hong Kong Institute of Bankers (HKIB). A talent development survey conducted by the HKIB last year shows that only 51 per cent of respondents aged 18-34 think that a career in the banking industry is appealing. “I think this may be partly due to misperceptions about banking formed after the global financial crisis,” Leung says.
The HKIB believes this perception can be reversed by strengthening practitioners’ competencies. The HKIB is a programme administrator for the Enhanced Competency Framework (ECF), introduced by the Hong Kong Monetary Authority to standardise professional training in the industry. Leung says the ECF sets out a series of common and transparent competency standards that enable effective training and professional development for practitioners and new entrants.
Leung also believes Hong Kong’s banking industry has an important role to play in the China-led “Belt and Road Initiatives” (BRI), a modernised vision for the ancient Silk Road, connecting Asia, Europe, the Middle East and Africa through investments in trade infrastructure. “Hong Kong as the largest offshore renminbi hub, with its unrivalled banking and finance infrastructure and free flow of capital can serve as the fundraising hub for numerous infrastructure projects,” says Leung.
She adds, however, that education is of great importance for the initiative to be truly successful. “Many banking practitioners are still not very familiar with the BRI or the countries along the Belt and Road routes,” notes Leung. She suggests that, to address this, industry seminars and even foreign visits can help banking professional have a better understanding of the initiative, as well as opportunities the ambitious undertaking can provide for Hong Kong banks.
Mabel Chan, president of the Hong Kong Institute of Certified Public Accountants, shares a similar view. “We need to be more open and aware of the different cultures of ‘Belt and Road’ countries,” she says. “In fact, for Hong Kong’s accounting sector to continue to grow stronger, we should be more open and embracing of cultures globally.”
Chan sees a long-term role for Hong Kong’s accountancy sector in providing services to companies and investors involved in the BRI. In the early stages, she says infrastructure development will require investment and project contracting, areas where Hong Kong has a lot of experience. Later, as trade and business develops along the various Belt and Road corridors, companies will require tax, auditing and advisory services.
Meanwhile, Chan says there is an ongoing demand for professionals to help clients meet their anti-money laundering, tax evasion and common reporting standards compliance requirements. “With no end in sight on the amount of wide-ranging regulations that focus on corporate accountability, accounting firms are looking for the skills and insights needed to meet today’s tough economic and regulatory challenges.”
Given that Hong Kong has led the world in IPO listings, the city’s professional services firms have stayed busy. “As client companies move into new jurisdictions with differing tax laws and operating rules, accountants must continually update their knowledge to ensure they provide the best advice and support,” says Chan.
Because Hong Kong has a well-established platform of international experience and the legal and professional talent resources, Chan says Hong Kong-based accountants are in a good position to assist Chinese enterprises seeking business opportunities overseas to “go out” more smoothly.
As new technologies have increased influence in every area of business, including accounting, Chan believes the next generation of accountants can boost their career opportunities by combining financial knowledge with big data, business analytics and artificial intelligence (AI) know-how.
The World Economic Forum predicts that, by 2020, five million jobs will be lost to AI, including a displacement of jobs through automation in the accounting industry. “Those who are able to utilise the opportunities created by AI, big data and analytical tools will play a vital role in improving business decisions and provide clients with unparalleled data analysis combined with the human touch,” says Chan.
This article appeared in the Classified Post print edition as Planning ahead.
