Ho Chi Minh City, August 3th, 2022 - Navigos Group, Vietnam’s leading recruitment service provider, which has owned the online job-searching website VietnamWorks, the middle and senior personnel recruitment company Navigos Search, published the report “Opportunities and Challenges of employers and candidates in Banking in Digital Transformation”.
Part 1: The context of the Banking industry by digital transformation requirement
The COVID-19 pandemic’s effect on Banking is not significant
The pandemic also forces banks to increase provisioning and burden decreasing interest rates from the State Bank. As a result, some banks also offer reductions in salaries and bonuses to staff at the management level when profits are not as expected.
Digital transformation is a certain change
Faced with the increasingly changing consumer behavior of customers following the trend of digitalization, banks have been applying digital transformation to meet these irreversible changing needs.
Part 2: Challenges in recruiting in meet the needs of digital transformation
Demand for recruiting personnel in the digital transformation sector
Banks are focusing on digital transformation and automation, which leads to the increasing demand for IT and data personnel. These recruiting positions remarkably emphasize high-quality human resources, yet it is difficult to address and costly due to market competition.
Challenges in recruiting in digital transformation
Limited number of candidates
Nowadays, candidates in the Vietnam market in banking’s digital transformation field are limited in terms of quantity and quality. In terms of quality, there is a shortage of candidates who has experience utilizing advanced technology. In terms of quantity, the number of candidates does not satisfy the need of banks.
Fierce competition for candidates
According to Navigos Search, candidate competition is extremely fierce in this industry, particularly in Information Technology (IT). It is always difficult to find qualified candidates, not only in banks, but also in other industries such as finance, e-commerce, healthcare, and education.
Changes in the bank's recruitment requirements
Banks are now able to look for applicants and contact them directly thanks to the development of social networks and information technologies. In the past, banks frequently gave preference to applicants with relevant credentials and prior work experiences at other banks.
Candidate qualities are taken into account when recruiting
Products and services in the digital transformation will be customer-centric. As a result, hiring guidelines for candidates in this profession will be based on these criteria. Additionally, the bank will look for applicants who possess essential skills including critical thinking, design thinking, data analysis, and English fluency that are related to adaptation in the context of digital transformation.
Banks use various channels to hire suitable candidates
A variety of channels to attract potential candidates. They are conducting Employer Branding programs, using domestic and international “headhunting” services and conducting talent roadshow activities for searching mid-level and senior-level candidates as well as overseas Vietnamese, and using RPO service (Recruitment Process Outsourcing) to attract candidates who are potential for digital transformation.
Part 3: Challenges and opportunities of candidates in the digital transformation field
For candidates who are not majoring in Information Technology (Non-IT)
Banks can send non-IT employees from relevant departments to participate in digital transformation projects. In addition, many banks also recruit experienced candidates from other banks. They are also open to candidates from other fields that have implemented digital transformation, such as e-commerce and financial technology (Fintech).
For IT Candidates
IT candidates face fierce competition in the market
Since technology and data are the core sectors during a digital transformation, a large number of candidates is required. Besides, while both banks and non-banks compete fiercely for IT candidates, their backgrounds can be varied, and banking experience is not an essential qualification.
IT candidates barely meet the needs of digital transformation
It is uncommon for IT applicants to satisfy all corporate requirements. Therefore, it is acceptable when the candidate satisfies 50% to 70% of the hiring standards.
Employers can gradually lower or reduce the recruitment criteria as the number of IT candidates with extensive experience falls short of market demand. They accept hiring engineers with little experience to train and retrain.
Digital transformation in banking: challenges for candidates
The sophisticated digital transformation poses challenges for IT candidates. Digital transformation is a model that necessitates large-scale and synchronous investment, agility, and rapid response.
Opportunities for candidates in digital transformation
IT candidates are equipped with agile and scrum and have the possibility of working in international firms and being up to date with the latest technology after becoming acquainted with many skills by attempting various projects.
The role of foreign and Viet Kieu (overseas Vietnamese) candidates
Advantages and challenges of foreign and Viet Kieu (overseas Vietnamese) candidates.
Candidates who are foreigners or Viet Kieu (overseas Vietnamese) often take up key positions or be leaders in IT, data or Digital Sales, Marketing, and Product. The strength of these candidates is that having worked in developed markets around the world on digital transformation assists them with methodical mindsets and being customer-centered.
Asian, European, and American candidates with working experience in Southeast Asia are preferred.
In the hiring process, banks frequently favor applicants from leading nations in banking, finance, and digital transformation, especially those in Europe and the United States. However, because of the geographical, cultural, and language differences between the nations, many foreign candidates encounter challenges during the hiring process. Therefore, banks have also recently prioritized recruiting candidates from neighboring countries such as Singapore, Hong Kong, Thailand, India, or European and American candidates who have worked in ASEAN (South East Asian countries).
Part 4: Recommendations of Navigos Search for banks and candidates
- Improving recruiting methods to approach suitable candidates and accelerating enhancing recruiting appropriateness compared to the job market.
- Conducting appropriate HR policies in attracting candidates.
- Building Corporate Branding and Employer Branding.
- Using varied recruitment solutions such as online job portal, headhunting, and RPO.
- Improving the knowledge and skills related to digital transformation.
- Improving communication and problem-solving skills as well as critical thinking.
- Being adaptable to new working techniques such as Agile and Scrum.
- Improving English proficiency.
- Regardless of having options, a candidate always needs to build a strategy and vision for a sustainable career path.
- Taking part in courses such as seminars/webinars and widening networks as well as relationships in terms of digital transformation to gain in-depth knowledge in a particular field.
About Navigos Group
Navigos Group has entered the 20th year of operation in the Vietnamese market. Up to now, VietnamWorks has always been the leading source of recruitment data in Vietnam with nearly 5 million users and 13,000 employers registering for an account. Navigos Search is a leader in middle and senior personnel recruitment with more than 300,000 candidate resumes. Since 2013, Navigos Group Vietnam is a member of en Group specializing in providing recruitment services with its headquarter in Tokyo (Japan).
Fill in the Form to download the full 2022 Report on: Opportunities and Challenges of employers and candidates in Banking in Digital Transformation