The first rollercoaster was invented in the 1700s. And, as tech and design advancements improved, the rollercoaster became a massive hit in the 1900s – and beyond. But not everyone is a fan of rollercoasters, especially:

·        Those who are afraid of heights,

·        Those who need an even bigger thrill, and

·        Those who currently work in finance.

Right now, SA’s finance sector is closing its eyes, holding on for dear life, and keeping the paper bag close until the ride is over. Let’s find out why.

Why the fluctuation?

The COVID-19 pandemic caused a global economic downturn – disrupting financial services operations beyond recognition. Businesses have become more cautious and risk-averse, while remote working, cyberattacks, and fraud continue to be thorns in many sides.

But that’s not all.

Digital transformation has accelerated, with more customers and businesses opting for online and mobile banking, payment, and lending services. As a result, there’s a shift in the skills and roles needed in the sector and there’s competition between tech and the ability to find, recruit and retain the right tech-savvy talent.

That’s right: the rollercoaster is even rockier when it comes to people.

For one thing, consider “brain drain”. Many highly skilled workers leave SA for better-paid jobs and overseas opportunities and many businesses, especially those in finance, face a bottleneck due to the critical skills shortage in these sectors.

For another, beware of changing expectations. There’s an increasing need for personalised, convenient, and transparent financial services, pressuring finance professionals to meet needs and wants that weren’t top of mind five years ago.

Horses for courses

It seems, however, that not all rides are created equal. Some companies find themselves on the Tower of Terror, while others are chilling on the Lazy River.

According to CHRO South Africa, a 2022 CareerJunction Employment Insight report revealed that the banking, accounting, and financial management sub-sectors have experienced the biggest decrease in recruitment activity.

For example, Standard Bank announced in 2019 that it would close 91 branches and cut 1200 jobs as part of its digital transformation strategy. This decision was met with backlash from customers, unions, and regulators, who criticised the bank for being insensitive to the social and economic impact.

On the other hand, insurance, investment, and auditing sub-sectors have accelerated employment, fuelled by customers and businesses looking for better protection, security, and diversification in their financial portfolios.

For example, Sanlam reported a 13% increase in new business volumes in 2023, attributing its success to a diversified product offering, strong presence in emerging markets, and focus on innovation and customer-centricity.

These contrasts prove that distinct sub-sectors of the finance industry not only have different resilience and adaptability levels, but also face different opportunities.

Hope remains.

Despite the uncertainties in many areas, there are definitely signs of improvement when it comes to the future of finance recruitment in South Africa.

The sector demonstrates its growing ability to cope with change and disruption, while innovating through products, processes, and people. It’s also working hard to do its part when it comes to L&D and attracting and retaining talent.

Another beacon is the sector’s exploration of new sources and channels for attracting and recruiting qualified and diverse candidates. And, thanks to DE&I, hiring practices are yielding a more attractive work environment.

So, while the finance industry as a whole is prone to rollercoaster rides, its various sub-sectors appear to be both highly adaptable and strongly committed to talent. This commitment, along with a focus on making the proverbial rides safer and more diverse, positions the industry for a future that, while not without its challenges, is likely to have riders with more smiles and fewer bilious complexions.

Contact Network Recruitment to discuss HR in the finance sector or to apply to upgrade your role.