As technology advances rapidly, every industry, including the banking and finance sectors, is impacted. Many financial institutions have held onto the old ways of doing things and are now hurrying to catch up. HR directors have numerous challenges to deal with in hiring and maintaining staff.
Gap in Skills
With the adaptation of digital technology, new roles have been developed in finance, especially in the IT department. It can be difficult to find job candidates with the skills necessary to upgrade outdated technology and manage the risk factors that come with technology. Many financial institutions struggle to hire qualified IT personnel who can provide the necessary support to meet regulations in the current climate.
Hiring Practices
One of the main hiring requirements in the finance industry is background checks for candidates. The Federal Deposit Insurance Corporation (FDIC) prohibits banks and other financial institutions from hiring anyone convicted of specific crimes. Many organizations add their own requirements to reduce the theft risk, including embezzlement and fraud. With the challenges of hiring top talent, many HR leaders have been reconsidering hiring policies that eliminate too many qualified candidates from consideration.
Regulatory Practices
Regulations continue to change in areas where customer privacy and data are at risk. Financial institutions must respond by maintaining supervision and ensuring the enforcement of regulations. Some key areas where regulatory changes play a key role include concerns over data privacy, cyber security, compliance, anti-money laundering, and consumer protection.
The FDIC issued new guidance to support banks that work with fintech companies. Services provided by these companies can increase the risk profile of a bank or financial institution, which is why maintaining due diligence becomes critical.
Money laundering continues to be a challenge for financial institutions. Regulators continue to increase requirements for systems and programs to protect the industry from money laundering schemes.
Cybersecurity continues to carry a large risk for institutions and customers. With more information being provided online, cybercriminals have greater access to personal information that they can exploit. Banks and finance organizations have tighter regulations for reporting and higher requirements to prevent such attacks.
Finding Qualified Talent
HR Directors must stay current on the basics of these regulatory changes to find the right applicants. They work with department managers to update job descriptions that reflect the new skills and expertise that are required. They must communicate these new requirements to potential applicants in job ads and throughout the hiring process.
These directors must ensure that new hires are trained adequately to understand and follow the changing regulations. This process may include training current employees, including supervisors and managers, on these new regulations.
Cryptocurrency and Banking
Another area of concern is how cryptocurrency will work with traditional banks. The Federal Reserve has created guidelines that could allow crypto banks to become part of the banking system. Traditional banks could offer services involving cryptocurrency in the near future. More regulations would be developed to guide and oversee these financial institutions.
Many organizations are seeing the benefit of adopting cryptocurrency, with nearly 21 percent of Americans owning some form of this currency in 2022. Of those, over half of the investors were Millennials. Over one-fourth of the investors have an annual income of over $100,000.Â
Facing the Challenges of Recruitment in the Finance Industry
You’re not alone in recruiting in an ever-changing regulatory environment. The team at MRINetwork is here to help. Our executive search advisors work with you to find the top talent who has the skills and knowledge of the finance industry. Our experts understand federal and state regulatory agencies’ unique requirements on banks and finance companies.
We have built a massive professional search database with connections to help you find the best candidates worldwide. We have more than 200 offices on five continents, which allows us to find the expertise you need in global markets.
The market is more competitive today, so you need experts to help you recruit the best applicants to match the positions. We can help you fill a vacancy quickly with the right person. Find an MRINetwork office and learn how we can help with your hiring needs in this highly regulated landscape.