Guest comment: Banks look beyond own borders
Are you an IT professional who wants to break into investment banking? Rory Ferguson, head of IT recruitment at JM Selection, says the skills and experience pendulum could be swinging your way.
Investment banking is the most demanding sector to recruit IT talent for. That could be about to change, however, with more opportunities for more candidates sourced further afield.
Historically, banking CIOs have demanded both the best available technical skills and a detailed understanding of the business IT pros serve.
This profile has extended across the full spectrum of the IS function and has provided a significant obstacle for those trying to break into this dynamic market and build such knowledge - the classic Catch 22.
JM is frequently asked to source developers with knowledge of specific financial products or instruments. 'Java with equities' is one of the most popular cocktails and it follows quite logically that the greater the business, or customer focus within a role, the more acute the business knowledge required. Or certainly that was the case...
Demand leading recruitment changes
Over the last two years, we have witnessed a snowballing momentum in favour of the candidate. Active candidates often have two or three options on the go by the time they reach 'offer stage'.
Hiring managers are now in the unfamiliar position of actually having to proactively 'sell' their opportunities at interview, as well as assessing the quality of the individual sitting opposite them. Such a tactic was rare during the buyer's market of 2001 to late 2003.
This shift in initiative has also had an effect on salaries. In the face of multiple offers and counter-offers, the trend of offering 5k less than the prospective employee's target price is diminishing, which is a huge relief to recruiters trying to manage their stars through the minefield that is the selection process.
The simple fact is there are not enough 'ideal' candidates to satisfy the demand. This has influenced an intriguing, but welcome, development, which is of particular relevance to those IT professionals who have always assumed that they can't break into the investment banking sector without possessing previous experience.
Essentially, we are observing a reduced focus on business experience, not just among the technical tiers, but more surprisingly, within the business-facing, analysis-orientated functions. We now have genuine demand for business analysts, but without the former mandatory pre-requisite of relevant business acumen.
The emphasis has shifted in favour of core business analyst skills, such as solid knowledge of structured methods, data modelling and business re-engineering, coupled with really strong client-facing skills.
Banks will teach you the business
An integral part of the profile has to be an assertive, but diplomatic, demeanour that radiates the gravitas needed to inspire confidence among the senior stakeholders and project sponsors. In many cases, the ability to manage and orchestrate change through structured processes is more important than an understanding of, for example, prime brokerage.
Many of our clients have highlighted that teaching someone to be a good business analyst is far tougher than coaching business knowledge.
You can't fault the logic. Customer-orientated professionals who can drive transformation using a combination of structured techniques and a 'can do' attitude are now finding that the barriers to entry into investment banking are no longer insurmountable.
One word of caution, though, to those aspiring to work in the City. Typically, what you lack in banking experience you will need to make up elsewhere. You will need to have delivered within a respected consultancy brand. Professional services typically provides the best route into the City for the uninitiated and we have clients that are keen to see skilled business analysts from such structured environments with strong customer focus.
The reality is that the preference will always be for the complete, rounded article, but market conditions are making nirvana a shrinking dot on the horizon.
