Geeks byte back
Banks are battling to hire the right geeks - and there aren't enough techie types to go around.
Michael Lappin, managing director of ML Search, says plenty of banks are losing staff to feed RBS's alleged 600m technology makeover.
Rory Ferguson, managing director of JM Selection, says demand for developers and integrators is unprecedented: banks are increasingly reliant on technology to give them a competitive edge. Technology is no longer just about speed of transaction, he explains; it defines quality of analysis and risk management.
And it's not just the demand for quality, but also quantity. Banks have been hit by a wall of regulation and waves of transactions, notably in complex derivatives and commodities.
Lappin says the fact that bigger banks (like RBS) develop their own software is creating exponential growth in demand for recruits. Smaller banks buy off-the-shelf, creating indirect demand in software houses. Implementation of 'Grid' software that increases computer-processing power across a network is fanning the flames.
As a result, Ferguson is placing senior developers on salaries of 90k or even 110k a year. But the byte is in the bonuses - the 25% benchmark is being inflated to 40% or 50% for complex products and even 100% for directors.
Premiums reward experience as well as candidates' familiarity with banking products. But money isn't everything: "These guys want to be engaged with leading-edge products and need to be in a challenging environment," Ferguson concludes.
