It’s safety first as more people move from global banks to consultancies and Aussie banks

With continued uncertainty in the job market, many financial services professionals are reportedly shifting from global banks to the comparatively safer havens of domestic banks and consulting firms.

One senior financial services recruiter says he has seen an increase in candidates making the move over the last three years, with a definite rise in the last six months. “Many people at the one- to three-year level are seriously questioning the viability of the industry. They feel their current compensation doesn’t adequately reflect the long hours they are putting in and they feel increasingly disillusioned in their jobs.

“It has been a tough few years and it is unlikely to improve any time soon, people are looking around for better options,” he says.

For many, a local bank is a more stable option, particularly those with a strong balance sheet and expansion plans. Domestic banks are also able to move more quickly when it comes to hiring as they do not need to wait for sign-off from an overseas head office.

“The Australian banks can be viewed as masters of their own destiny,” says another headhunter: “They are in a position to hire as local conditions see fit and are not affected by offshore events in the same was as the global banks.”

Local consulting firms and corporates are also perceived to be more attractive for similar reasons. The recent eFinancialCareers Movement Survey found 78% of Australian respondents were considering moving out of financial services and into alternative industries. The survey reveals that perceived better job opportunities is the key driver for this potential movement, followed by higher remuneration.

One headhunter even suggests that this trend is reflected at the top level of some of the global investment banks after the recent departures of several senior bankers.

At the other end of the career spectrum, finance graduates are also being influenced by negative headlines and many are questioning the certainty of their prospects.

Graduate recruiters at some of the professional services firms have reported an increase in applications over the last year, although they say this has steadily risen since the GFC.

“The global investment banks are not as attractive as they once were with many young professionals questioning whether the hard work and long hours required are suitably rewarded in the short to medium term,” One financial services recruiter says: “Smart grads are seeing perceived better alternatives in the market.”

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