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banking industry trends

Mid-Year Banking Industry Overview

banking industry trends

Here at Johnson Search Group, we have a team of recruiters that specialize solely in banking and finance. They have hundreds of conversations with industry professionals every day, and through their recruiting efforts, they get a great pulse on the market and hiring trends. We sat down with Tracy Isakson, our Banking Division Manager, to gain some insight into the inner workings of the banking and finance industries, here’s what he had to say:

What were the main areas of growth in the banking industry throughout the 1st half of 2019?

This has been an interesting year so far. Right out of the gates, we saw a huge hiccup with the government shutdown, which affected the SBA & Mortgage divisions.

2018 was a stellar year for SBA growth, however, it slowed significantly as the year went on. That stunted growth was then compounded with the government shutdown and the banks and lenders not being able to close on those deals. As a result, the amount of money in the economy slowed significantly, immediately affecting the hiring trends in SBA. Most organizations are not going to be able to recover completely from that during this calendar year.

As organizations are trying to handle current business development production, hiring on the sales/BDO side have slowed. So, in the SBA and mortgage space, teams are focusing their recruiting efforts on operations and support roles in the second half of the year.

On the other hand, we are seeing strong growth in the conventional Commercial Lending space again after a bit of a slowdown in 2018. Banks are looking for strong tenured RMs to bring books and produce right away. And in order to secure these top producers, they are willing to pay top dollar.

How do you foresee recruiting efforts going for the 2nd half of 2019 in the banking industry?

By all indications, we are going to continue to move RMs to new banks. Both in the C&I and CRE space in commercial lending. Additionally, I’ve noticed more core banking operations roles coming onboard this year. IT, Risk, Compliance & Accounting are seeing growth as well.

M&A activity in the banking space is shaping up to be as busy as ever for the remainder of 2019. There are a number of banks in the market poising themselves to purchase or sell. It is pretty fun to watch banks taking advantage of this market. From four projected rate hikes to now holding, the FED has changed their tune and as a result of inflation concerns, a rate cut is likely forthcoming later this year. Banking professionals are doing everything they possibly can to capitalize on that. Utilizing M&A activity, growth in real estate lending, and the cash savings, they are preparing for a strong finish to the year.

Why should banks use your recruiting firm?

Throughout the Johnson Search Group recruiting team, we have experts that specialize in working with banks and some that partner solely with Credit Unions. We know who our target clients are, and we focus our efforts on our strengths throughout the banking and finance industries.

We work primarily with banks and credit unions that are under $40B in assets. The only exception to that is in the Risk/Quant space. We successfully partner with a few banks that are larger in size to recruit these specialized roles.

In the end, we are passionate about what we do, and we will go out of our way to help you fill the urgent needs on your team! If you are in need of some talent, reach out to my team and let’s work together to navigate this tight market.

Banking Trends

Banking Trends to Watch in 2019

Banking Trends

The Banking industry is transforming quickly to accommodate the needs and wants of consumers. Consumers are driving the market by changing how they interact with banking organizations. Users, especially Millennials and their younger Generation Z counterparts, want quick and easy access to banking services. And this revolution isn’t expected to slow down anytime soon. As we near the mid-way point of 2019, here are a few banking trends to watch out for.

Privacy is becoming a priority

Security and privacy are a BIG concern with customers. In just the first quarter of 2018, nearly 1.5 billion records were compromised. As banking organizations continue to digitalize their products and services, it’s becoming extremely important for them to be transparent and honest with how they use consumer data. Banks will have no choice but to invest in their security tools and grow their IT teams to better protect their customers’ data from cyber attacks and leaks.

A shift in culture

By 2022, the primary channel to access banking services will be mobile devices, with 90 percent of consumers using their phones or tablets to access their bank accounts. In other words, traditional banking models are becoming increasingly irrelevant. In fact, only 49 percent of millennials prefer to bank with access to branches. Thus, banks must change how they engage with consumers because less and less of them are physically walking into branches to access banking services.

Brand loyalty is diminishing

Brand loyalty is also becoming less important for consumers. Gone are the days of sticking with the “family bank” and using them for all of your banking needs. Rather, the younger generations are more concerned with costs and ease of use. 28 percent of Millennials prefer to bank online for better rates as opposed to just 11 percent of Boomers. Customers want the best rates and lowest fees they can find. As a result, they are shopping online instead of walking into the neighborhood branch when it comes to securing a loan or opening up a new line of credit.

Get the talent you need to meet these changes

The Banking industry is ever-changing. It’s constantly implementing new strategies and services as demands from consumers develop. If your team needs help finding the right talent to help accommodate these banking trends, let’s work together. Our team at Johnson Search Group can help you find the candidates you need to adjust to the growing demands from your customers.

Banking Trends

Banking Trends Heading Into 2019

Banking Trends

With the end of the year fastly approaching, it’s hard to think that 2019 is right around the corner. Especially, because this year we’ve seen such a big growth in the banking industry. And well, in all career’s as a whole it’s been a record-breaking year. Even though it may be nerve-racking to think about next year, it looks like the trends we’re seeing now will continue.

In 2019, it looks like there are several trends financial institutions will continue to see into the new year. These are the three banking trends that are projected to grow throughout the 4th Quarter and into 2019 in the banking and financial services industry.

Customer Experience

Organizations will need to continue to keep up with the ever-changing digitization and needs by consumers. Consumers want easy access to their accounts and the flexibility to engage with the institutions when it’s convenient for them.

Consumers are geared more towards digital experiences rather than physical or in-person interactions, even when dealing with their money. Banks are closing branches at a higher rate than ever before. According to CBS, “Only 66 percent of Millennials visited a brick-and-mortar branch within the past six months, compared to 81 percent of Baby Boomers and 80 percent of Traditionalists.” To attract the younger generations, financial institutions must continue to innovate and enhance the user experience for all consumers.

Cybersecurity risks

As threats from hackers become more sophisticated, institutions will need to continue to be aware of these factors and try to anticipate the risk involved with the adaptation of new technologies. According to the Global Banking Outlook for 2018, banks and financial institutions place cybersecurity as their top priority for 2018. We anticipate this trend will continue to increase throughout 2019 as more and more banking functions digitalize.

Tight-talent market

There are more open positions than candidates on the market. Institutions will need to find new ways to attract and retain talent if they want to compete in the marketplace. According to Forbes, salary may not matter as much as employers think.

Yes, it is a big factor in whether a candidate will accept the position or not, but the culture of the company is crucial. Conveying the benefit of working for your institution and telling candidates why they should come work for you is an essential piece of attracting new candidates. No longer is it the bank picking the right candidate; in this tight job market, candidates are now picking the right institution for them.

Get the help you need

One thing that is for certain is the market is intense. And there are no indications of that changing as we get closer to entering the new year. If your banking or finance institution is struggling to attract qualified candidates to your organization, let’s have a conversation. I can help your team find the right candidates that are ready to make an immediate impact on your bottom line.