Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
Banks rush to employ digital specialists
Young job seekers in the financial sector queue up for consultations with banks at a job fair in Seoul, Aug. 23. Newsis
By Lee Yeon-woo
By Lee Yeon-woo
For decades, traditional banking jobs have been predominantly dominated by those with majors in business or accounting. This trend, however, appears to be waning as traditional employees depart due to the decreasing number of physical branches, digital talent is stepping in to fill the void.
Starting in September, the banking industry began its recruitment process to acquire new talent for the upcoming year. Notably, all recruiting banks are actively seeking professionals specializing in digitalization and information and communications technology (ICT).
Shinhan Bank, accepting applications until Sept. 21, is on the lookout for professionals capable of developing and managing digital services. The bank has even launched a separate website specifically to guide digitalization and ICT applicants.
Woori Bank and Hana Bank, who are closing their recruitment windows on Sept. 25 and 20, respectively, will also be searching for individuals to join their digital-related departments. While KB Kookmin Bank is yet to announce its recruitment plans, industry observers expect that the bank will follow the emerging trend.
The efforts of traditional banks to enhance their digital capabilities can be attributed to customers' preference for digital platforms, like apps, over physical branches, coupled with the decision of banks to shut down branches.
Each year, between 100 and 200 branches of the top five banks shut down, diminishing the demand for a large number of employees. This year, more than 2,000 employees from these top banks have resigned as of August.
Industry insiders believe that the competition for acquiring digital talent will only intensify, given the rapid pace of technological change.
“The enhancement of digital capabilities has transitioned from being a necessity to a fundamental aspect in the financial sector. The proactive hiring of digital experts, including those who just graduated high school, is part of a strategy to attract and nurture future talent while expanding the digital division,” said a commercial bank official. “Given the rapid technological change, securing them is considered crucial to survive in the market competition.”
According to the Financial Services Commission, the proportion of in-house IT staff in the banking industry increased from 47.7 percent in 2017 to 55.3 percent in 2021. Banks are focusing on enhancing their own digital capabilities by employing experts, rather than outsourcing.
When looking at the distribution of staff by role, the ratio of the sales and marketing sector decreased from 68.8 percent in 2013 to 56.6 percent in 2022. On the other hand, the proportion of management staff, including IT, grew from 16.3 percent to 19.8 percent during the same period.