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She added that many NTU graduates join management associate programmes of major financial institutions - PHOTO : SPH
SINGAPORE'S autonomous universities could add almost 20 per cent more to Raffles Place lunch crowds by 2016 than they do today, based on undergraduate enrolment numbers that show strong interest in the banking and finance industry.
This is despite fresh memories of how the industry was sent spiralling downwards just four years ago at the peak of the global financial crisis.
Far from deterring young people, the banking and financial services industry came out tops in popularity among undergraduates in the local public universities, according to an annual survey conducted by recruitment firm JobsCentral. In 2012, 39 per cent of undergraduates indicated it as their top choice, up from 33 per cent in 2011. This marks a reversal of a downward trend that started in 2009 when the popularity of the industry took a hit.
Along with the increased interest in working in the industry came a heightened interest in the study of finance. From 2011 to 2012, undergraduate business courses offered by the three local public universities, and which provide an option of majoring in finance, have all seen increases in enrolment. The National University of Singapore (NUS) Business School, for instance, has seen its first-year cohort for its Bachelor of Business Administration (BBA) course expand to 536 in 2012 from 507 in 2011, in sharp contrast to its graduating cohort of 447 in 2010.
Almost half of its BBA cohorts go on to graduate with a major in finance.
Undergraduates whom The Business Times spoke to offered various reasons why they chose or will choose to pursue the discipline. For some, like business undergraduate Low Wen Chun, the appeal lies in the relevance and practicality of finance. Said the second-year student: "Finance is something that will be very useful in any career I take. It's something that I will be using on a daily basis as well." He will be declaring finance as his major later in his course.
Others are strongly attracted to the nature of the work in finance. Said third-year business undergraduate Ong Si Hao, who has declared finance as his major: "I want to have a career in the finance industry. I believe that a major in finance will give me the necessary experience (for such a career)." He said that his decision was not deterred by the global financial crisis, and he is looking at a career in commodities trading upon graduation.
University staff believe finance still has its lure among young people, given Singapore's position as a regional financial hub.
Said professor Gillian Yeo, interim dean of Nanyang Technological University's (NTU) Business School: "(Our students) are energised by the dynamic nature of the banking industry, especially as globalisation, technological change, industry deregulation and international integration have fundamentally transformed the way banks do business."
NUS Business School's head of career services Wang Wai Yee added: "As Singapore is the major financial hub in the Asia Pacific, there will always be a demand for highly qualified finance professionals, which would in turn fuel the interest of students wanting to study finance."
Aside from an intrinsic interest in the industry, undergraduates may have also been encouraged by a better market outlook as the global financial crisis recedes into the annals of history.
The latest quarterly report by recruitment firm Robert Half indicated that 41 per cent of banking and finance companies surveyed locally are adding new positions, while only 5 per cent are eliminating positions. The report also highlighted strong hiring in areas such as frontline sales and relationship management.
Local banks have been expanding their manpower capacity as well, painting a rosier picture for local graduates looking to join the industry. OCBC, for example, increased its average staff strength by 7 per cent from 2011 to 2012. It hires "more than 200" fresh graduates every year.
"Hiring remains robust in areas such as corporate and consumer banking," said Prof Yeo. She added that many NTU graduates join management associate programmes of major financial institutions.
Against a backdrop of a better employment climate, undergraduates also see greater potential for career development in the banking and finance industry. JobsCentral's 2012 survey reveals that the majority of respondents who indicated the industry as their first choice believed it has "good career growth and opportunities".
"I think being able to stay in a single firm and being able to grow there is very important," said Mr Low. He is looking to work in an international bank, where he believes career growth opportunities lie.
For financial institutions, a rise in the hiring of graduates has resulted in stiffer competition in the industry. Over the last five years, hiring has become "more competitive", according to HSBC Singapore's head of human resources Stella Wong. As a result, financial institutions have been trying their best to remain competitive employers and attract talent.
Said Jacinta Low, head of human resources planning at OCBC Bank: "We have the platform to allow employees to move across the entire OCBC Group as they continue to progress in their career. Employees will not have to start all over again with another organisation just because they want to explore another part of the financial services industry."
Aside from offering opportunities in career development, financial institutions have also been implementing initiatives to improve work-life balance. DBS, for example, has in place a flexible work arrangement programme and encourages its staff to leave at 5pm on Fridays to spend time with their families. These initiatives "ensure that the bank remains an attractive employer of choice", says Samantha Chia, its head of human resources in Singapore.
Some firms go even further to engage undergraduates before they join the workforce. This year, in addition to its internship programme, Citi launched a student mentorship programme, which paired undergraduates to staff with at least five years of experience to allow them to have a better understanding of Citi, as well as the industry.
As the banking and financial services industry picks up in the aftermath of the global financial crisis, what is more important is that the undergraduates' expectations are congruous with what employers are able to offer. "Graduates' expectations about the type of roles and career path have become more refined over the last five years, coupled with increasing expectation about the starting remuneration," said HSBC's Ms Wong.
Recent restrictions on foreign talent may have resulted in a tighter labour market, but employers are maintaining high expectations of what they look out for when hiring fresh graduates. DBS's Ms Chia said the bank still looks for graduates with "exemplary conduct and a track record of academic excellence, active involvement in extracurricular activities and a keen interest in the community".
Said Cecilia Ruru of Barclays' campus recruitment in the Asia Pacific: "Barclays looks for candidates who have a track record of strong academic performance, are passionate about the financial services industry, are keen to learn and not afraid to ask questions or challenge the status quo." The bank was named the most popular employer in the industry among undergraduates, according to JobsCentral's 2012 survey.
While banks were unable to give exact figures of recruitment trends for undergraduates in recent years, the Graduate Employment Survey released by the three local universities last week showed that business graduates maintained a full-time employment rate of about 90 per cent, despite an increase in the size of graduating cohorts.
