PETALING JAYA- The talent crunch in the local financial services sector is expected to worsen in the coming years partly driven by the Gen Y segment that currently makes up about 25 per cent of the workforce in the banking system.
Asian Institute of Finance (AIF) chief executive officer Dr Raymond Madden said that the talent shortage could be due to the lack of understanding on how to cope with the Gen Y group.
"Within the next eight to nine years, we expect the Gen Y workforce in the banking system to rise to about 50 per cent from 25 per cent currently, which means that almost half of the people working in banks will be Gen Y employees, namely those below 30 years of age.
"At the moment this group of people (Gen Y) makes up about 40 per cent of the current workforce in Malaysia and in many ASEAN countries. This number is expected to increase to 75 per cent within a relatively short span of time,'' he told StarBiz.
According to the Financial Sector Blueprint published in 2011, the workforce number in the financial sector stood at 144,000. It is anticipated that over the next 10 years, the sector would require a workforce of about 200,000, an increase of 56,000 from the current 144,000 employees.
Madden said among the sectors in the financial services industry that were facing talent shortage was in Islamic finance, notably in the areas of syariah expertise.
Besides this, he added, the crucial areas in the banking system facing talent shortage were in credit and risk management, corporate finance, treasury and wealth management.
He said due to the expected rise of the Gen Y workforce in the financial services in the coming years, banks and other financial services sectors needed to have a better understanding and knowledge of this group.