Banks in Hong Kong are facing growing criticism from recruitment experts who say lengthy and complicated hiring procedures are pushing top candidates to competitors. Robert Sheffield, managing director for China and Hong Kong at Morgan McKinley, said many highly skilled workers refuse to go through multiple interview layers, long assessments, and demanding documentation when rival firms offer faster hiring experiences.
Applicants are often asked to complete cognitive, personality, and behavioral tests, provide detailed references, and sit through several interviews with compliance and risk teams. Sheffield noted that while banks are under intense regulatory pressure, this drawn-out process is costing them top-tier hires.
The stricter checks stem from tighter regulations around anti-money laundering, artificial intelligence, data privacy, and know-your-customer requirements. As a result, banks are expanding roles in compliance and risk management, as well as technology-driven functions. Relationship managers with strong client networks remain in high demand, according to Robert Walters Hong Kong.
However, candidates are also weighing stability before moving jobs. Elaine Chu, senior manager at Robert Walters, said many job seekers are cautious as pay increments have shrunk compared to previous years.
Mandarin Requirement Under Scrutiny
One of the major sticking points in Hong Kong’s banking job market is the language requirement. Sheffield argued that mandating Mandarin for certain roles is unnecessary, especially when English is sufficient for the job. Despite this, many institutions insist on it, stretching out hiring processes unnecessarily.
About 70% of Hong Kong’s talent pool comes from Mainland China, but experts say banks should reconsider rigid requirements if they want to broaden their access to skilled workers.
Despite the hurdles, banks in Hong Kong added more staff than they cut last year. According to an Asian Banking & Finance survey, 15 banks increased their headcount by 2.5%, bringing total employment to more than 70,000. Hang Seng Bank led the way with a 19% hiring boost, adding over 1,300 employees. Tai Sang Bank also saw strong growth of 40%, albeit from a much smaller base.
Meanwhile, HSBC’s Asia-Pacific unit remained the largest employer in the sector with about 20,000 workers, unchanged from 2023. On the other end, Dah Sing Bank reported the sharpest cut, reducing its workforce by nearly 7%.
IPO-Related Jobs Show Signs of Life
One bright spot has been in capital markets. Chu said initial public offering (IPO)-related positions have picked up, thanks to a resurgence in Hong Kong listings. Data from Ernst & Young showed IPO proceeds surged more than eightfold in the first half of the year, driven largely by dual listings from Mainland Chinese companies.
Still, recruitment experts note that automation and outsourcing are reshaping hiring priorities. Sheffield said generative AI is gradually replacing generalist roles, with banks focusing instead on highly specialized skills.
What The Author Thinks
Hong Kong banks are stuck between compliance pressures and outdated hiring practices. While regulators demand stricter oversight, banks are making the mistake of applying blanket rules that frustrate skilled candidates. Adding unnecessary hurdles — from excessive interview rounds to mandatory Mandarin — sends the wrong signal to talent that values speed, transparency, and fairness. If banks don’t adapt, they risk losing not only today’s top workers but also the next generation who will simply take their skills to faster-moving global competitors.
Featured image credit: Bernard Spragg. NZ via Flickr
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