Ravi Menon: Securing good jobs in a growing financial industry
Remarks by Mr Ravi Menon, Managing Director of the Monetary Authority of Singapore, at
the Inauguration of BNP Paribas' Asia Pacific Campus, Singapore, 7 March 2014.
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Alain Papiasse, Deputy Chief Operating Officer and Head of Corporate and Investment
Banking, BNP Paribas Group,
Eric Raynaud, Chief Executive Officer of BNP Paribas Asia Pacific,
Distinguished guests, ladies and gentlemen, good afternoon.
I am delighted to join you today to celebrate the opening of BNP Paribas' new Asia Pacific
Campus here in Singapore. It is a truly impressive campus, skilfully combining the charms of
a colonial heritage building with state-of-the-art facilities and technologies.
A significant move
The opening of this Campus in Singapore is significant for a few reasons.
• First, it demonstrates BNP Paribas' firm commitment to strengthening the
capabilities of its staff in Asia. This is BNP Paribas' first corporate training centre
outside of France.
• Second, it shows strategic foresight. BNP Paribas took the decision to invest in this
Campus three years ago, when it was facing a very challenging economic
environment with the Eurozone gripped by crisis.
• Third, it reflects in a way a broader story of the continued importance of Asia to
European banks. After almost two years of stagnation, European bank lending to
Asia has started to rise again. In the area of trade finance for example, recent data
shows that European banks are increasing their trade finance activities and have
even regained some market share in Singapore.
Three dimensions of a successful finance professional
The financial industry in Asia and Singapore will continue to grow and generate good jobs.
• In 2013, Singapore's financial sector grew by 11%, against an overall GDP growth
rate of 4.1%. Growth was supported by increased activities in areas such as
corporate transaction banking, trade finance, fund management, private banking
and re/insurance.
• Last year, a total of 4,500 jobs were created in the financial sector, most of them in
higher value-added activities.
The demand for highly qualified finance professionals will only grow in the coming years. To
take advantage of this opportunity, our finance professionals must acquire three things:
• depth in core competencies
• cross-functional adaptability
• Asian knowledge and expertise
First, depth in core competencies. Jobs in the financial industry are becoming more complex,
requiring deeper knowledge, expertise, and skill sets.
Take for example, a client adviser working in a wealth management function. Ten years ago,
maybe he was only expected to offer advice on simple loans and basic investment products.
Today, the client is more sophisticated and demanding - he expects more comprehensive
and customised wealth management solutions. The banker must be able to offer advice on
alternative investments, options for intergenerational wealth transfer, and risk management
strategies. In short, he needs much more depth.
Second, cross-functional adaptability. Job functions and business lines are no longer as
static and predefined as they used to be. It is increasingly important that finance
professionals are exposed to a broader range of business areas. Movement across business
lines generates fresh perspectives that could in turn help to drive innovation and identify new
areas of competitive strength.
A compliance professional, for instance, may start off on compliance matters that pertain to
credit activities. Over time, it would be useful to widen his compliance knowledge in other
areas of business such as capital markets. This broader exposure will help him to think about
compliance and risk management issues across different functions of the bank in a more
consistent and coherent fashion. Such a capability will be a key asset when taking on larger
functions and responsibilities in the bank.
Third, Asian knowledge and expertise. Asia is a diverse mix of economies. They are at
different stages of development, with different financing needs and different regulatory and
governance structures, not to mention different cultural norms. To operate a successful
regional business franchise, finance professionals will need a deep understanding of these
differences and know how to navigate the different terrain.
Take for example, a corporate banker, who may be advising the treasurer of a
Singaporebased multi-national corporation with operations in the region. Each jurisdiction may have
different rules and regulations that could impact the cash management and credit needs of
this client. The banker must therefore have deep regional knowledge and strong networks to
deliver solutions for this client. Gaining exposure to Asian markets will therefore put him in a
better position to assume greater responsibilities over time.
Our ecosystem to develop human capital
MAS wants to see more of our finance professionals in Singapore build up these three
dimensions of expertise. And there is a strong ecosystem in Singapore to nurture this
process.
First, MAS and the Institute of Banking and Finance have established a set of industry
standards for Asian financial practitioners, through the Financial Industry Competency
Standards (FICS).
• This offers finance professionals a clear roadmap for building competencies as they
progress in their career, across different job roles and levels.
• Through this framework, we aim to build a strong pipeline of Singaporean talent and
leaders in finance, so that our people can avail themselves of the opportunities that
a growing financial industry will create.
Second, our industry associations are playing an important role in supporting talent
development within specific sectors.
• The Life Insurance Association of Singapore, for instance, is working with the
Singapore College of Insurance, to develop a talent framework that provides
structured training and development opportunities for insurance professionals.
• The General Insurance Association of Singapore is running a global internship
programme which seeks to provide undergraduates with hands-on experience at
insurance firms overseas.
Third, we have in Singapore, fortunately, a strong academic and intellectual climate or
platform to deepen specialisation in finance.
• We have world-class universities such as INSEAD and University of Chicago based
here, who will collaborate with this Campus to design programmes to offer
highquality, specialised courses in banking and finance.
• We have research centres such as the Centre for Asset Management Research and
Investments and EDHEC conducting specialised research in areas relevant to the
financial industry.
• We have training providers such as the Wealth Management Institute and Risk
Management Institute organising programmes and conferences to further thought
leadership in areas of finance.
BNP Paribas' Asia Pacific Campus is a welcome addition to Singapore's ecosystem to build
human capital in finance for the future.
Conclusion
This is an exciting time to be in the financial industry, notwithstanding the challenges it has
gone through since the crisis. It is also an exciting time to be in Asia. But to seize the
opportunities in Asian finance, we need a deep pool of highly skilled and trusted
professionals.
I thank BNP Paribas for growing with Singapore, and for being a strong partner with MAS in
our efforts to develop talent and capabilities. I am confident your strong presence in
Singapore will serve you well as you continue to extend your Asian footprint.