Market Guide - Nicoll Curtin

BIG DATA of central banks surveyed said they had given active consideration to big data in 2016. 90% use a self-developed data platform to handle regulatory.
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NICOLL CURTIN FINTECH & CHANGE MARKET GUIDE 2016

A WORD FROM OUR CEO CONTENTS Executive Summary.................................................................. 3 United Kingdom.........................................................................4 Market Trends........................................................................... 5 Nearshoring............................................................................... 6 Risk Management..................................................................... 7 Cultural Environment............................................................... 8 Gender Diversity in Technology..............................................9 Regulatory Growth..................................................................10 Big Data.....................................................................................11 Traditional Institutions & FinTech Firms.............................12 Salaries - UK..............................................................................13 Switzerland...............................................................................17 Market Trends..........................................................................18 Salaries - Switzerland............................................................. 20 Singapore................................................................................. 23 Market Trends......................................................................... 24 Salaries - Singapore................................................................ 26 About Us................................................................................... 27 Contact Us................................................................................ 28

A EXECUTIVE WORD FROM OUR CEO SUMMARY

I am happy to present the Nicoll Curtin Market Guide 2016. With offices in three of the world's most prominent FinTech hubs (London, Zurich and Singapore), this guide provides an overview on the year's defining trends in financial technology across the globe.

NEIL CLARK PERFORMANCE DIRECTOR

Directing Nicoll Curtin's high performance and continued success across London, Singapore and Zurich. Responsible for overseeing the development of client partnerships and ensuring an unrivalled level of customer experience.

We have seen substantial growth in the financial technology market, and greater focus on Big Data and Digital initiatives. But perhaps the defining trend in 2016 is an increasing push from financial institutions towards customer-centrism. While growth in the financial industry has traditionally been steered by shifts in regulatory demand, the sector is making exciting strides in customer experience. This embrace of a more customer-centric model is in part a response to competition from newly arising FinTech firms, and has necessitated transformational change both at an operational and cultural level. However, in an economic climate impacted by increasing political uncertainty, this commitment to providing an excellent customer experience is the most surefire strategic response. If you would like to fill a vacancy or find a new opportunity, please use the contact details at the back of the guide and feel free to get in touch. I hope you enjoy this year's market guide and have an outstanding 2017.

UNITED KINGDOM

MARKET TRENDS ANDREW HATHAWAY HEAD OF PERMANENT - UK

ANDS

Managing the permanent business at Nicoll Curtin, delivering top talent to a range of companies within the financial sector.

PATRICK MCKENZIE HEAD OF CONTRACT - UK

Managing the contract business at Nicoll Curtin, providing highly skilled technical and change resource to the financial sector.

Banks and large financial institutions have increasingly embraced new technology such as NoSQL databases and ‘big data’ technologies. This has become a necessity in many cases, owing to the sheer volume of data that institutions hold now in comparison to a decade ago. At the same time, Blockchain and Crypto Currency businesses are attracting large amounts of venture capital funding publicity. This has the potential to radically change the banking sector, particularly given the crucial precedent set by a US Supreme Court ruling that a cryptocurrency (namely Bitcoin) is indeed ‘Money’.

We expect to see continued hiring across Risk and Regulatory driven change with a focus on FRTB, MiFID, Financial Crime & Compliance driven programmes of work. We anticipate a greater focus on Big Data and Digital initiatives – financial institutions need to improve in these areas from a regulatory and customer perspective. Whilst larger institutions will continue to move non-core roles to more cost effective locations, the market in London will be kept busy due to continuing need for highly skilled resource to help the sector in meeting these demands.

NEARSHORING

2/3

people employed by the financial and professional services industry work outside Greater London

60%

of the GVA produced by the UK’s financial and professional services is generated by companies outside London

40%

of UK financial services tax receipts come from international firms who have their European base in the UK

There has been an increase in hiring for financial institutions in ‘near shore’ locations. This has resulted in less reliance on offshore centres, as well as increased deliberation on hiring in primary cost centres like London, New York and Tokyo. This is evidenced by significant hiring drives in Birmingham, Bournemouth, Glasgow, Belfast and Northampton.

Statistics from UK Financial Centres of Excellence

RISK MANAGEMENT

64%

report an increase in the size of the group risk function

60%

believe the function size will continue to increase

55%

rate IT applications and systems as extremely or very challenging for their risk function

Extent to which risk culture is reflected in recruitment:

73%

25%

TO SOME EXTENT

TO A SIGNIFICANT EXTENT

EY - 2015 risk management survey of major financial institutions

CULTURAL ENVIRONMENT

65%

of senior bankers believe that there are significant cultural problems across the industry

82%

of senior bankers agree that banks would benefit from a change of culture

80%

of firms are in the process of changing culture

A POSITIVE FUTURE Financial institutions are facing an impending skills gap, highlighting the need to attract and retain a new generation of talent. A Deloitte UK survey found that 33% of firms were worried that a job offer had been turned down in the past because the young candidate didn't like their business culture. This reflects a broader generational shift in career priorities. Indeed, a PWC study found that the millennial generation ranks personal learning and development as their first choice benefit from employers, beating out flexible working hours (second place) and cash bonuses (third). As cultural expectations shift, financial institutions are increasingly open to change. Firms like JP Morgan are relaxing dress codes to reflect "how the way we work is changing". These cultural changes signal a positive trend for the future, as the world of finance becomes more inclusive. EY - 2015 risk management survey of major financial institutions Deloitte UK, Culture in Banking: Under the microscope

GENDER DIVERSITY IN TECHNOLOGY

12.8% 51%

Women make up 47% of the workforce, but only 12.8% of the STEM workforce.

of female STEM graduates go on to work in STEM roles, compared to 68% of male STEM graduates.

A large majority of young girls do not pursue science and engineering careers because they are not provided with adequate careers information. The limited information that is provided often reinforces gender stereotypes, perpetuating a perception of tech as unfeminine. Job specifications generally require prior banking experience, and therefore directly prevent outside talent from consideration. For development roles, there is more crossover potential for outside talent. However, these positions are increasingly front-office facing, necessitating prior experience in risk calculation, bond pricing and trading algorithms. Candidates with CV gaps may be viewed in a negative light. This is rooted in a perception that they may have had difficulty finding work, or that their absence may have prevented them from keeping abreast of the latest technological developments. This disproportionately affects women who have taken maternity leave. There is a general lack of awareness concerning the legality of both positive action and positive discrimination. Positive action, which is lawful, means employers can choose to hire candidates from underrepresented groups, provided they are equally qualified. Positive discrimination, such as setting quotas rather than targets, or hiring lesser qualified candidates to fulfil those quotas, is unlawful. Women in Public Life, the Professions and the Boardroom', House of Commons

'

REGULATORY GROWTH

£1.6bn

65%

Preparations for MiFID II are expected to cost Europe's financial institutions a total of £1.6bn in 2017

of investment managers see MiFID II as a key strategic challenge

£320m

Financial institutions will spend an estimated £320m each in operational costs to implement ring-fencing reforms

£120m

To implement ring-fencing reforms, banks will spend an average of £120m per year on additional staff in areas such as IT, risk and HR

£48m £120m

Expected FRTB investment for a Tier 1 bank between 2015 and 2018 in terms of IT and implementation

Deloitte - Navigating MiFID II Expand and IHS Markit

BIG DATA

BIG DATA

55%

of central banks surveyed said they had given active consideration to big data in 2016

90%

use a self-developed data platform to handle regulatory data collection.

Increasingly, the use of data and analytics is becoming a significant competitive differentiator to drive growth, reduce costs and manage risk. Below are a few of the key trends we've seen in 2016:

Data platforms: Organisations are under pressure to incorporate data platforms into their data divisions. Data platforms are rapidly replacing data lakes and data hubs, because far more can be stored on these data platforms backed up by the cloud. Business Intelligence: What an organisation would previously have done from their end is now being done by the users themselves. This is fantastic, although it initially will cost organisations a considerable investment to make the transition. In the long-term, however, this is a more efficient, money-saving method of working. Enterprise architecture: Enterprise architecture has always been crucial. But organisations are now realising just how crucial it is to bring the business and the IT strategy together, in order to make more informed decisions and most effectively meet business objectives. Data agility: One of the major key trends in big data is data agility, which improves the operational efficiency of the business by focusing on how quickly value can be extracted from data and converted into action. Big data in central banking: 2016 survey, Central Banking

TRADITIONAL INSTITUTIONS & FINTECH FIRMS

64%

of banks plan to engage with fintech firms by lookng to partner or aquire them

60%

of banking professionals agree at least somewhat that their organisation has put FinTech at the heart of its strategy

73%

of banking professionals see improving cost efficiency as a key opportunity presented by FinTech

53%

For traditional financial institutions, the most commonly cited challenge in working with FinTech companies is IT security (53%)

54%

For FinTechs, the most commonly cited challenge in working with traditional banks is differences in management and culture (54%)

IDC Insights & SAP financial services report 2016 PwC Global FinTech survey

PERMANENT SALARIES - UK DEVELOPMENT Role

Low

Med

High

Java Developer

50,000

80,000

110,000

C# Developer

50,000

80,000

110,000

C++ Developer

50,000

80,000

110,000

Python Developer

50,000

80,000

110,000

Hadoop Developer

65,000

85,000

115,000

APP SUPPORT / INFRASTRUCTURE Role

Low

Med

High

App Support

45,000

60,000

80,000

Network Engineer

40,000

60,000

80,000

Sys Admin

50,000

65,000

85,000

Desktop Support

30,000

40,000

50,000

PERMANENT SALARIES - UK CHANGE & PROJECTS Role

Low

Med

High

Business Analyst

55,000

75,000

95,000

Project Manager

65,000

90,000

115,000

PMO

60,000

75,000

90,000

Programme Manager

85,000

105,000

125,000

RISK & AUDIT Role

Low

Med

High

Risk Analyst (Market / Credit)

50,000

60,000

80,000

Risk Manager

65,000

75,000

90,000

Risk Modeller

65,000

75,000

85,000

Operational Risk

55,000

75,000

90,000

QUANT Role

Low

Med

High

Quant Developer

55,000

80,000

115,000

Quant Analyst

65,000

95,000

140,000

Quant Modeller

65,000

95,000

140,000

CONTRACT RATES - UK DEVELOPMENT Role

Low

Med

High

Java Developer

550

650

700

C# Developer

550

650

700

C++ Developer

550

650

700

Hadoop Developer

550

650

750

APP SUPPORT / INFRASTRUCTURE Role

Low

Med

High

App Support

500

550

600

Network Engineer

500

550

600

Sys Admin

450

500

550

Desktop Support

450

500

550

CONTRACT RATES - UK CHANGE & PROJECTS Role

Low

Med

High

Business Analyst

500

550

600

Project Manager

600

650

750

PMO

650

750

900

Programme Manager

700

900

1,100

RISK & AUDIT Role

Low

Med

High

Risk Analyst (Market / Credit)

400

475

550

Risk Manager

600

750

900

Risk Modeller

400

500

600

QUANT Role

Low

Med

High

Quant Developer

600

800

1,000

Quant Modeller

550

650

750

SWITZERLAND

SWISS MARKET TRENDS

The Swiss market has remained relatively stable, with no significant slow down in new projects, despite international uncertainty.

TOM OLOUGHLIN EXECUTIVE DIRECTOR SWITZERLAND

Director of the Nicoll Curtin Recruitment office for Switzerland, based in Zurich. We recruit IT and Change professionals for a range of organisations, spanning Banking, Financial Services, FinTech, Consultancy, and others.

SALARY BANDS

Demand for regulatory and securitybased profiles remained high throughout 2016, and we see that continuing to be the case going into 2017. There has been a decline in the requirements for support personnel. Niche technical skills remain in high OLOUGHLIN demand and availability of talent remains a challenge . UTIVE DIRECTOR - SWITZERLAND

The outlook of the market is cautiously optimistic and the FinTech ecosystem in Switzerland is gathering pace. There has been significantly more investment in startups within financial technology, and there is a strong talent pool available for companies looking to expand.

SWISS MARKET TRENDS Switzerland is ranked #1 in the Global Innovation Index

97%

of Swiss banks anticipate stricter regulation by 2020

71%

of Swiss banks anticipate decreases in remuneration and incentives in the banking sector

CONFIDENCE FOR THE FUTURE

75%

Switzerland is 75% OF BANKS IN ranked #1 in the SWITZERLAND EXPECT AN INCREASE Global Innovation IN THEIR OPERATING RESULT IndexOVER THE NEXT 6 - 12 MONTHS

WIPO, Cornell University and the INSEAD Business School EY Bank Barometer 2016

BA/PM SALARIES - SWITZERLAND

SALARY BANDS BA/PM PERM

Role

Low

Project Manager Bank

Med

High

120 - 160K

160 - 200K

Business Analyst (IT)

120 - 160K

125K

145 - 165K

Consultant - (BA/PM)

100 - 130K

130-150K

150 - 180K

Consultant

Max 120K

Max 180K

180 - 260K+

Senior Manager /Director) (

Partner/Head)

(

BA/PM CONTRACT Role

Low

Med

High

Business Analyst

650

750

850

Project Manager

700

800

925

Project Manager Office

450

600

800

Risk Analyst

350

450

650

Risk Manager

600

700

900

Financial Accountant/ Controller

400

575

750 All salary figures listed in CHF

INFRASTRUCTURE SALARIES - SWITZERLAND INFRASTRUCTURE - CONTRACT Role

Low

Med

High

System Support

400 - 450 CHF

450 - 550

550 - 650

Application Support

400 - 450

450 - 550

550 - 650

System Engineer

500 - 550

550 - 650

650 - 750

Devops Engineer

500 - 550

550 - 650

650 - 750

Security Engineer

550 - 600

600 - 700

700 - 800

Network Engineer

500 - 550

600 - 700

700 - 800

Storage and Backup

500 - 550

550 - 650

650 - 750

Service Delivery Manager

N/A

650 - 750

750 - 850

Incident/Change/Problem Manager

N/A

650 - 750

750 - 850

INFRASTRUCTURE SALARIES - SWITZERLAND INFRASTRUCTURE - PERM Role

Low

Med

High

System Support

80'000 90'000

90'000 100'000

100'000 115'000

Application Support

80'000 90'000

90'000 100'000

100'000 115'000

100'000

100'000 110'000

110'000 120'000

Devops Engineer

100'000

100'000 115'000

115'000 130'000

Security Engineer

100'000 105'000

105'000 120'000

120'000 130'000

Network Engineer

100'000 105'000

105'000 120'000

120'000 130'000

100'000

100'000 110'000

110'000 120'000

N/A

120'000 130'000

130'000 150'000

N/A

120'000 130'000

130'000 140'000

System Engineer

Storage and Backup Service Delivery Manager Incident/Change/ Problem Manager

SINGAPORE

SINGAPORE - MARKET TRENDS Innovation and Fintech have dominated the financial services industry, particularly in the latter part of 2016 which culminated with the Singapore FinTech Festival in November. More traditionally, Investment Banks have been recruiting candidates within Compliance, Risk and Regulatory Reporting. This follows the trend of previous years, however a new area of growth appears to be Cyber Security. Globally this is becoming a key focus for financial services but specifically in Singapore there is a focus to build expert teams that can not only service APAC but the organization globally.

SAM THORLEY ASSOCIATE DIRECTOR - SINGAPORE

Director of Nicoll Curtin's Singapore division, providing highly skilled technical and change resource to the financial sector.

The Core Singapore Agenda is at the forefront of most Clients' hiring strategy due to the required Quotas from the MOM. From a development perspective Java is the most in demand, but as with any location, it follows an organisation’s decision as to whether they are primarily Microsoft or non-Microsoft. The Digitalisation of Banks will continue to drive a volume of hires in the market, particularly in Retail with newer initiatives such as Video Banking. There will be continual investment to deliver the Regulatory initiatives such as Mifid 2, IFRS 9 & BCBS with the former presenting potentially the biggest, far reaching change to the trading industry in recent years.

SINGAPORE MARKET TRENDS

S$225m

commited by government to support the creation of an innovation ecosystem

67%

of financial institutions in Singapore recognise the importance of Blockchain technology

69%

of financial institutions in Singapore see regulatory uncertainty as the top risk of collaborating with FinTechs

#1 FINTECH HUB? SINGAPORE AND LONDON ARE TIED AS THE NUMBER ONE GLOBAL FINTECH HUBS, ACCORDING TO A REPORT BY DELOITTE, WHICH BASED ITS ANALYSIS ON THE GLOBAL INNOVATION INDEX; THE GLOBAL FINANCIAL CENTRE INDEX; AND THE DOING BUSINESS INDEX.

PwC Global FinTech Survey 2016

SALARIES - SINGAPORE Role

Low

Med

High

Business Analyst

90'000

135'000

180,000

Project Manager

120'000

160'000

200'000

Developers

70,000

115'000

160'000

Development Manager

150'000

200'000

250'000

Programme Manager

150'000

225'000

300'000

SALARY BANDS D/MD - $230K+ VP - $150K – 230K AVP - $100K – 150K All salaries figures listed in SGD

AWARD-WINNING GLOBAL FINTECH & CHANGE RECRUITMENT AGENCY

BE OUTSTANDING

SINCE 1999 CLIENTS

We connect outstanding talent with industry-leading companies. And we aim to be the best at what we do – 9 out of 10 of our candidates recommend us. Since we started in 1999, we’ve always put people first. That’s why we win awards for customer experience, contractor care and client service. We do more than understand the industry, we understand your aspirations. And we love what we do, that’s why we’re ranked in the 100 Best Companies to Work For.

CONTACT US United Kingdom 155 Fenchurch Street, London. EC3M 6AL +44 (0)20 7397 0110 Switzerland Seidengasse 13, 8001. Zürich Switzerland. +41 44 578 53 20 Singapore 24 Raffles Place, 25-03 Clifford Centre, Singapore 048621 +6631 2703 www.nicollcurtin.com