We’re not saying it’s going to be a great summer (or year) to be looking for work, but some job functions will at least be a bit hotter than others… 

Financial modelling

Professionals with experience developing detailed financial models are becoming more sought after, particularly within M&A, corporate finance advisory, project finance advisory, professional services, and corporate development, says Nicolas Boston, director and co-founder, Numbers Executive Recruitment. “As the flow of money continues to tighten and capital providers require more detailed and thorough analysis, a clear and concise financial model can make all the difference to the success of a transaction.”

Although the financial modellling was traditionally reserved for junior staff, there is now a trend to employ more experienced modellers who understand accounting and corporate finance principles and can accurately depict future cash flows, financial positions and project/enterprise values.

“We’re seeing demand increase – both on a temporary and permanent basis – for candidates who can guarantee the development of a financial model that is concise, robust, flexible and free from errors. Those who have been through similar transactions and know what decision makers – such as credit teams or executive committees – want can be very useful.”

Financial planning

Wealth management remains a growth sector for the deposits-focussed domestic banks, and an increasing number of financial planners have recently joined the big four. This trend will continue in the months ahead, with consistent hiring of experienced paraplanners and financial planners, says Jane McNeill, director, Hays Banking. Accounting firms and fin planning dealerships are also after these professionals, but there is a skill shortage. “We have seen planners leave the industry for business development or banking relationship manager roles. This of course impacts the availability of candidates for the rest of the industry,” adds McNeill.

Both boutiques and large firms will try to attract talent by outlining career progression opportunities, and offering competitive remuneration and flexible working packages, she says. “In addition, many organisations are offering books of business to lure experienced planners to their team. We have also seen an increase in the use of contract staff to help bridge the skills gap, particularly at the CSO and paraplanning level, so that financial planners can focus on servicing clients.”

Money laundering and compliance

New regulations will drive demand for professionals in money laundering and compliance this year, says Andrew Hanson, director of banking and financial services, Robert Walters. These include the US Foreign Account Tax Compliance Act (FATCA), which comes into force on 1 January 2013. “While it may appear that this leaves ample time for preparation, timing is actually a concern for Australian banking institutions,” adds Hanson.

The implementation of Basel III will also be important to the job market this year. “What this means for money laundering and compliance professionals is that their particular skill sets will be in demand, especially project management people and those with strong risk backgrounds. Salaries have increased over the past 12 months and are expected to continue to rise steadily as the need increases.”

Business development managers

Business banking BDMs who have the ability to grow and diversify a portfolio of existing clients, as well as attracting new ones, will continue to be in demand this year, according to Allira Salem, director, financial services, Marks Sattin. With corporate debt marginally stabilising, financial services institutions will want to increase revenues through this stream.

“There will be a focus on bankers with domestic market knowledge and networks, and some institutions are now looking at hiring seasoned sales professionals and training them in banking products, which can sometimes prove easier than training a banker how to sell,” says Salem.

Many institutions are structuring teams to have a BDM and a technical specialist who will attend client meetings in order to maximise the portfolio value, she adds. BDMs no longer need to have in-depth product knowledge, but do require the skills to identify and develop businesses and relationships.

Comprehensive credit reporting

The proposed new comprehensive credit reporting (CCR) regime aims to emulate the standard that the US has used for nearly two decades. “Once this is fully phased in, over the next two to three years, most Australian lenders will be reporting on close to ten times the amount of data they are currently,” says Toby Aikins, client advisor, Marshall McAdam.

CCR, which has yet to be finalised, is a voluntary and reciprocal piece of legislation, so lenders must report on more data if they want access to real-time information from other institutions. “The main question will be what to do with the extra data and how to use it to make better lending decisions. Significant career opportunities and corresponding upward salary pressure will exist in both quantitative risk management and also strategic model design and development,” adds Aikins.