Hong Kong Banks Warned of Talent Shortage by 2030
Hong Kong’s banking industry is facing a serious shortfall in skilled professionals specializing in artificial intelligence (AI), green finance, and regional market expertise, according to a new study spearheaded by the Hong Kong Monetary Authority (HKMA). The findings suggest that unless significant training efforts are made, the talent pool will be insufficient to meet future demands by the end of this decade.
Arthur Yuen Kwok-hang, Deputy Chief Executive of the HKMA, emphasized the urgency of the situation during a press briefing on Friday. He urged financial institutions to focus on employee training rather than engaging in salary wars to attract skilled personnel from rival banks. “We want to see local banks provide more training for their staff to upgrade their knowledge and skills,” said Yuen. “This approach is more sustainable than competing for talent through higher pay.”
Survey Highlights Challenges and Opportunities
The report, titled Capacity Building for Future Banking 2026-2030, is the result of a comprehensive survey conducted in the first quarter of the year. It involved 147 banking institutions and was jointly organized by the HKMA, the Hong Kong Association of Banks (HKAB), and the Hong Kong Institute of Bankers (HKIB).
The survey revealed that 57 percent of the banks were optimistic about the business outlook for the years 2026 through 2030. They cited technological advancements and emerging opportunities, particularly in the AI and green finance sectors, as key drivers of future growth. However, 11 percent of respondents expressed concern over geopolitical uncertainties that could present significant challenges to expansion and innovation.
AI and Green Finance at the Center of Demand
The study highlighted that the most in-demand skills over the coming years will be those related to AI and green finance. As regulatory frameworks evolve and sustainability becomes a priority for investors and regulators alike, banks will need professionals who understand both the technological underpinnings and the environmental impact assessments of financial products.
“AI is not just a buzzword anymore—it’s a critical part of banking operations, from risk management to customer service,” said a senior executive at one of the participating banks. “Similarly, green finance is moving from niche to mainstream. We need people who can structure sustainable investment vehicles and assess environmental risks.”
Training Over Talent Poaching
The HKMA is encouraging banks to take a long-term view by investing in the development of their existing workforce. Yuen stressed that poaching talent from competitors is not a sustainable solution and could create a volatile labor market. Instead, institutions should build internal training programs that can help staff transition into high-demand roles.
“A robust business environment supported by a sufficiently large and skilled talent pool is essential for maintaining Hong Kong’s status as a leading international financial centre,” Yuen noted. “We are working closely with industry stakeholders to ensure the right infrastructure is in place to support this transformation.”
Regional Expertise Also in Short Supply
Beyond AI and green finance, the study also identified a shortage of professionals with expertise in the Middle East and ASEAN markets. As Hong Kong looks to deepen its financial ties with these regions, particularly in the wake of shifting global trade dynamics, understanding the regulatory, cultural, and economic nuances of these markets is becoming increasingly vital.
“There is a clear need for talent who can navigate the financial landscapes of emerging markets,” said a spokesperson from the HKIB. “This includes fluency in local regulations, languages, and business customs.”
Future Steps and Recommendations
In response to the findings, the HKMA and its partners have proposed several initiatives to address the talent gap. These include:
- Launching industry-wide training programs focused on AI and green finance.
- Creating scholarship and internship programs to attract young talent into banking.
- Partnering with universities and educational bodies to align curricula with industry needs.
- Encouraging banks to offer career pathways that promote continuous learning and development.
These measures aim to ensure that Hong Kong remains competitive and resilient amid global economic shifts.
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