[ I N - D E P T H
|
P E O P L E
M O V E S ]
for the exit doors in 2020. For different
reasons, we are amid a mass exodus. In a
reshuffle of Maslow’s 1943 hierarchy of
needs, new 21st century factors have be-
come critical to an individual’s happiness
and contentment at work – such as the
ability to really make a difference either
internally or externally, the possibility of
completely switching functions within
an organisation and the ability to work
remotely when needed. Four years ago,
Global Custodian wrote about how these
traits - often associated with millennials
or Gen Z - were hindering the search for
new tech and data talent out of universi-
ties, but now this has extended to the Gen
X at the helm of business divisions. At
the same time as these trends
are evolving within custodi-
ans, opportunities are arising
elsewhere.
This feature provides a
collection of stories and views
from those who have left
custodian banks to join Fin-
Techs, digital asset start-ups,
or to go-it alone and why they
believe others might have one
foot out of the door. The aim is
certainly not to deliver a damn-
ing indictment on the custody
industry, but more to speak to
some of those who have left
these major organisations and
highlight the cultural differ-
ences and opportunities which
drew them away.
“There is a monstrously large
number of people who are
ready to leave the industry,”
says Barnaby Nelson, found-
er of the ValueExchange and
Standard Chartered’s former
securities services lead for
North Asia and Greater China.
“I was transparent when I left
Standard Chartered, I said it was the last
banking job I was ever going to do.
“you're personally liable for the mis-
takes, with limited upside to doing your
job well. So, people inevitably get to the
moment where they are contemplating
whether they want long-term security
and the salary, or a better quality of life.
And I don’t think it’s just the millennials
that are looking at this.”
sector has historically rewarded its em-
ployees with salary levels seldom found in
other sectors. This would compensate for
any hard or monotonous work, and fend
off competition in the talent war with
promises of an early retirement and a
place in Florida. Alas, it’s 2020, not 1920,
and people are placing much more value
on self-actualisation, mental health and
whatever they deem to personally repre-
sent a work-life balance.
To stem the flow, banking profession-
als trading in their name passes at the
world’s largest banking organisations for
WeWorks and start-up hubs across the
world, custodians are having to explore
what they can – and are able – to do out-
“Someone can
turn up and
say ‘we’re not
regulated why
don’t you come
and change the
world?’.”
Rise of the FinTechs
If we take a step back in time, the por-
trayed nose-to-the-grindstone banking
44
Global Custodian
Spring 2020
nancial crisis effects were amplified by
a tidal wave of regulation and squeezed
margins. While the talent drain was once
confined to losing staff or prospective
employees to the likes of Google, Apple
or any other of Silicon Valley’s finest, this
has now extended to start-ups and nimble
financial technology providers, blissfully
free of restrictive legacies, burdensome
regulation and hierarchical constraints.
“Many banks have analysed the poten-
tial of tech start-ups and tech incumbents
moving into the financial services space
and reality is here,” explains Hu Liang,
co-founder and CEO of Omniex, a front-
to-back office solution for cryptocur-
rencies, and the former founder of State
Street’s Emerging Technologies
Centre. “I think many people
simply feel the large, more tradi-
tional firms are not as innovative
and moving at a slower pace.
This is true both by practice and
by design. FinTech firms can
innovate more and crypto firms
have the opportunity to trans-
form financial infrastructure and
create a new asset class at the
same time. That is exciting.”
A digital asset future
Liang is an example of a techie
who joined the world of banking
before “returning to his roots” as
he puts it. The cryptocurrency
and digital asset world is a rela-
tively new outage to the entre-
preneurs and innovations from
the traditional capital markets
BARNABY NELSON, FOUNDER, THE VALUE EXCHANGE
where an opportunity to create
something to rival fiat currency
occurred, but really required
financial markets expertise to
thrive.
“I always wanted to take what
I learned in finance and apply
side of financial compensation to appease
it more directly in tech. I hope to make
their staff.
a bigger difference on the industry by
“It used to be that you were making a
having the independence to create and
deal with the devil, but it paid the bills, as
innovate. We need to also understand that
banks paid better than anyone else,” adds
it's not a us (FinTech start-ups) versus
Nelson. “But that isn’t the case anymore.
them (traditional finance) situation. More
Now, someone can turn up and say ‘we’re
than anyone, I've spent most of my life
not regulated why don’t you come and
between the two and have recognised the
change the world? You can wear jeans
pros and cons of each side. Leaving the
and a t-shirt, and you can do it from home safety of established firms for new Fin-
or a beach’.”
Tech and crypto firms isn't for everyone.”
The FinTech and digital asset boom
Subsequently, custodian banks have not
has come at a tough time for the world’s
ignored digital assets and are dabbling in
custody banking sector, for the post-fi-
the conversation with an air of caution.