Career transition - HSBC

In less than a month time, it will be my anniversary in the bank. I joined on 28Sept 2015. To commemorate the upcoming 1st anniversary, let's do some reflection on the career transition.

Why subject it career transition, instead of career switch? Reason being i am moving to Trade Specialist role from the Relationship Manager role that i held in RHB for 5 years, however it is still within banking.

Reason for the move:
1. Pay rise -
At first glance, 35.9% jump looks worthy for the switch, however one need to discount the bonus payout, which could be banker's largest punt. It is gonna be down to 2-3 months compared to the generous 6-9 months but of course one will argue it is always performance based. But reality is Trade rarely get as much bonus as the RM. A back of envelop calculation revealed that my annual income may be 7% lower or flattish (considered 2 months bonus) in the coming year and I am happily accepting that due to reasons below.

2. Better medical coverage
My wife is expecting and with the arrival of the newborn, medical coverage is a vital consideration. In RHB, full coverage to 1st party(myself) and coverage of spouse and child is up RM6,000 per person per annum. However here it provides unlimited coverage to 1st party and dependents. On top of that, natural delivery expenses is subsidized up to RM2,500 and fully covered for cesarean. Importantly, coverage is indifferent regardless of your confirmation status.

3. Migration - Trade is the subset of RM role. In layman term, RM role i am covering everything on client's requirement from financing, cash management, FX, Trade to advisory but Trade is only a specialized field and it is all about depth. Trade is a niche field and client around the globe speaks the same language and use the same product (maybe some minor tweak to accustom to local needs).
Unlike RM role where a success is usually build on the entrenched relationship with the client, trade is a specialization which you are respected for your depth of knowledge on concepts and products. The uniform standard around the globe increased its mobility and give an opportunity for one to work in different country.

4. Product creativity - As an RM, i found trade product very creatively crafted but nobody shared the sentiment. This is contrary to the trend where most RM looked upon/preferred advisory/investment banking products, probably due to the complexity and lucrative fee income. My comprehension on trade product is it creatively combined the principle of credit into generic products for ease of client's utilization and banker's explanation.  Most banker could explain the "how" (product mechanism) but few could explain the why (underlying principle).It attracted my attention more than everything else. In terms of learning curve, which could be better than this bank which started off as a Trade bank and had been the leader for more than a century.

5. Competition - Just like how the students inspire to enter Oxford/Cambridge university, most bankers inspire to join the Investment Bank ("IB") crowd on Wall Street. Hence IB is flushed with talent and best candidate in the industry.  With the merger of IB, these best brain is coming to the RM role and share the shrinking pie.Whilst it provides a good training and steep learning curve, it may not be the place where everyone will shine.  Sun Tzu Art of War mentioned the avoidance of direct competition with a stronger competitor, but to grow stronger first and confront when you are strong enough. With that being mentioned, it is not my intention to discredit anybody or any field. There are also many talents within the Trade field.

Outcome from the move:
1. Pay rise -
Pleasant surprises with an increment, promotion and bonus, my annual income is 15% above my expectation. Initially I was not expecting the lifestyle allowance prior to my confirmation but surprisingly policy changed when i joined and i was entitled.

2. Better medical coverage
Delivery reimbursement of RM2,500 and covered dependent's medical/hospitalization expenses of circa RM50,000, besides other miscellaneous smallish medical bills

3. Migration - Main objective in my list. Historically, on average one colleague moving/migrating to overseas ie Canada, Macau and Sydney yearly. Will be perfect if i could be equipped with Certified International Trade Finance will further enhance my resume for overseas posting.

4. Product creativity - Leading the pack in terms of product offering.

5. Competition - The recognition received besides hard work, also attribute to good timing and moderate competition.

6. Work life balance - Longer working hours and transnational nature is quite taxing. However all is within expectation and i am learning to cope better.

Conclusion: I am happy with the move. Despite some downsides ie longer working hours, less supportive environment, they were all manageable. Other priorities ie Migration/medical coverage and pay rise are factors/areas which i value them more.