China's Senior Bankers Jump Ship in Search of Higher Pay in Internet Finance Sector
Yicai Global
/SOURCE : Yicai
China's Senior Bankers Jump Ship in Search of Higher Pay in Internet Finance Sector

(Yicai Global) July 21 -- It is becoming easier for well-funded Internet finance companies, private banks and reputable peer-to-peer lenders to poach talent from the world of banking, including those in high positions.

The departures are due to significant salary cuts for some senior bank executives in line with pay restrictions at state-owned lenders and heavy investment by Internet finance companies, private banks and other new institutions to lure talent.

One recruitment agency said the number of executives looking for new opportunities has jumped from last year particularly among general managers at risk control departments and public business divisions, vice presidents at branches of large and medium-sized banks, as well as other similar-level staff.

Those interviewed about the matter said well-known Internet firms, excellent and well-funded P2P platforms, and private banks have become the job-hopping destinations for star senior executives. Many large Internet companies have attracted senior bank executives with cash plus stock rights or equity options.

Several who have jumped ship agree that "cultural differences" between the two financial sectors make a lot of senior bank executives uncomfortable. Some do not achieve the expected success in their new positions because of policies or regulations that prove to be barriers, so it may take the two sides a long time to adjust to one another.

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