South Africa’s sophisticated, intensely competitive merchant banking sector should rise to the challenge of transformation despite the obstacles presented by the lack of skills that has traditionally characterised the business.
So says Buhle Ngcobo, who has just been appointed to the post of Head of Transformation at Rand Merchant Bank (RMB).
“Far from being a drawback, the shortage of skills in this sector — particularly in accountancy, financial mathematics and actuarial science — can provide a powerful incentive for merchant banks to accelerate the development of previously disadvantaged persons,” says Ngcobo.
While acknowledging that meaningful transformation will only truly happen once high schools and universities overcome the structural legacies of the past and start turning out more maths and science graduates, she says there is a lot that merchant banks can do right now.
“Mentoring, internships, fast-track career paths — these are all practical methods
for merchant banks to maximise opportunity and potential in the existing skills-
starved environment.”
RMB is making headway with such initiatives. The bank uses its staff to teach financially related subjects at schools and universities, runs a Quant Internship Programme for university students who have studied financial mathematics, and this year started a trainee dealership programme. In all of these initiatives, the emphasis is on attracting candidates from previously disadvantaged backgrounds.
The transformation of the merchant banking sector will be a long-term process,
says Ngcobo, which is all the more reason why merchant banks should throw their weight behind it as soon as possible. They don’t have to wait for the Financial Services Charter before getting serious.
“Transformation can be made to work with the right attitude and support, and RMB
has already shown by the progress accomplished so far that it has both of these
qualities,” she said. – I-Net Bridge