Dutch Banks Leap to Fill Commodity-Trade-Finance Gap
The largest Dutch banks are positioning themselves rapidly to grab an increasingly bigger share of lending to commodity traders, moving in to take market share as competitors retreat in the face of market turbulence. The second-biggest Dutch lender – Rabobank – has already increased its profit margins from commodity trade finance by 800 percent from 2006 to 20015. ING, another leading global player, has also grown its commodity trading unit threefold over the past ten years, and it plans to continue its growth trajectory. Meanwhile, it is increasing staff numbers at its Geneva base to around 170 from 130 back in 2010 – the vast majority of which are highly skilled roles.
Implications for Search and Recruitment
But what does this mean for executive search and finance recruitment needs in the commodity trades sector? The short answer is that it is good news for those recruiters ready to capitalise on a new opportunity and positioned to offer the high-end service that these ambitious strategy moves dictate.
Opportunities for Strategic Relationships
Strategic recruiters with the capacity to deliver executive search capabilities within finance – and specifically commodity trading sectors – and the ability to recruit the highest-quality talent will have a natural lead when it comes to doing business with these huge global players.
Recruitment needs for commodity traders will naturally grow along with banking provision, but aligned recruitment will also see an increase in support functions, aligned finance functions and management. Big banks need large teams to expand their finance commodity wings and require the best, most committed talent at all levels. These banks will often be looking to poach top talent from rivals and will be seeking out extremely experienced, professional and effective recruiters to act as strategic resourcing partners for their business.
This type of recruiting is likely to involve the full mix – from cold-calling and social marketing basics through to delivery of employer branding, search and targeted networking for identified hot candidates. The full skill set will be needed from the very best finance recruiters – ideally those with existing large and powerful networks and the ability to get close to the best candidates and present a compelling case quickly.
Partnering and Positioning
Those recruiters with aligned expertise may well seek to partner up with other more strongly positioned finance recruiters to provide a full end-to-end package to banking customers. Those who can offer everything from temp-to-perm recruitment to contract roles, permanent experienced and search will be well positioned to build up a resourcing partnership with big banks. Recruiters who can also offer value-added services such as testing, background checking and assessment centre delivery will also be in a strong position and able to demonstrate their value from the start.
Big banks looking to rapidly upscale their commodity services to customers will naturally seek out finance recruitment partners who have the scale, knowledge and expertise to operate rapidly and according to their needs. Pricing is likely to be less of an issue for these demanding corporate customers, which will offer attractive incentives for ambitious recruiters keen to grow their business and expand into new markets.