The recruiting and retention landscape in commercial finance is increasingly becoming a “War for Talent,” according to speakers who explored that topic and much more at SFNet’s 79^th Annual Convention in Orlando, FL. Finding and keeping a quality workforce is of utmost importance these days as companies navigate the post-pandemic economy.

Also on the agenda was “AI and the Future of Secured Finance,” which featured a panel of experts who discussed industry trends in artificial intelligence including its anticipated impact on employment. It’s a hot topic in the world of finance as companies look to reduce operational “friction” and function better, faster and smarter.

The Convention, which took place Nov. 15-17, offered attendees 12 networking events and an impressive lineup of 73 speakers in 14 panel sessions and 17 roundtable discussions.

The “War for Talent” panelists said they have seen a shift in motivators for many employees, particularly the younger generation. Whereas compensation and a benefits package were once their prime concerns, modern job-seekers place a strong emphasis on a company’s culture and a sensitivity to work-life balance.

Presenters were Nneoma Maduike of Otterbourg P.C. (moderator), Lin Chua of InterNex Capital, Doug Jung of Hilco Global and Don Cavanagh of TD Bank. They said the shift in mindset may be attributed in part to the COVID-19 pandemic, which forced many people out of traditional offices and into remote and hybrid work models.

“COVID has changed the world obviously, but there is no fundamental change in the skill sets that are needed in a professional organization,” one panelist noted. “The changes that occurred with the pandemic just made it harder to find those skill sets. So, the interviewing process, the onboarding process, have to be that much more robust.”

Culture is a broad term that encompasses such things as teamwork, connectivity, communication, training and a willingness to embrace diversity in the fullest sense, according to the convention speakers. They added that asset-based lending “is not the sexiest industry” for a generation influenced by social media, and expectations are changing as to what success means.

Professional development is paramount. Today’s workers must be growing and learning by gradually handling more complex technical or analytical matters. They need to engage with clients and other professionals and be intellectually challenged.

The panelists see increased focus on the “human element.” They urged business owners and management to keep their workforce inspired. Savvy companies looking to retain talented people will position them for success through leadership and personality assessments and other tools such as “organic mentors,” internal buddy systems or dedicated performance managers.    

A constant threat is the “poaching’ of employees by industry competitors. “Show you care about the person and what matters to them. Work with their interests,” one panelist said. Another speaker, meanwhile, promotes a collaborative workplace by only using “team member” instead of “employee,” adding, “You’re only as good as your team.”

 AI and the Future of Secured Finance

The above-titled panel session, meanwhile, addressed opportunities and risks associated with artificial intelligence, which was defined this way: A variety of computational capabilities enabling machines to perform cognitive functions on large data sets at high speed.

AI is sure to have an impact on employment in the secured finance industry. But how much of an impact remains to be seen. A graphic presented during the discussion listed AI “superpowers” as learning/adapting, predicting, analyzing, automating, decision making, creating and coding. Indeed, by automating certain work tasks – customer care, for example -- the so-called generative AI could dramatically increase productivity by absorbing a hefty percentage of employees’ time. 

“Think about what that could mean to your bottom line, to productivity, to the ability to grow your company,” one panelist said.

Speakers included Deborah Reuben of TomorrowZone (moderator), Matt Noll of Ernst & Young, Ryan Jaskiewicz of 12five Capital, Eldon Richards of Solifi and Daniel Barsky of Holland & Knight.

They said the true power comes from the scale and the possibility of AI-enabled applications. Just imagine the possibilities, they added, pointing to this as backdrop: The website There’s An App for That reports that more than 9,000 AI apps currently are available for over 2,000 tasks. The challenge, then, is identifying the possibilities for you and your company.

“Get into the game with AI,” the audience was urged. “Think about the possibilities, the technology, the innovations. How does it apply to you? What does it mean for your business?”

If you aren’t educated about AI and have yet to experiment, it is time, the panelists advised. Don’t stand still. Learn, experiment, brainstorm. Examine your company and processes to see where you can leverage automation to achieve new things.

But be cautious, they said. The technology is moving faster than expected and there’s still uncertainty and challenges related to accuracy and fake data. AI-enabled applications can speed things up – including scams and fraudulent activity. Indeed, as good as AI is for those who legitimately utilize it, it’s just as good for those attempting nefarious activity. “This is something our entire industry has to address,” one panelist noted.

One of the points made during the discussion was that AI is now available to the general public. It’s not just for big companies with deep pockets and data scientists. And while a big worry out there is that AI will replace humans, the panel offered a twist: Humans who use AI will replace humans.

In the finance industry, there are a variety of use cases. They include process automation, credit risk models, fraud prevention, portfolio analysis and matching credits with funders.

The biggest takeaway from the discussion was simple: Get started. Depending on your technological comfort level, take the first step by carefully experimenting with AI or hire an outside vendor or consultant to start implementing this into your business operation.

The Convention Experience

The SFNet Annual Convention received overwhelmingly positive feedback from attendees, who praised the event for its insightful sessions, engaging speakers, and valuable networking opportunities. The SFNet Annual Convention offers an inclusive and collaborative environment that encourages meaningful discussions and knowledge exchange.

Sydnee Breuer, EVP, Western Region Manager, Rosenthal & Rosenthal of California, said: “The Annual SFNet Conference in Orlando was top notch!  It was a great venue with informative and timely panel discussions.  It’s a great place to reconnect with old colleagues and friends as well as make new industry contacts.  I am already looking forward to next year’s Convention in Houston.”

Jonathan Leopold, VP & General Manager, Single Point Capital, added: “The Convention offered a diverse range of insightful sessions, engaging keynote speakers, and networking opportunities that exceeded all expectations. My experience at the annual convention was exceptional, and I highly recommend attendance next year to any finance professional.”

Penny E. Zacharias, Partner, McGuireWoods LLP, commented: “A general takeaway from the Convention was one of collaboration and the genuine desire to find opportunities to work with one another.  In a year that was described as choppy, there remains an appetite for deals, even if they are taking longer to find, negotiate and execute.  The Convention remains an excellent way to deepen existing relationships and meet new colleagues.

First-time sponsor, Tom Desmond, Managing Partner, New England Consulting Partners, LLC said, “I have to say that I was very impressed with how the Secured Finance Network ran its 79^th Annual Convention last month in Orlando.  I also attended their Convention held at the Fontainebleau in Miami some years back; I was equally impressed.  I have been in the turnaround business for approximately 25 years and have worked with several event planning and convention planning companies.  I can attest that the logistics and execution of such events is very complicated: especially if you are catering to a discerning crowd.

Our firm (New England Consulting Partners LLC) sponsored the tennis tournament, so I had the occasion to work with the SFNet staff very closely.  From customer service to following up on the smallest details they executed flawlessly. The entertainment and networking opportunities made it worth every penny.   Most importantly, the food was great! See everyone next year in Houston!”

If you missed the Convention, SFNet members can still access 6 recorded panels until the end of the year: Member OnDemand (swapcard.com)

Mark your calendars for the SFNet 80^th Annual Convention in Houston, November 13-15, 2024.