Understanding the Complexities of Recruiting and Retaining Talent
July 1, 2024
By Myra Thomas
The secured finance industry is feeling the strain as the industry ages and its most experienced executives retire. Here, SFNet members offer their points of view on the challenge.
It is not new news. The financial services industry continues to face a growing talent shortage. The result—job openings are rapidly rising. From March 2023 to February 2024, the Bureau of Labor Statistics reported job openings in finance and insurance increased from 502,000 to 677,000. Secured lenders are certainly feeling the pinch. Asset-based lenders and factors are well aware of the talent crunch and the resulting greying of the industry. The challenge is a complex one, with many underlying factors impacting recruiting. Many experts note that, primarily, secured lenders need to do a better job of increasing the profile of the industry to attract and retain younger talent.
Active recruiting on college campuses is the first step, of course. Laura Glass, senior vice president and senior portfolio manager for Bank of America Business Capital, notes that asset-based lenders and factors must commit to more educational campus visits. “When looking at college campuses, they aren’t teaching about asset-based lending, but they do cover investment banking, for instance,” she says. Many finance and economics majors simply are not aware of the opportunities in secured lending. “I personally enjoy working in secured lending, and our clients have a level of need and expertise where they view us as their financial partner and care about what we have to say,” she adds. Glass notes that the attraction of secured lending is that it remains a hands-on field, where lender and client get to form long-lasting business relationships.
The Secured Finance Foundation recognized this gap at the college level and created a Guest Lecture Program. SFNet CEO, Rich Gumbrecht said, “The Guest Lecture Program was created in 2019 to introduce asset-based lending, factoring and other secured lending disciplines to students, as a way to educate and encourage younger and more diverse talent to enter the secured fi nance industry.” In support of this lecture series, the Secured Finance Foundation connects industry leaders to undergraduate and graduate fi nance students. Each Guest Lecture is led by individuals employed by SFNet members, providing students with a high-level look at secured finance as an industry and a career path.
SFNet has also published a “Great Places to Work” issue of The Secured Lender since 2022. “All SFNet member companies are encouraged to send us a profile of their organization highlighting their business focus, benefits and culture. The issue is sent to about 40 colleges and law schools around the country to expand students’ knowledge of our industry as a possible career,” said Michele Ocejo, director of communications for SFNet.
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It is not new news. The financial services industry continues to face a growing talent shortage. The result—job openings are rapidly rising. From March 2023 to February 2024, the Bureau of Labor Statistics reported job openings in finance and insurance increased from 502,000 to 677,000. Secured lenders are certainly feeling the pinch. Asset-based lenders and factors are well aware of the talent crunch and the resulting greying of the industry. The challenge is a complex one, with many underlying factors impacting recruiting. Many experts note that, primarily, secured lenders need to do a better job of increasing the profile of the industry to attract and retain younger talent.
Active recruiting on college campuses is the first step, of course. Laura Glass, senior vice president and senior portfolio manager for Bank of America Business Capital, notes that asset-based lenders and factors must commit to more educational campus visits. “When looking at college campuses, they aren’t teaching about asset-based lending, but they do cover investment banking, for instance,” she says. Many finance and economics majors simply are not aware of the opportunities in secured lending. “I personally enjoy working in secured lending, and our clients have a level of need and expertise where they view us as their financial partner and care about what we have to say,” she adds. Glass notes that the attraction of secured lending is that it remains a hands-on field, where lender and client get to form long-lasting business relationships.
The Secured Finance Foundation recognized this gap at the college level and created a Guest Lecture Program. SFNet CEO, Rich Gumbrecht said, “The Guest Lecture Program was created in 2019 to introduce asset-based lending, factoring and other secured lending disciplines to students, as a way to educate and encourage younger and more diverse talent to enter the secured fi nance industry.” In support of this lecture series, the Secured Finance Foundation connects industry leaders to undergraduate and graduate fi nance students. Each Guest Lecture is led by individuals employed by SFNet members, providing students with a high-level look at secured finance as an industry and a career path.
SFNet has also published a “Great Places to Work” issue of The Secured Lender since 2022. “All SFNet member companies are encouraged to send us a profile of their organization highlighting their business focus, benefits and culture. The issue is sent to about 40 colleges and law schools around the country to expand students’ knowledge of our industry as a possible career,” said Michele Ocejo, director of communications for SFNet.
Click here to continue reading the article.
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