Phryne Williams, CEO of Capital Assignments

Against the backdrop of unending global economic and geo-political turmoil, the South African financial sector faces significant localised challenges. Asset Management firms have spent most of 2025 navigating the country’s modest economic growth as well as the significant demands from evolving regulatory frameworks, and ongoing investor demand for more innovative products.

Without a meaningful economic upswing, the domestic investment industry remains under pressures – which are expected to carry forward into 2026. Phryne Williams, CEO of Capital Assignments, an executive search firm exclusively serving the South African financial services industry says, “For CEOs and COOs, it’s an opportunity to delve into sharpening the saw internally, to not just build resilience but foster the kind of adaptability that future-proof organisations must have for sustainable success in these fast-changing times. As we see it, there are three clear challenges to meet, not just for shoring up defences but to position firms optimally for what is still to come.”

1.     Leadership and talent retention challenges

Asset managers face significant pressure to attract, develop, and retain top talent, especially leaders.  With more than 30 years’ experience in finding and placing leaders in investment management and financial services, Phryne has a frontline view when it comes to hiring practices. She says, “Firms must realise that the hiring process is a proxy for how the firm runs. Slow cycles, moving goalposts and long messy interview processes can cost you the person you really wanted. The fix here is simple. Lock in the brief. Share the outcomes, the benefits of the role and clear deliverables, not just a job description. Educated, experienced candidates don’t move based on a job spec. Furthermore, book the panel and stick to it. Give the candidate timely feedback and make sure you manage expectations by giving the candidate a clear guideline around when they can expect feedback. Two to three weeks from the final round to offer is reasonable when you are hiring at leadership level. Companies should show respect for senior candidates by valuing their time, communicating openly, and running a process that reflects the same level of professionalism they’d expect from those candidates. Confidentiality, punctuality, and honest communication go a long way. And if there’s any uncertainty about the role, it’s better to pause the process until everything is clear and fully supported.”

When it comes to attracting new leaders, a lot of emphasis is placed on high salary packages, but Phryne says she sees a keen interest in pay that builds wealth, not just cash. She says, “Of course, the total guaranteed package matters but so often, we see that it’s a blend of that with short- and long-term incentives that closes a deal. So often, leadership candidates are looking for alignment and the opportunities to build wealth over time. One CEO told me he accepted a slightly lower base because the LTI was clear and although challenging he was determined to achieve it. He could see a three-year path to a meaningful outcome for him and the business. That is what you need to offer as part of your attraction strategy.”

2.     Regulatory and compliance pressures

The South African financial services industry operates under increasing regulatory scrutiny from bodies such as the Financial Sector Conduct Authority (FSCA) and the Prudential Authority (PA). Crucially, these companies must also meet Broad-Based Black Economic Empowerment (B-BBEE) requirements, demonstrating meaningful transformation in ownership, management control, skills development, and procurement.

Phryne says, “Financial services companies make real progress where leadership treats inclusion as year-round work. This means that they set clear targets for leadership composition and report against them. They also invest in practical development for women and black professionals in decision-making roles. Senior sponsors open doors, place people in stretch mandates, and back them in visible forums. Hiring and promotion criteria are clear, and handovers are planned so new leaders can deliver quickly.”

Financial sector organisations may struggle if diversity sits at the entry level or is stalled at the point of authority. Opaque criteria, weak sponsorship, and ad hoc succession planning slow advancement and increase attrition. Phryne adds, “What would change this is if leadership is building the bench early, sponsoring talent into real accountability, and making promotions transparent. This is how leadership teams start to reflect their firm’s stated transformation goals.”

3.     The trials of digital transformation

It doesn’t matter what industry you are in, everyone is competing for talent, building high-performance teams, and focusing on upskilling and change management to keep up with digital transformation. It’s changing the financial services industry, creating more competition for digital talent and pushing companies to find new ways to build and manage their teams.”.

Phryne says, “What has emerged over the past decade is how important it is that digital transformation in financial services is embedded in the leadership mandate. It highlights how mission-critical it is to have leaders who are attuned to digital innovation. Firms have to be robust in dealing with a range of challenges from data protection, compliance, and outsourcing risks to developing talent through mixed learning, reskilling programmes, and making sure AI and new technologies are used responsibly in the workplace.”

She concludes, “These three challenges mark a lasting shift in what effective leadership looks like in South Africa’s financial services sector. Global markets are unlikely to settle any time soon, and the industry will need leaders with a wider range of strengths to steer their organisations through the turbulence and into a stronger future.”