Banks, hedge funds boost pay to win Japan grads

In Japan, banks, hedge funds and asset managers are increasing starting salaries, expanding campus recruiting and creating specialist early-career tracks to attract top university graduates.

The Ministry of Health, Labour and Welfare reported about 98% employment for students graduating in March 2026. Around 600,000 students complete undergraduate programmes each year. Career-tasu data show undergraduates received an average of about 2.4 job offers before graduation, compared with about 0.79 offers for U.S. bachelor’s degree graduates in a separate survey.

Recruit Works Institute estimates roughly five applicants for every finance-sector graduate position this year, the highest competition among the eight industries it tracks. The institute expects finance-sector openings for students graduating in March 2027 to rise by more than 10% to about 10,400 roles.

Starting salaries in Japan’s finance and insurance sector rose 7.4% in the current fiscal year, the largest increase among tracked industries; more than two-thirds of financial companies surveyed reported raising pay. Firms that have boosted starting compensation include Mitsubishi UFJ Morgan Stanley Securities, Daiwa Securities Group and the brokerage arm of Sumitomo Mitsui Financial Group.

Some companies are offering higher pay for candidates with quantitative and technical skills. Daiwa’s specialist “expert course” carries a minimum monthly starting salary of JPY500,000 for hires with advanced data analysis, programming, mathematics or science and technology skills. The brokerage plans a further pay increase next fiscal year and offers interest-free student-loan repayment beginning in an employee’s sixth year. Sumitomo Mitsui Banking Corp has introduced 11 recruitment tracks covering areas such as global banking and retail; employees in the global banking track may take overseas assignments after initial training in Japan.

Foreign banks and asset managers are also active on campuses. Bank of America runs a large campus recruitment programme in Japan and requires graduate hires to be bilingual. Citigroup reports recruiting between 20 and 30 new graduates annually in Japan since 2020 and states that artificial intelligence has not altered its approach to entry-level hiring.

Hedge funds and investment managers have increased campus presence and early-career schemes as the local investment-management industry grows. Point72 selected about 20 candidates from roughly 300 applications for a one-week workplace programme in Tokyo this year. Since launching talent-development initiatives in Japan in 2017, Point72 has hired seven associates, two of whom later became portfolio managers.

Recruiters point to expanding activity in private equity, private credit and real estate as additional drivers of hiring across asset management. Fuyuki Samejima, director covering financial services and consulting at recruiter Robert Walters Japan, noted that these areas are contributing to recruitment demand.

Employers cite stronger market activity and dealmaking as reasons for raising intake, while demographic trends are limiting the supply of new workers. Companies are using campus outreach, specialist training tracks, higher entry pay and extra benefits to attract graduates to finance roles.