Summary: As the financial services market experiences an upswing after the pandemic, it’s important to factor in people and technology equally for long-term success. That means rethinking your company's employee value proposition (EVP) to welcome innovation, diversity and the operationalization of technology to its fullest extent. Research shows offering work-life balance increases productivity and encourages employees to stay longer at companies. Career development opportunities are also at the top of candidates’ lists and should be at the top of organizations’ lists as a means to drive digital transformation. Companies not offering these perks are quickly falling behind and losing top players to other more flexible companies in the space.
This year, the global financial services market is expected to grow about 11%. There’s plenty of optimism and projected expansion, with the most enterprise value transactions exceeding $500 million since the prior financial crisis dating back to 1998. Activity is trending upward coming out of the pandemic, and Deloitte’s survey results indicate “72% of banks undertook restructuring initiatives,” with majority of banking and capital markets (B&CM) intending to consider it in the near future. The reason? Not cost cutting. Rather, the need for digital transformation.
It’s clear consumer preference toward digitizing services is playing a role in firms achieving success. Financial services echo many of the same woes as other industries — specifically, with blurred lines between banks and the use of financial technology (fintech) to deliver solutions. These rapid changes have ushered in a need for product innovation and changed the way we do business. No amount of technology will change that a loan is a loan is a loan, after all. But to overcome challenges as an industry, financial services demands a different way of thinking and operationalizing technology to see returns and satisfy consumer needs.
To address talent challenges intentionally, you must pinpoint pressing talent challenges and hire roles that will augment your financial product offering in an innovative and forward-thinking way. To move forward, you must hire forward-thinking people.
The challenge of crippling skills shortages comes as little surprise to those in the financial industry. There are more open job roles out there than people qualified to fill them. This widening gap in financial services has multiple contributory reasons:
The continued evolution and involvement of fintech brings a desperate need for qualified professionals in financial services who can leverage technology in the most effective way. Traditionally, processes with banks, financial services and insurance companies have been kept under lock and key, with specific hours, skills and certifications required.
In light of these shortages, it’s important to examine what talent strategy — including changes in schedules and total rewards — are needed to address and make impactful change around your people.
Investing in the next generation of the workforce is a surefire way to overcome skills shortages. This is part of a larger, total talent approach toward closing the gap in your workforce and filling talent pipelines for the long term. Explore partnership and internship opportunities with local universities and institutions to teach the skillsets needed for your roles. Whether remote, hybrid or in-person programs, jobseekers are interested in employers with strong cultures that are invested in candidates’ personal and professional lives.