According to the World Economic Forum, 20% of all financial services jobs could become redundant.

According to the Australian Industry and Skills Committee, employment in the finance and wealth management industry is forecasted to increase by 6% from 2022 to 2025 in Australia. However, businesses will increasingly face challenges in acquiring emotionally intelligent, curious, and perceptive people over the next decade.

The aging population and the rise of FinTech are changing the industry’s landscape. Both are responsible for changing customer demands and introducing new systems. In addition, COVID-19 fast-tracked the implementation of technology.

Financial and wealth management businesses should assess their skills and consider the challenges that lie ahead.​

How will the aging population and FinTech influence skill demands?

The aging population

The demand for professional advice on superannuation and financial planning is expected to grow as more individuals seek advice on their retirement. Due to the aging population, superannuation assets in retirement are also expected to increase. There is also an increased demand for self-managed superannuation funds (SMSFs).

Evidence suggests that, among those who are close to or have retired, a strong motivator for seeking professional financial advice is to grow post-retirement wealth.

There will be a greater need for more professionals in this field and for more professionals who understand the emotional and psychological stressors of retirement. These professionals must also understand the needs of retirees.

Strong demand for property also suggests the need for mortgage brokers.

FinTech and other technology advances in the industry

Some will lose their jobs because of significant technological advances, but others will find rewards when they embrace it.

Emerging competitors in the market who embrace technology force current businesses to change their business models.

New technology introduced in the finance and wealth management industry has focused on giving consumers more knowledge and greater control over their finances. This allows for greater data collection, which introduces more risk in managing and controlling that data. Regarding this, data management and protection skills are and will increasingly be of high value.

Businesses may already see changes in some process-oriented roles. Many roles performed by graduates, such as administration roles, will likely become automated within the next ten years.

Businesses should focus on skills that allow their talent to adapt to the ever-changing, technology-driven environment easily.

What skills will be in high demand, and which should be prioritised?

Skills that are harder to automate, like interpersonal and cognitive skills, will be highly valuable in a technology-driven environment.

The Australian Industry and Skills Committee strongly suggests that businesses should prioritise the following skills in the finance and wealth management industry:

• Health and safety
• Teamwork and communication
• Problem-solving
• Industry-specific technical skills
• Core financial multidisciplinary skills
• Customer service
• Marketing
• Digital mindset
• Critical thinking
• Systems thinking
• Learning agility
• Information literacy
• Intellectual autonomy
• Self-management (adaptability)
• Data analysis
• Other fundamental financial skills

Skills that will be in high demand include:

• Communication skills
• Building effective relationships
• Planning
• Problem-solving
• Detail orientation
• Compliance and risk management
• Ethical service

It should also be noted that as technology weaves its way into the industry, employees should be expected to understand not code but the logic and algorithms that affect their customers.

Due to the potential automation of many entry-level roles, graduates should possess flexibility and resilience.

How can businesses adopt these skills?

Developing and improving employee value propositions should be at the heart of most business strategies.

Implement skills training

Step one is to implement skills training focusing on the abovementioned skills. According to PwC’s 24th Annual Global CEO Survey, 35% of financial services CEOs said they are focusing on the skills and adaptability of their people. 24% saw improvements in digital transformation and greater innovation due to upskilling. As you may remember from our previous posts, employees feel valued. They are less likely to leave their organisation if their employer invests in their learning and development and when they can project career growth within their company.

Before implementing anything, employers should assess their business models and processes. Businesses should note the skills that have been made redundant due to the technology they have implemented and the skills they now require to use this new technology to its fullest capacity.

Businesses should also consider implementing training that can be easily integrated into their employees’ current work patterns. This will eliminate the need for employees to set aside time in their day for learning.

It can be helpful to explore the available options by looking at different avenues for training. Businesses may wish to consult other organisations, such as the government, higher education, industry bodies, or those in other industries.

Focus on organisational culture and leadership

A report by KPMG, 20 Voices On 2030: The New Reality for Financial Services, found that employees in this industry are attracted to organisations that focus on great organizational culture and leadership.

Consider the aspects you offer your employees and determine whether they agree they are being received. If your employees believe you are not delivering what you promised or claimed, action needs to be taken to change policies or procedures to make them happen. In other words, if you claim to be an organisation that supports its employees, your employees should be able to attest to that.

When attracting new talent, it is helpful to think in the shoes of the candidates you are targeting. For example, make it known to potential candidates that you have a great organisational culture or exercise inspiring leadership by stating it in your job descriptions and being an advocate yourself when speaking to candidates in interviews. You can see more attraction strategies here.

Acting fast in a candidate short market with increasing demands for various skills is crucial. While it is not always possible to suddenly gather the resources for talent acquisition, doing so will put you ahead of your competitors with similar goals. So contact one of our specialist consultants today, and we’ll develop a solution for you to ensure your business secures the talent it needs to succeed in a technology-driven industry.