Skill Set Gap: Financial Services Industry

Skill Set Gap: Financial Services Industry 1
SKILL SET GAP: FINANCIAL SERVICES INDUSTRY
By Student Name
Course Name
Name of Professor
University Name
August 26, 2018

Skill Set Gap: Financial Services Industry 2
The speculation for required and relevant employment skill set for the ever-evolving and
dynamic financial services sector has increased dramatically. Emerging technological
innovations are rapidly changing the workforce today, with high doubts about the current
employability percentage in the Financial Services Industry (FSI). (EY,) Technological
improvements and emerging innovations such as the IA and the Blockchain technology has
given rise to questions about the efficacy of the dynamic workforce and the kind of impact such
innovations could possibly have in the future of FSI. Thus, as the workforce changes and new
skills come to light, this easy discusses some crucial skills that need to be acquired and
developed for one to pursue a career in the Financial Services Industry. The report covers
essential workforce skills that may be required in the future across all FSI sectors – Banking,
Insurance, and Wholesale/Asset Management.
The future of the financial services market foresees a drastic shortage of employment and
adequate employment and skill set gap that can impact the future scenario of the industry. A
shift in consumer demand and globalization of the industry and economy is expected to set to
lower the global employment rate in FSI across all sectors (Raghuram, R. & Luigi, G., 2003). The
gap owes to the increasing difference between machine labor and human labor, driven by
automotive and artificial technologies that are expected to drive bigger transformations in the
future of financial services. The following is a summarization of the three sectors in FSI and the
kind of skills that most financial firms would like to give an upper hand in the near future.
Banking Sector
Retail and wholesale services are two segments of the banking sector, with retail banking to be
observed suffering from a huge skill gap in context with product and sector knowledge,
motivation and encouragement, and job ‘readiness’ (Bank Governance Leadership Network,
2018). Following a similar structure yet established a much-settled function, wholesale banking
requires skills that pertain to organizational roles such as relationship managers, finance
analysts, and mergers and acquisitions advisors, which require sector knowledge equally as
much as retail does. The general understanding of the sector and sharpening basic finance skills

Skill Set Gap: Financial Services Industry 3
such as quantitative abilities has led to this insufficient gap in skill sets that most financial firms
currently are looking for and which will continue to be assessed even in future. Poor
management and leadership in this particular sector have also led to a financial crisis in retail
banking services, which is expected to only become worse and create an irrevocable skill gap in
the industry (Oxford Research and ERM, 2008).
Insurance sector
The insurance sector has seen a major downfall where candidates lack basic industry and
technical knowledge of the insurance sector. Lack of skills such as risk management, IT, and
operations along with poor management skills seems to have contributed to the inability of the
insurance sector to attract the highest-qualified candidates (Employment Trends, 2016).
General improvement in efficiency is one of the strongest skill set that persists in the FSI
insurance sector currently. Strong quantitative analytic skills will also be required for insurance
firms to bridge the financial crisis gap and drive better business for life and pension insurance
organizations (EGFSN, 2007).
Asset management
Strong and stable investment and risk analysis skills is a major lookout for most financial
organizations in the future, especially those involved with asset management. Core asset
management skills required are comprehensive investment research abilities, investment
portfolio management skills, and understanding of sales and marketing functions comprise a
major picture of the employment requirements from asset management holders and
companies (PWC, 2007). This calls for a more developed and refined technical knowledge and
understanding of customer data and needs for a successful career in the future FSI market.
The need to AI and Blockchain technical knowledge
The future is expected to introduce a gradual and technology-driven environment for financial
institutions, including cyber-security, Blockchain, and automotive services. The demand for
candidates with adequate digital expertise is expected to increase, with employees requiring
sharpening regulation assessment abilities and basic social and management skills