Investment in learning shows promise for financial services skills gap

• New report shows financial services has the UK’s highest share of in-demand roles, with data and software positions continuing to prove hardest-to-fill
• The sector is investing more in learning than almost every other sector, with firms prioritising both technical skills and behaviours
• Firms have simplified learning, meaning around 57% of all training is now self-directed

Investment in skills by financial services firms is outstripping almost all other sectors, with firms prioritising technical skills and behaviours, according to a new report from the Financial Services Skills Commission.

The report – ‘Positive progress? Skills for the future of financial services 2025’ – shows that while demand for skills remains high, firms’ efforts to build skills in areas such as artificial intelligence, data analytics and software development are making an impact on the sector’s challenging skills gap.

The research is backed up by government data that suggests financial services is one of only two sectors to have seen an increase in spend on learning; bucking an economy-wide decline in per-employee investment in training.

The report shows that data and software roles continue to top the list of hard-to-fill roles. And, for the second consecutive period, demand for behaviours, such as coaching, has increased. However, the report also notes that the financial services sector has adopted skill-based hiring at a much faster rate than other industries.

The data released also suggests that the sector’s efforts to simplify personal development have significantly shifted the emphasis away from mandatory training, freeing up space for employees to pursue future-focused, value-adding learning. Furthermore, the report collates – for the first time – analysis of the industry’s move towards measuring ‘active learners,’ rather than simply counting the amount of hours spent learning.

Claire Tunley, Chief Executive of the Financial Services Skills Commission, said: “While the sector’s skills gap remains a challenge, the green shoots of progress give us confidence for the future. Excellent progress is being made to put skills at the heart of business strategy and firms are taking purposeful action to close skills gaps.

“Despite these positive signs, we cannot become complacent. Our efforts must go further and faster, and firms need to continue scaling their efforts at pace. By continuing to work in positive collaboration, we can ensure that the sector has the talent and skills it needs to drive productivity and growth.”

The full report, including further data and analysis, is available here.