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Banking Industry Needs to Refocus How it Views Talent: Report Featured

The rapid adoption of fintech banking services was already underway before the COVID-19 pandemic catalyzed a broader transition toward remote banking. Now, the acceleration away from traditional brick-and-mortar banking has demanded legacy institutions reimagine how they build their workforce. To that end, a new report from Eightfold AI has analyzed workforce trends and benchmarked them in the context of the fintech landscape.

artificial intelligence 3382507 640 smallThe report, “How Banks Can Become Future Ready,” was published recently. Using its deep-learning intelligence platform, Eightfold concluded banks will only be able to meet demand for digitalization by “upskilling existing talent, calibrating roles with emerging skills, and hiring for potential,” reads the announcement.

“Considering the role that banks will play in a global economic recovery, they must become more diverse and draw from a larger pool of talent in order to continue their momentum. They are now competing with entire ecosystems of tech organizations for the same pool of talent,” said Kamal Ahluwalia, president of Eightfold AI. “Future-thinking institutions must scale their investments in talent in order to maintain their strategic advantage.”

For this analysis, Eightfold looked at close to 700,000 public profiles from leading banking institutions and ran them up against 25,000 profiles available from top fintech organizations, according to the report.

From Twitter @paymentsjournal

"Today, there are approximately two billion people globally who do not have legitimate access to #banking services. This is where #FinTech companies and investors come into the picture."

Despite significant progress in meeting customers’ digital demands, banks still face myriad challenges, Eightfold says. According to its analysis, only 15% of “top in-demand skills” are being employed in their IT workforces. To address these challenges, Eightfold suggests banks retool their hiring approach. This includes strategies that emphasize:

  • Upskilling and reskilling as a means to close the skills gap with a focus on providing employees with “rising skills” like Docker, Python, Machine Learning and node.js. Further, front and middle level employees should also focus on data analysis, digital sales and business intelligence, recommends the report.
  • Aligning current roles with future skills and the consideration of how emerging skill sets might come into play.
  • The adoption of a “hiring for potential” mentality and identifying both internal and external candidates who can learn in-demand skills.

Earlier this year, information technology company Accenture identified trends expected to play a role in the evolution of banking in 2022. According to its analysis, COVID-19 not only forced a reshaping of the industry as a whole, but it also forced legacy institutions to become more proactive, adaptive and innovative.

Accenture notes the intense war for talent that banks are engaged in as the global supply chain has been widely disruptive for both goods and services. Competition is on the rise, reads the company’s trends report, and winners will “transform themselves as employers.”

“I see an incredible future for banking. I see this as a discontinuity, a point in time that we’re going to recognize, looking back, as the moment when everything changed fundamentally. It’s going to be a different world going forward,’ said Michael Abbott, senior managing director and global banking leader at Accenture.

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