The banking sector has been rapidly transforming in recent years, with the introduction of new technologies such as blockchain, artificial intelligence, and big data analytics. These technologies have enabled banks to provide more personalised services to customers, streamline their operations, and reduce costs. However, to fully leverage the benefits of these technologies, banks need employees who are well-versed in digital skills.

Despite the growing demand for digital talent in the banking industry, there is a significant digital talent gap that has become a pressing challenge for industry leaders. The COVID-19 pandemic has accelerated the adoption of digital technologies in the banking sector, further increasing the demand for digital talent. However, many banks are struggling to find qualified candidates who can develop, implement, and manage digital solutions. This talent gap has been exacerbated by the lack of digital talent pipeline and increased competition from fintech startups, which are often more agile and innovative.

In this article, we will explore the reasons behind the sudden digital talent gap in the banking sector and present some ways to solve it. The banking industry needs to take immediate action to address this issue and ensure that they have the digital talent they need to remain competitive in a rapidly changing industry. By investing in employee training and development, collaborating with educational institutions, hiring freelancers and contractors, emphasising diversity and inclusion, and offering competitive compensation, banks can bridge the digital talent gap and position themselves for future growth.

Why is there a sudden digital talent gap in the banking sector?

The banking sector has undergone a significant transformation in recent years, with the introduction of new technologies such as blockchain, artificial intelligence, and big data analytics. These technologies have enabled banks to provide more personalised services to customers, streamline their operations, and reduce costs. However, to leverage the benefits of these technologies, banks need employees who are well-versed in them.

The problem is that there are not enough professionals with digital skills to fill these positions. The banking sector is facing a shortage of qualified candidates who can develop, implement, and manage digital solutions. This talent gap has been exacerbated by the pandemic, which has accelerated the adoption of digital technologies in the banking sector.

The sudden digital talent gap in the banking sector can be attributed to several factors:

1. Rapid technological advancement: The fast pace of technological advancement has led to a growing demand for digital skills, which many existing banking professionals may not possess.
2. Lack of digital talent pipeline: There is a lack of individuals pursuing digital education or training programs that are relevant to the banking industry.
3. Increased competition: The banking sector is facing increased competition from fintech startups, which are often more agile and innovative. Fintech startups have been able to attract and retain digital talent, leaving traditional banks struggling to fill their digital talent gap.
4. The COVID-19 pandemic: The pandemic has accelerated the adoption of digital technologies in the banking sector, further increasing the demand for digital talent.

5 Ways to solve digital skill gap in banking and finance

1. Investing in employee training and development: Banks can provide training programs for their employees to upgrade their digital skills. This can include online courses, workshops, and certifications. OCBC Bank in Singapore offers training programs for its employees to upgrade their digital skills, including coding, data analytics, and machine learning.
2. Collaborating with educational institutions: Banks can partner with universities and other educational institutions to develop training programs that are tailored to the needs of the banking sector. This can help to bridge the gap between academic learning and industry requirements. DBS Bank in Singapore has partnered with several universities to develop training programs in fintech and digital banking.
3. Hiring freelancers and contractors: Banks can hire freelancers and contractors who have the necessary digital skills to work on specific projects. This can help to fill the talent gap in the short term. CIMB Bank in Malaysia has partnered with gig economy platform, FintechLab, to hire freelancers and contractors with digital skills.
4. Emphasising diversity and inclusion: Banks should prioritize diversity and inclusion in their recruitment efforts. This can help to attract a wider pool of candidates with diverse backgrounds and skills. Maybank in Malaysia has launched a Women in Tech program to attract more women into technology roles.
5. Offering competitive compensation: Banks should offer competitive salaries and benefits to attract and retain digital talent. This can help to position them as an attractive employer in a competitive market. Standard Chartered Bank in Singapore has increased salaries for its technology staff to remain competitive in the talent market.

Conclusion

The digital talent gap in the banking sector is a pressing challenge that requires immediate attention. The banking industry needs to take a multi-faceted approach to address this issue, including investing in employee training and development, collaborating with educational institutions, hiring freelancers and contractors, emphasising diversity and inclusion, and offering competitive compensation. By doing so, banks can ensure that they have the digital talent they need to remain competitive in a rapidly changing industry. The digital talent gap is not only a challenge, but also an opportunity for banks to transform themselves and position themselves for future growth.

‍