Does the relentless pursuit of digital expertise overshadow the intrinsic value of financial acumen in the financial sector? It's a balancing act where the lure of digital expertise must not displace the fundamental principles of finance. This fusion - or perhaps friction - between old knowledge and new technology sets the stage for a recalibration of talent acquisition strategies.
Understanding the digital talent gap in the financial sector
In the financial sector, the talent gap is increasingly resembling an abyss. Given the current technological advances, demand far outstrips supply. What is needed are qualified professionals who can navigate this new digital landscape. We are talking about a field where blockchain, AI and cybersecurity are not just buzzwords, but link the backbone of innovation. This problem is exacerbated by competition from other industries such as IT, consulting and fintech companies that are also competing for similar talent pools.
The digital skills gap is not just about a lack of technical skills. It's about a shortage of professionals who embody a mix of financial acumen and digital dexterity. These are individuals who look at traditional financial models through a digital lens, recognising opportunities for disruption, efficiency and growth. Imagine a financial analyst who doesn't think in numbers but can also use predictive analytics (or knows the tools) to forecast market trends. Or a compliance officer who is familiar with blockchain technology and ensures that transactions are secure and in line with evolving regulations. Read our previous article on compliance.
The strategic imperative of advanced training (up- & reskilling) is also highlighted in our last article. Turn your existing finance professionals into digital scholars. Companies are investing in L&D (Learning & Development) and training programmes that equip their teams with the latest digital tools and mindsets. Because this transformation is as much about cultural change as it is about technology upgrades.
Ultimately, understanding and bridging the digital talent gap in the financial sector is about looking beyond the CV. It's about recognising potential, fostering growth and creating an environment where digital professionals in finance can thrive. Leaders in the financial sector are now also looking for people whose special skills can tame future challenges in the financial world.
In response, finance and fintech companies are becoming increasingly creative in their recruitment strategies. They are broadening their horizons, looking for talent in related fields, offering competitive packages and emphasising their role in driving meaningful innovation. They are also focusing on upskilling their existing employees and turning experienced finance professionals into skilled innovators through comprehensive training programmes.
Innovative Talent Acquisition Strategies
Suppose you're a chef in a busy kitchen and your pantry is stocked with the usual ingredients. Now suppose you discover a secret passageway that leads to an exotic market that has rare spices, unique flavours and ingredients - and they are so vibrant that you could turn your kitchen into a work of art. In the financial sector, especially in fintech, finding the right talent is akin to discovering this secret passage. The talent acquisition landscape has evolved and innovative strategies are the new ingredients that help organisations stand out in a crowded market.
Innovative talent management strategies in the financial sector and fintechs are not just about filling jobs, but about creating ecosystems where unique talent thrives. Companies today are presenting themselves as well-funded fintechs that combine the excitement of a startup with the stability of the established financial industry, ensuring they attract those who combine the best of both worlds. This unique positioning appeals to professionals who crave the creativity and agility of a startup while seeking the security of established financial institutions. It's about creating a corporate brand that meets the demands of today's workforce.
The British group Lloyds did this back in 2018, describing itself as a "well-funded fintech" in job adverts and suggesting that potential applicants from industries such as gaming, gambling and travel be hired. (Young) influencers were specifically addressed here. This means that organisations are not only offering jobs, but also missions - the opportunity to redefine banking for the digital age. This approach is becoming increasingly important in a competitive landscape where traditional financial institutions and tech giants are also competing for the same talent pool, each offering their own blend of stability, innovation and culture.
As we have already mentioned, learning and development (L&D) is also part of the new talent management. Fintechs are turning inwards and focusing on the digital advanced training of their current workforce to ensure that the talent they already have grows with the organisation and stays ahead of the curve. Our colleagues at PALTRON explore the topic of blended learning, learning culture and learning and development in detail in a series of articles.
External HR professionals for digital talent acquisition are also increasingly becoming a strategy for sourcing specialised or future-oriented skills. Their expertise and networks can uncover hidden gems in the talent pool and ensure that companies stay ahead of the competition. And for those hard-to-find positions, remote work / offshoring has become a strategic move. Not so much for reasons of cost efficiency, but to equalise specialist skills and tap into a global talent pool. This global approach not only diversifies the talent pool, but also brings in new perspectives that can drive innovation.
To summarise, the financial sector and fintech companies are spicing up their talent acquisition strategies with a mix of internal advanced training, external recruitment and a dash of global talent sourcing. These strategies are not only used to fill vacancies. Rather, they enrich organisations with a diversified and skilled workforce that is ready to take on the challenges of the digital age. Just as exotic spices can transform a dish, innovative talent acquisition strategies are transforming the financial landscape, making it more vibrant, diverse and flavourful than ever before.
The everlasting importance of employer branding and corporate culture
Employer branding, especially in the financial sector, is key. This industry, which in the past was considered stable but perhaps also a little stolid, urgently needs to shine in the eyes of its workforce. Because they crave innovation, diversity, inclusivity and purpose. And also for job security, financial and mental health. In the latter case, we are of course talking about employee wellbeing. In view of the fact that the financial sector is often less attractive than the dynamic IT, automotive and consumer goods industries, the challenge is great, but not insurmountable.
Companies in the financial services sector are therefore pivoting and weaving stories that emphasise their commitment to technological innovation and corporate social responsibility (CSR). As well as a culture that promotes diversity and inclusion. Just like Lloyd has done. These are not just simple buzzwords, but the foundation of a compelling corporate brand that speaks directly to the aspirations of a generation that wants to make a difference.
For example, a fintech startup that uses blockchain for social good, or a bank that not only promises its customers financial stability, but also over-invests its employees in learning and development. These scenarios illustrate the evolving narrative that financial institutions are developing to differentiate themselves as employers. Here too, our partner PALTRON offers you a valuable guide: Five steps to successful employer branding.
Obviously, bold words must be followed by action - the promises and values must be manifested in the corporate culture. We cannot emphasise the substantial value of a solid corporate culture often enough. Are you nurturing your corporate culture enough? As we described in our previous article "Finding and retaining talent for compliance", corporate culture and talent management go hand in hand. Think of recruitment marketing. Your culture is the subliminal advert that attracts new talent. And, above all, the social glue that binds the workforce together and binds your employees to your company.
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