In an era marked by technological disruption, regulatory complexities and unpredictable economic shifts, the finance sector is currently up against a wide array of challenges that demand a strategic and flexible response.
That’s why it’s never been more important for finance employees to reskill and upskill in the face of economic and industry uncertainty. The right skills and knowledge will put finance employees in the best possible position to adapt to the changing landscape and technological advancements, which means fostering a culture of continuous learning and resilience.
If you’re in the finance sector and wondering how you’re supposed to keep up when things are constantly changing, read on! Below, we dive into some of the biggest challenges facing finance organisations today, along with the pivotal role learning and comms plays in overcoming these hurdles.
The finance sector is notoriously complex. That’s probably one of the only things that will never change about it! In recent years, the finance sector has been hit with change after change, from grappling with new cybersecurity threats to the ferocious pace of technological change, making it tricky to keep up with the constant change.
But in a sector where consumer trust matters more than anything else, it’s crucial that every single employee maintains razor-sharp knowledge of your products, services and what’s going on in the world. So what are some of the biggest challenges we’re facing today?
It’s no secret that financial institutions are facing an ever-changing regulatory landscape. Complying with these regulations must be a priority for every single finance organisation, or they risk being hit with fines and severe penalties. If even one person doesn’t understand the relevant laws and regulations inside out, it can cause serious problems for the business.
The finance sector has never undergone so much change in such a short period of time. On the customer side, many banks are closing brick-and-mortar branches, and encouraging online and app banking, with more remote customer service. Internally, finance businesses are getting to grips with cryptocurrency, new ways of moving money around and an increasingly connected, integrated financial world, requiring more innovative technological solutions.
New cybersecurity threats are emerging all the time. Whether it’s scams affecting customers, account hacking or large-scale fraud, the stakes are sky-high when it comes to managing cybersecurity. Customers and businesses rely on their financial institutions to protect their money, meaning everyone needs to stay up to date with the latest risks and how to combat them.
62% of senior banking leaders believe that the digital talent gap has been widening in recent years.
- Capgemini
Like many industries, the finance sector is suffering from ‘brain drain’. 20% of employees in the finance sector are considered a retention risk due to low pay, limited career progression and unclear communication around organisational changes. The lack of diversity across the sector may also impact on the willingness of diverse talent to join or stay at finance firms.
It’s no secret that the global economy is particularly volatile right now. In the wake of the 2020 pandemic, businesses have struggled with fluctuating interest rates, skyrocketing inflation and tough economic measures from governments around the world. This has left finance sector employees struggling to keep up with the constant change - and there’s no sign that things will slow down anytime soon.
While the finance sector’s challenges can feel overwhelming for even the most talented L&D team, the good news is that there’s plenty we can do to equip finance employees with the skills and knowledge they need to perform at their best, no matter what happens in the economy or the financial industry.
Obviously, compliance training should be the #1 priority for any finance training department. An agile learning platform ensures you can provide continuous training on regulatory changes, keeping employees updated and compliant with evolving rules. This compliance training can be organised into focused playlists for each department, ensuring everyone gets access to the exact compliance training they need for their roles, when they need it.
One of the main reasons finance businesses struggle to retain and attract top talent is a lack of development opportunities. Providing employees with high-quality professional development content will help set you apart from your competitors, helping you both address the talent shortage and boost employee morale and engagement. Soft skills and leadership training will help build resilience as employees adapt in a fast-changing sector.
The finance sector has typically been dominated by white men - but in recent years, financial institutions have started to think about how they can create more diverse, inclusive businesses. 73% of millennial women working in financial services believe that while their organisations talk about diversity, opportunities aren’t equal for everyone. By putting diversity and inclusion on the boardroom agenda, and then taking genuine actions to improve the situation, the finance sector will naturally start to attract more diverse talent, which is proven to be hugely positive for profitability and talent retention.
Looking to boost diversity at your finance institution? Check out the DEIB Hub for the fastest, most cost-effective way to build a more inclusive workforce.
If a bank is affected by a data breach, it’s crucial that every single employee knows about it immediately. The security team will need to examine how the breach happened, the customer service team will need to be prepped to respond to customer questions and concerns and the leadership team needs to take charge to ensure the issue is dealt with swiftly. During times of crisis, having the ability to quickly and efficiently distribute comms in real time can spell the difference between a contained, well-managed issue and an unmitigated PR disaster.
Employees in the finance sector are expected to stay up to date with the latest financial and economic news. Creating a playlist of hyper-relevant news and resources from trusted sources will help keep employees across the business informed about the developments that matter to them and their customers. For instance, Greystar created a live feed of crucial news and government updates throughout the COVID-19 pandemic to keep employees worldwide in the loop about the latest advice and regulations.
All of these solutions should be underpinned by a flexible learning and comms platform, which is the go-to place for all job-critical information and knowledge. By building a continuous learning culture bolstered by rapid knowledge transfer and effective communication, finance organisations can rest assured that their employees stay informed, agile and responsive to the evolving financial landscape.