Banking sector facing skills shortage

One in three senior executives struggle to fill risk management and digital roles, shows BPFI survey

BPFI chief executive Brian Hayes: 'Although there are skill shortages for many roles in the industry, it is important to note that the overall talent pool in Ireland is seen as an advantage internationally.'

The Irish banking sector is not immune to the skills shortage being experienced in other sectors with one in three senior executives saying they are struggling to fill risk management and digital roles.

Competition for talent in non-traditional banking roles is intensifying, shows a survey published on Monday by Banking and Payments Federation Ireland (BPFI).

The survey shows more than a third of respondents identified skill gaps in digital skills, including data analytics and artificial intelligence, as well as in the area of regulatory and compliance. This was most evident among international banks with 45% of respondents noting difficulties accessing talent in those areas.

More than a quarter of international banking respondents noted challenges accessing corporate banking and treasury skills, a key aspect of international banking. 

More than half (58%) of banking executives said they would usually address skills gaps by hiring new employees with those skills, while 22% would recruit graduates or apprentices and train them. A quarter of respondents cited upskilling or reskilling existing staff as their staff management priority.

“Although there are skill shortages for many roles in the industry, it is important to note that the overall talent pool in Ireland is seen as an advantage internationally,” said BPFI chief executive Brian Hayes.

We can see from the findings that banks are committed to upskilling or reskilling existing staff and have invested substantially in staff training, with training costs accounting for about 4% of average labour costs in financial services, according to the latest CSO data.”

Banks in Ireland still attract a high number of college graduates, with 15.4% of 2022 honours degree graduates working in financial, insurance, and real estate activities a year later, says the Higher Education Authority. 

“The way people and businesses bank is changing and, with it, what it means to work in a bank will continue to change too. Attracting a broad range of talent will be central to the banks’ future growth and stability,” he said.