Digital Skills

We define digital skills as the abilities needed to “utilise digital devices, communication apps, and networks to access and manage information,” ranging from basic online searching and emailing to specialized programming and development.

Recently, the government issued the Essential Digital Skills Framework, outlining the main skills adults need to participate safely and effectively in digital life. These include communicating, handling information & content, transacting, problem-solving, and being safe & legal online.

Addressing the Digital Skills Gap and Employability Issues

Despite ongoing COVID-19 recovery, the pandemic has opened new global business pathways for financial services. As a result, technological advances prompt firms to reassess workforce skills, focusing on efficiency, compliance, market-entry, and product development.

These changes are now addressed within the context of Covid-19’s impact on our working lives. Although some regions show signs of adapting, with people adjusting well to remote work, the new normal likely involves a hybrid model with more remote working. Consequently, with less face-to-face training, formal action to address skills gaps becomes more critical daily.

Closing The Digital Skills Gap

The pandemic has accelerated digital adoption, changing work dynamics and challenging leaders to identify essential skills. As a result, this hinders creating role profiles, conducting assessments, and developing training initiatives.

Business culture must change profoundly. While early adopters seize opportunities, some lag behind. Moreover, the pandemic has exposed vulnerabilities, making business models obsolete faster.

Digital Acceleration and the Urgency for Skill Evolution

Neglecting the digital skills gap could cost 14 G20 countries $11.5 trillion in GDP. Therefore, firms must prioritise upskilling and reskilling now, especially for high-demand roles like data analysts or risk managers.

Core technologies producing vast data are embedded in operations, surpassing general workforce skills. However, despite analysis tools, they aren’t fully integrated globally.

Furthermore, advancements like 3D printing, 5G, AI, machine learning, robotics, and AR promise transformative changes, shaping our lives and careers.

Key Drivers of Digital Transformation

There are five main drivers of global digital transformation:

1. Mobile tech and social media reshape society and workplaces. Consequently, digital-native young workers need adaptive tools and changing environments.
2. Evolving customer expectations drive shorter product lifecycles and digital enablement.
3. Collaborative design and delivery across jurisdictions transform manufacturing.
4. Rapid analysis of unstructured data provides insights. As a result, machines become intelligent and remotely monitored.
5. Businesses opt for cloud solutions, reducing costs and enhancing flexibility.

Keeping Pace with Global Regulation

Financial services employees need the right skills and data insight to keep pace with changing global regulations. Many countries had expanded regulatory frameworks before the pandemic.

To regulate digital business effectively, regulatory bodies will acquire greater powers and become more sophisticated. As a result, they’ll need to be part of the digital transformation and better connected to reduce regulatory “arbitrage” risks.

A Greener Future – The Demand for ESG Talent

ESG is crucial for many firms, reflecting the financial services industry’s role in net zero transition. Consequently, ESG skills demand is rising, and ESG integration is key in digital transformation. Many companies use IoT or AI-driven ESG analysis models to create standardised frameworks. Therefore, young professionals with technology and ESG expertise will be crucial for future roles.

Ready To Work – Putting Digital First

By 2025, 50% of employees will need reskilling as technology adoption increases. Moreover, in-demand skills will change, and gaps will remain high. 40% of core skills will change for those staying in roles, and 50% will need reskilling.

Salesforce’s Global Digital Skills Index reveals a growing crisis, with 75% of professionals not feeling ready for a digital-first world.

In conclusion, we must actively address the financial services skills gap in the coming years. By identifying the right learning pathways, we will ensure rapid upskilling and employability programmes to encourage young people to pursue rewarding careers in the industry.