Financial Services Skills Shift to Hybrid
A new financial services skills report highlights a shift in wage premiums towards hybrid profiles, sparking debate over whether to build, buy, or borrow talent. Meanwhile, finance hiring has slowed sharply, with job openings down 75% from their 2022 peak to 134,000, signaling consolidation amid higher rates and AI-driven cuts.
The shift towards hybrid roles reflects the growing importance of "power skills" that blend technical expertise with human intuition. Professionals are expected to interpret AI-generated forecasts and oversee AI-powered regulatory monitoring tools. Financial analysts are moving from manual tasks to strategic financial planning. KPMG data indicates that 55% of financial services firms plan to increase hiring in 2026 compared to 2025, with 57% intending to invest in AI skills. This signals a move towards digital capabilities and AI transformation. The rise of AI is projected to increase global banking industry profits by 9% to USD 2 trillion by 2028. However, talent shortages, legacy system complexities, and privacy concerns continue to hinder progress. The Financial Services Skills Commission is addressing these gaps by prioritizing reskilling, improving skills forecasting, and broadening the talent pool. They're also researching the impact of AI on workforce skills over the next 5-10 years. Financial institutions are also focused on modernization, with nearly 9 in 10 planning to invest in it. Security spending is projected to increase by an average of 40% in 2026. Firms are also strengthening employee exit procedures to protect business assets, given increased cross-border moves and lateral hiring. A Deloitte report found that 66% of those working remotely at least part-time would likely leave if required to work on-site five days a week. Hybrid work arrangements are linked to stronger engagement, organizational commitment, and career advancement opportunities.
