Establishing a technology talent strategy

6 September 2024

As financial services organisations increasingly focus on digital transformation, having the right expertise and skillsets is critical. However, it’s not simply a question of human capital. It requires developing a talent strategy that recognises the profound impact technology will have across the organisation.

Technologies such as cloud, containers, artificial intelligence and machine learning, internet of things, monitoring and analytics continue to rapidly evolve. It’s a landscape that will not only create new roles but also reshape existing roles and functions, business operations and processes.

How financial organisations deal with such change will dictate how they attract and retain staff to build, manage and run all components of the information systems that are core to a successful digital transformation programme. Equally important will be how organisations manage the impact of digital transformation on non-IT roles and functions.

Creating a roadmap

Talent and skills are vital aspects of an organisation’s digital transformation roadmap. Conducting a current state analysis will identify any skills gap and what expertise you need to acquire to reach your target state. While hiring offers organisations more security and control, the current technology skills shortages, particularly in emerging technologies, mean external support remains vital. With skill shortages unlikely to change in the short to medium term, most financial services organisations will need to balance internal resources with external support as part of the skills sourcing mix.

Navigating with a skills shortage

There is little doubt that a technology skills shortage is impacting digital transformation plans. Banks, insurers, and asset managers are not only competing against each other for top IT talent, but they are also competing against technology giants and fintechs. While offering a top wage and benefits package can help get candidates through the door, your reputation as an employer, working practices and conditions are becoming equally important to prospective employees looking for a better work-life balance. Looking at how to appeal to talent holistically will also help retain existing employees.

Cultivating a connected workforce

The ability to leverage the skills of a global workforce presents opportunities for multinational financial services organisations. Tapping into specific knowledge and expertise in different international locations and communities can reduce the burden of skill shortages and optimise intra-group talent. It requires a detailed analysis of skills, where expertise is located, and the need for technology and taxonomies to be standardised. In addition, the development of new skills through the setup of centres of excellence (COEs) can help organisations keep pace with evolving ecosystems and fast technological change. COEs play a pivotal role in driving innovation within an organisation. Acting as hubs to nurture talent and expertise, foster skill development, and helping to encourage a culture of experimentation and collaboration, they open the door to onboard talents at different stages and achieve better outcomes.

Thinking beyond technology

Assessing what other skills are essential to manage and maintain digital transformation should not be overlooked. The impact of digital transformation on financial services organisations goes beyond IT and emerging technology skills. The levels of investment needed and strategic change required means the role of the CIO/CTO will become increasingly important in the decision-making process. Equally, adapting governance and improving Board awareness of the impact of digital technology needs to be fully considered.

As the race to acquire and retain top talent needed for a successful digital transformation intensifies, the ability of financial services organisations to develop an enterprise-wide technology talent strategy will be vital.