2024 Financial Services Skills Vision: Meeting Tomorrow's Challenges Today - Analysis & Outlook
When 2023 came to a close, we at Caspian One posed a crucial question to over 700 Financial Services professionals in our community, "What resonates most with your 2024 skills vision?"
Answers ranged from concentrating on wellbeing and diversity to expanding teams in cost-effective, time-efficient ways, but the predominant response was clear: ensuring teams are equipped with the right specialist technical skillsets to compete and innovate, voted for by over 60% of respondents.
This response aligns perfectly with what we’re witnessing in the rapidly evolving financial ecosystem presented in 2024 - where the acquisition of key skills is vital if you intend to stay ahead.
The outlook for 2024 underscores a necessity to strategically attain resources that not only understand the current technological landscape... but are also prepared to adapt to these emerging technologies. The ability to access and integrate these skills will be a defining factor in a firm’s capacity to innovate and compete in 2024 and beyond.
464 of 726 responses - 64% - selected a focus on equipping teams with the right specialist technical skillsets to compete and innovate as their No.1 priority in resource acquisition this year.
Trend Analysis and 2024 Outlook
As we venture into 2024, the Financial Services industry is poised to be shaped by several key strategic trends, each carrying significant implications for skills acquisition and innovation. These were the topics that were most prominent when speaking with our financial services network:
AI Trust, Risk, and Security Management: As we increasingly rely on AI systems, there's a growing need for a new breed of professionals skilled in managing the trustworthiness and ethical considerations of AI. This includes expertise in risk assessment, AI governance, and cybersecurity measures tailored to AI systems. However, one of the significant challenges in this domain is the scarcity of available resources with these specialised capabilities. The market faces a shortage of professionals who possess the right blend of AI proficiency and understanding of its implications in the financial sector.
Continuous Threat Exposure Management: With cybersecurity threats evolving rapidly, FinTech companies need experts who can continuously monitor, identify, and mitigate potential security threats. This demands skills in real-time threat analysis, advanced cybersecurity technologies, and proactive security management strategies.
Sustainable Technology: As ESG considerations become more prominent, there's a growing need for professionals who can integrate sustainable practices into Financial Services operations. Skills in green computing, sustainable system design, and ESG compliance will be highly sought after.
Data and Analytics: As financial institutions continue to embrace digital transformation, the ability to effectively analyse large volumes of data for insights that drive decision-making has become indispensable. This trend is not just about managing data but also about extracting meaningful insights, predicting market trends, and informing strategic financial decisions. The challenge, however, lies in the scarcity of talent with these specialized capabilities. There's a significant gap in the market for experts who not only understand the technical aspects of data analysis but also possess the financial acumen to interpret this data in a business-relevant context.
Platform Engineering: The shift towards comprehensive, scalable platform solutions calls for talents in platform architecture, cloud computing, and system integration. Professionals who can build and maintain resilient, scalable financial platforms will be crucial.
AI-Augmented Development: As AI continues to augment software development processes, the demand for developers skilled in AI-based coding, machine learning models, and automated testing will rise. These skills enable faster, more efficient development cycles in FinTech applications.
Industry Cloud Platform: The move towards industry-specific cloud platforms will require cloud specialists who understand the unique regulatory and operational needs of the financial sector, including cloud security, compliance, and FinTech-specific cloud functionalities.
The Imperative of Right Skills in Times of Reduced Funding
In 2023, the UK FinTech sector experienced a significant downturn in funding, as reported by Tracxn. This decline is attributed to challenging macroeconomic conditions, including rising interest rates, inflationary pressures, and heightened energy costs. The reduction in investment was not just in total funds but also in the frequency of funding rounds across stages – from seed to late-stage ventures.
This contraction in funding underscores a vital strategic point for FinTech firms: the necessity to optimize resource allocation and focus on acquiring key skills. In times of limited funding, the margin for error in hiring decisions is minimal. Companies must ensure that each role is filled by individuals who not only have the necessary technical skills but also can drive innovation and contribute to sustained growth.
This situation underscores two key strategies:
Strategic Resource Optimization: In an era of tighter budgets, financial technology companies need to focus on filling critical roles that drive ROI. Emphasizing skills in areas like data analytics, AI, and cybersecurity becomes crucial, as these enable firms to innovate and operate efficiently under financial constraints.
Investment in Resilient Resources: Skills acquisition should be viewed as a long-term investment. Building a team that is adaptable, resilient, and capable of navigating economic fluctuations is essential for sustaining growth and seizing opportunities when market conditions improve.
In conclusion, the lesson from the UK's FinTech funding decline in 2023 is clear: even as external funding becomes challenging, the internal investment in the right resources must remain a top priority for FinTech firms. It's not just about surviving the present; it’s about positioning for future growth.
The Caspian One Solution
At Caspian One, we understand these evolving demands and are uniquely positioned to connect Financial Institutions with professionals who not only possess these in-demand skills but can also drive innovation and growth. With our expansive network and industry expertise, we help firms bridge the skill gap, ensuring they are not just prepared for 2024 but are set to lead the financial services technological revolution!
To learn how Caspian One can help your Financial Institution attain the resources to innovate, compete and stay ahead in 2024, click here and arrange an initial briefing with our team. Let's turn your 2024 vision into reality with the right skills and expertise.
