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AP Executive looks at some of the key trends currently shaping the financial services industry

  • Publish Date: Posted 29 October 2024
  • Author: Gina Le Prevost FIRP DipRP, CEO

​There is no doubt that an enormous transformation has taken place in the financial services industry, caused by factors including evolving regulatory landscapes, changing client expectations, technological advancements and shifting workforce expectations and demands.

As a result, in order for recruiting companies to be seen as being attractive destinations by prospective employees, these companies need to ensure that they are up-to-date with the trends underpinning the changes in the financial services industry recruitment environment.

AP Executive notes that regulatory changes are a common occurrence in the business world and, at times, can happen in the blink of an eye. When this takes place, businesses that fail to take note of these changes and make the necessary adaptations in response to them can unwittingly find themselves falling foul of the law.

Keeping pace with these changes is particularly important for companies operating in highly regulated industries such as banks and other financial services providers.

To keep pace with complex regulatory changes, a rigorous and proactive approach is required. Organisations must equip themselves with advanced compliance management software, train their teams in relevant compliance issues, arm themselves with further precautions (such as implementing artificial intelligence) and rapidly put in place suitable policies to respond to the emerging regulatory changes.

Perhaps most important for companies to keep on the right side of changing regulatory requirements is to ensure that they recruit the very best talent available in terms of compliance expertise.

When it comes to changing client expectations in the financial services sector, AP Executive observes that the past decade has seen dramatic changes. For example, with the emergence of software technology that allows for remote interactions (rather than traditional face-to-face meetings in days gone by), the financial services industry has now fully embraced a digital-first experience.

At the same time, clients now demand convenience, security and a balance between digital solutions and personalised human interactions. In fact, a recent report found that 80% of customers now consider the experience a company provides to be as important as its services.

As disruptive companies leverage breakthroughs in cloud, mobile, social and artificial intelligence technologies to deliver personalised, valuable and immediate experiences, clients have more choices than ever. Accordingly, they have come to expect superior experience from every organisation they deal with.

As with recruitment requirements to keep pace with regulatory changes, employing specialists with the knowledge and skills to deliver highly satisfactory customer experiences is vital for companies seeking to keep ahead of the curve.

AP Executive has noted that technological advancements in the financial services industry have seen the emergence of a number of new developments in the artificial intelligence, cryptocurrency and the digitalisation of securities through blockchain technology, leading to a reduction in the need for traditional financial institutions.

The financial services industry is heavily focused on developing services and platforms relating to digital securities, which in turn has led to a skyrocketing demand for specialised talent in careers such as data scientists, AI specialists, cybersecurity experts and blockchain developers.

AP Executive points out that shifting workforce expectations is another key factor in recruitment in the financial services industry. While remuneration remains as important as ever, other issues have arisen that companies need to recognise and respond to if they are to attract the top talent out there.

For example, employees now demand holistic compensation packages that include things like housing allowances, generous bonuses and top-quality healthcare provisions.

Equally, while the financial services industry has in the past been associated with long working hours and high stress levels, employees have now begun to seek an improved work-life balance that encompasses flexible working arrangements, remote work options and wellness programmes.

Companies that make the effort to address shifting workforce expectations will find themselves attracting the cream of the crop in terms of financial services talent.

Another factor that has become of increasing importance to employees is the degree to which companies uphold investment principles that prioritise environmental issues, social issues and corporate governance (ESG) as well as practice sustainable finance by following investment processes that account for and promote environmental and social factors.

Alongside ESG, an additional influence to prospective employees is whether or not, and the degree to which, companies in the financial services sector make diversity, equity and inclusion (DEI) a priority.

The increasing demand for ESG and DEI in the workplace is driving a substantial increase in the demand for professionals qualified in these fields, not only to support companies’ further recruitment but also to aid their compliance with various application regulations.

Gina Le Prevost, FIRP, DipRP, AP Group CEO, concludes, “AP Executive is fully committed to bringing together candidates and employers in the financial services sectors. As such, we take great interest in the emergence of important new factors in this regard such as regulatory landscapes, changing client expectations, technological advancements and shifting workforce expectations and demands.”

For more information about AP Executive, please visit www.ap-executive.com or contact Gina on +41 79 760 8233 or email her at gina@ap-executive.com.