The financial services sector is a vital part of the UK’s economy, employing 2.5 million people and generating £278bn in economic output. According to the UK Government report State of the Sector: Annual Review of UK Financial Services 2023, the sector employs over 1.1 million in financial services and 1.3 million in related professional services.
However, the finance job market is currently experiencing a significant and continued decline in active jobs. Since a peak in July 2022, challenges primarily driven by inflation, supply-side disruptions, and the impact of automation technologies have contributed to a notable reduction in finance job numbers. Adding further fuel to the fire, 2023 saw global banks cutting approximately 60,000 jobs, marking the largest decline in job postings since the 2009 financial crisis.
Beyond the industry’s continued belt-tightening, it has been suggested that the use of AI will also contribute to dwindling job numbers. A new report by Citi suggests that 54% of jobs in the banking sector have a high potential for automation, with another 12% showing potential to be augmented by AI.
The changing landscape of the finance job market
As banks adapt to increased competition for roles, those looking to advance their careers will need to find ways to differentiate themselves in a crowded field.
AI technologies, for example, are increasingly automating tasks across various banking functions, including customer management, fraud detection, risk management, and knowledge retrieval, which traditionally require human intervention. Subsequently, roles that focus on manual tasks may diminish, leading to a demand for skills in managing and overseeing AI systems rather than performing the tasks themselves. Employees will increasingly require skills that facilitate cross-functional teamwork and communication to ensure that AI initiatives align with the bank’s broader strategic goals.
There will also be a growing need for professionals skilled in data analytics and machine learning, as banks increasingly rely on AI for market trend forecasts and customer behaviour predictions. Professionals will need to be proficient in interpreting complex data sets and utilising AI tools to drive strategic decisions.
With AI’s growing role in banking, the regulatory landscape is also evolving. Staying informed about compliance issues related to AI, particularly concerning data privacy and ethical considerations, will prove crucial. This shift emphasises the need for knowledge in regulatory compliance and risk management, as banks navigate the challenges posed by new technologies. The integration of AI in banking will not only alter existing roles but also necessitate a shift in skills towards data analysis, regulatory compliance, and collaborative practices. As such, ongoing training and development will be critical for finance professionals to adapt to these changes and progress their careers.
Strategies for enhancing employability in finance
In today’s challenging economic environment, those looking to climb the corporate ladder in the finance sector can adopt several strategies to enhance their employability. Keeping abreast of emerging trends and understanding how these innovations are reshaping banking operations can provide candidates with a competitive edge.
For executives in the finance sector, careers can be significantly enhanced through an Executive MBA (EMBA) programme, which is designed to equip experienced professionals with advanced knowledge and skills tailored to the evolving demands of the industry. One notable programme is the EMBA-Global offered by London Business School (LBS), which focuses on global business leadership and strategic management for individuals working at a senior level and looking to take their careers to the next stage.
Founded in the 1960s, LBS opened with the aim of professionalising the country’s management. Today, the EMBA-Global programme, which can be taken on a part-time basis, has been revised to cater to changing market and business needs, allowing students to tailor the programme to their individual needs. Women make up 53% of the most recent EMBA-Global class with 20 different nationalities represented and the school prides itself on admitting exceptional leaders who are looking to learn alongside other talented senior professionals without the need to pause their careers.
Gaining an edge at an executive level
A unique combination of education and experience, the EMBA-Global is an Executive MBA programme that offers a dynamic vision, peer-to-peer networking, powerful insight, and informed perspective for global business leaders. The curriculum addresses contemporary issues in finance, involving real-life projects and case studies to enhance problem-solving abilities and strategic thinking.
Delivered by a world-class faculty, the programme is offered jointly by LBS and Columbia Business School in New York, and upon successful completion of the course, graduates receive two full MBA degrees as well as full membership to both institutions. With the combined expertise of two globally renowned business schools, EMBA-Global alumni also benefit from an extended circle of influence around the world, with professional connections that go beyond traditional networks and often evolve into global ecosystems of collaboration and industry.
In joining this powerful alumni network, students are immersed in world-class experiences in both New York City and London where they can sharpen their instincts, hone their skills, glean expert insight into current trends in finance, develop leadership skills, and gain practical experience; a unique combination that positions alumni at the forefront of business leadership and provides a significant edge in an increasingly competitive job market.
For more information on the EMBA-Global programme download the brochure below.
