Bridging the skills gap in the financial industry : uncovering the skills that banks require in the future world of work

Abstract

Automation and digital transformation are replacing tasks that are performed by humans, therefore changing the skills that organisations are looking for to cope with the changing environment. The banking industry has also been undergoing this unprecedented change and to meet the challenges that come with the technological advances, they need to improve their skills. This can be realised through education. Qualitative, exploratory research methods were adopted. Twenty semi-structured, in-depth interviews were conducted with executives and graduates employed by the South African banking industry. The findings demonstrated that poverty, inequality, poor access to quality education, a lack of soft skills and practical experience, poor curriculum alignment with industry needs as well as how the skills are taught contribute to the skills gap in the South African banking industry. Programming, machine learning, robotics, coding, analytical and quantitative skills, collaboration, communication, problem-solving, social intelligence and agility were identified as critical hard and soft skills of the future. Experiential learning or learning through simulations were identified as some of the teaching methods that could enhance and equip graduates with practical experience and relevant skillsets. Recommendations on the role that industry and institutions of higher learning should play to bridge the skills gap included collaboration between both parties to ensure alignment in academic curriculum with industry needs, having industry experts in academia, vocational training and internal training provided by employers to upskill or reskill their current workforce. These findings suggest that in order to address the issue of skills gap in South Africa, engagement and collaboration between industry, academia and government will be required. The findings validate the human capital theory which highlights the importance of knowledge in skills development and the contribution of knowledge to the productivity and economic development of the country.