Data Snacks, Member Exclusive

Data Snack: Banks may have a ways to go to get more tech talent

  • Banks have been putting a whole lot of effort into getting tech talent onboard.
  • But the salary hikes aren’t doing the trick, it seems, with only 15% of banks’ workforce comprising IT roles.
close

Email a Friend

Data Snack: Banks may have a ways to go to get more tech talent

The road to digital transformation is not paved in brick and mortar. Banks are aware of this. But while they may be putting more efforts into hiring tech talent, their workforce seems to reflect a less-than-digital mode of thinking. 

In a recent report diving into banks’ hiring and onboarding efforts, Josh Bersin Company, a consultancy focused on firms’ HR efforts, found that almost half the roles banks currently employ for are people-facing roles, including customer service, sales and advisory.

This is especially interesting considering the amount of effort banks have been putting into hiring tech talent, including offering competitive salaries and perks.

On top of that, banks have been cutting down on branch operations: 2021 was a record year for branch closures, and 2022 has taken on the same pattern. Curinos, a management consulting company, predicts that banks will continue to shut down their branches at an annual rate of 2% to 3%.

With that in mind, banks’ current top job clusters seem to suggest that they may not be where they want to be in terms of onboarding more tech talent. In fact, despite the salary hikes and perks, banks have experienced a 23.4% turnover rate this year – a significant rise compared to last year’s 16.2%.

One reason outlined by Josh Bersin is that, simply put, the tech doesn’t interest the talent. Fintechs have the advantage of being more cutting edge and offering tech professionals a more interesting stack to work with. Many banks, on the other hand, are still struggling with legacy systems.

So you could say that in order to get more tech talent, banks need to up their tech game. But to up their tech game, they need more tech talent – leaving banks ending 2022 in a state of catch-22.

0 comments on “Data Snack: Banks may have a ways to go to get more tech talent”

10-Q, Member Exclusive

The debt ceiling deal may have saved the US from defaulting on its debt, but where does this leave the stock market?

  • The passing of the bill may have saved the immediate trouble of defaulting but it could be months before investors and the stock market regain their stability.
  • SoFi stock rose nearly 31% in the past week because of the new debt ceiling deal.
Sara Khairi | June 05, 2023
10-Q, Member Exclusive

Who will succeed James Gorman at Morgan Stanley?

  • Morgan Stanley's James Gorman is calling it a day. “No plans to go out like Logan Roy,” the fictional CEO from HBO’s Succession, he says.
  • Wise shares dropped nearly 7% Thursday after the firm announced this week that its CFO, Matt Briers will be stepping down in March 2024.
Sara Khairi | May 30, 2023
10-Q, Member Exclusive

Guilty or not guilty: Deutsche Bank is ready to pay $75 million in Epstein settlement

  • Deutsche Bank hasn’t come clean about its involvement with the Epstein crime. However, the bank addressed the situation by saying that it has strengthened and invested in its anti-financial crime controls.
  • Upstart is up almost 80% in 2023 so far. The news of multiple funding agreements being worked on by the company rebounded the stock nearly 47% in a week.
Sara Khairi | May 22, 2023
Banking, Lending, Member Exclusive

Unlicensed lending, misleading practices, and legal actions: Is SoLo Funds in trouble?

  • Attorney General for the District of Columbia and the California DFPI have penalized SoLo Funds for breaching a number of consumer protection laws.
  • The DFPI also issued a consent order for the Black-owned firm, which is raising eyebrows and more questions.
Sara Khairi | May 17, 2023
10-Q, Member Exclusive

Robinhood’s losses override revenue, PayPal’s stock dips, while Dave delivers more than expected in Q1

  • Everything investors need to know about Robinhood, PayPal, and Dave’s Q1 2023 earnings.
  • Some important fintech stocks are on the path to recovery, while others crashed on Q1 earnings.
Sara Khairi | May 15, 2023
More Articles