In today’s rapidly evolving financial landscape, financial services face immense pressure to resource transformation, whether that’s digital innovation, compliance shifts, or new product lines. External hiring alone isn’t enough: internal mobility, combined with upskilling programs, is emerging as a cost-effective, agile, and retention-focused solution for building a future-proof workforce.
In this article, we examine how financial services firms can establish robust talent pipelines by identifying skill gaps, providing structured upskilling opportunities, and fostering internal mobility through clear career frameworks and enabling platforms. We’ll draw upon industry data, real-world case studies, and best practices tailored to the UK and Irish markets.
Financial services must forecast future skills based on digital growth, regulatory changes, AI/ML adoption, and customer-centric models.
Why Internal Mobility Matters in Financial Transformation
- Retention & Engagement: Employees who move internally are 64% more likely to stay at a company for three years, compared to 45% who don’t. Increased career opportunities lead to higher engagement levels.
- Cost Savings & Faster Onboarding: Filling roles internally is quicker and can be cheaper than external recruitment.
- Preserving Institutional Knowledge: Internal hires retain valuable process and regulatory familiarity, speeding up performance.
Mapping the Future Skills Finance Professionals Need
Financial services must forecast future skills based on digital growth, regulatory changes, AI/ML adoption, and customer-centric models.
- Leading financial services & banks conduct skills criticality assessments to forecast the competencies they’ll demand.
- Common target skills include digital payments, data analytics, compliance (e.g., PSD3, AML, ESG), and AI literacy.
- The World Economic Forum emphasises reskilling at scale to close emerging digital skills gaps.
Building Tailored Upskilling Programmes
- Personalised Learning Paths: AI-driven platforms tailor training plans to each employee’s baseline skill level and career ambition.
- Blended Learning Channels: A mix of e-learning modules, instructor-led sessions, and project-based assignments improves knowledge retention.
- Digital Learning “Factories”: McKinsey identified that banks & financial services now operate in-house learning hubs to upskill and redeploy staff quickly.
- Certification & Micro credentialing: Micro certs in AI, blockchain, and ESG compliance boost credibility and mobility potential.
Structuring Internal Mobility: Beyond Promotions
- Lateral Moves & Secondments: Promote cross-functional exposure through temporary project assignments.
- Career Pathing Frameworks: Define clear vertical and horizontal routes, including skills requirements and competency matrices.
- Agency-wide Mentorship & Cross Skilling: Internal mentors help build confidence across functional competencies.
Overcoming Common Barriers
- Visibility (Employees unaware of open roles): Use talent platforms and regular internal communications.
- Managerial Resistance: Reward “talent exporting” managers to foster a supportive culture.
- Hierarchical Siloes: Encourage cross functional projects and flatten reporting structures.
- Learning Time Conflict: Embed micro learning modules that are time-flexible within day-to-day workflows.
Real World Case Studies
- HSBC & JPMorgan: Launched AI learning academies, enabling finance staff to pivot into data-driven roles.
- European Bank + Tech Alliances: Citi-style innovation labs (e.g., with Microsoft, IBM) act as skill accelerators.
- GCC Revamp: Global capability centres now house advanced analytics teams, supporting transformation and nurturing internal tech finance talent.
Measuring Success
Key metrics to track effectiveness:
- Retention Rates: Compare mobile vs non-mobile employee tenure.
- Time to productivity: Internal hires reach proficiency 20% faster than external counterparts.
- Internal Fill Rate: Monitor the percentage of roles filled internally each quarter.
- Employee Engagement: Gauge engagement via pulse surveys pre- and post-program rollouts.
PE Global’s Role in Powering Financial Services Mobility
PE Global is ideally placed to support this journey:
- Advisory on best practice skills frameworks and future skills mapping.
- Sourcing internal mobility champions, such as HR and hiring managers, who drive cross-functional upskilling.
- Supplementing internal mobility with highly skilled talent to fill skill gaps.
- Benchmarking salary and skill levels for reskilled finance professionals across the UK & Ireland.
Conclusion
A definitive transformation agenda hinges not only on new tech or products but on empowering your workforce. By institutionalising upskilling and internal mobility, financial services can develop agile, future-ready teams which can be bolstered by the right external recruitment. This will significantly drive retention, cultural innovation, and cost efficiency.
Want PE Global to help you design a bespoke internal mobility programme or an upskilling financial services staff roadmap for your organisation? We’d be delighted to collaborate, so contact us today.
