Attracting and retaining talent remains key concern in banking: KPMG Report

Majority banking leaders across the world say they would be willing to reward employees who made effort to return to office

Attracting and retaining skilled talent remains a concern in the banking sector when it comes to transforming business to be more technologically driven, believes industry leaders, according to the latest Banking CEO Outlook 2024 report by KPMG.

 

The survey, which gathered insights from 120 global banking leaders, found that despite navigating significant challenges such as talent shortages, cyber security threats, and the evolving economic landscape, chief executives of banking sector remain optimistic about the sector’s growth potential. This optimism is largely driven by emerging technologies, particularly generative artificial intelligence (GenAI), which banking leaders globally see as critical to business transformation. 

Here are the key findings from the ‘Banking CEO Outlook 2024’ report by KPMG

 

Banking CEO confident in capital markets growth

Two-thirds, or 66 per cent, of banking CEOs expressed confidence in the banking and capital markets industry's growth prospects over the next three years. Additionally, 68 per cent are optimistic about the global economy's outlook, despite ongoing geopolitical and macroeconomic uncertainties.

 

Gen AI top investment priority in banking

A striking 81 per cent of respondents identified Gen AI as a top investment priority, viewing it as central to technological advancement and organisational transformation. Moreover, 76 per cent acknowledged that experimentation is crucial for unlocking Gen AI's potential and have encouraged employee participation in these initiatives.

 

Skill gap - biggest hurdle in business transformation

Attracting and retaining skilled talent also remains a pressing issue within the banking sector. With technology-enabled transformations at the forefront, 66 per cent of CEOs believe their organisations are well-prepared to upskill employees to harness the benefits of Gen AI. Yet, the competition for specialised talent in areas such as AI, cyber security, and environmental, social, and governance (ESG) remains fierce.

 

Additionally, 92 per cent banking CEOs expressed a willingness to reward employees who make an effort to come into office.

 

Cybersecurity concerns - biggest threat to business

Cybercrime and security risks were identified as the most significant threats to organisational growth, with 81 per cent of CEOs listing them as a primary concern. The integration of AI for fraud detection, faster data analysis, and enhanced productivity are among the strategies banks are leveraging to mitigate these risks.

 

After cybersecurity, the cost-of-living crisis (80 per cent) and evolving trade regulations (73 per cent) were flagged as critical challenges over the next three years.

 

Long term returns in sustainability investments

ESG continues to be a vital focus, with 58 per cent of CEOs expecting substantial returns on their sustainability investments within three to five years. Banks increasingly view ESG as a cornerstone for long-term growth and responsible business practices, the report said.

 

Commenting on the report findings, partner and head of consulting at KPMG India Hemant Jhajhria observed, “It’s encouraging to see confidence from industry leaders in the outlook of the global banking sector, as well as their proactive and positive inclination towards adopting emerging technologies like Gen AI. Banking CEOs seem to be focused on accelerating their digital transformation.”