In the last ten years, the banking industry has dramatically changed thanks to newer technologies coming into the marketplace. The use of IT in the financial sector services has increased tremendously. It’s not only limited to access of banks online or through mobile but also includes payment systems, automatic fraud detection, and even using blockchains for transactions. All these services have changed how various banks function and relate with their clients.
There is expected to be a rise in demand for professionals that are experts in fintech, cybersecurity, and analytics with the banking tech staffing market growing by over 14.16% CAGR from 2024 to 2032. Also, the use of contract staffing models is increasing in response to specialized skill change, thus this is resulting to an increase in flexible contracting. This post will delve into important technological roles in banking as well as the methods that other financial businesses can adopt to get the best IT employees.
Behind the Scenes: Significant Tech Roles of the New Age of Banking
There is a surge in technological advancement which is greatly improving banking security, efficiency, and customer support. At the same time digital banking, fraud detection through AI, and RegTech is on the rise which creates a greater need for skilled professionals in multifaceted domains such as cybersecurity, cloud computing, data science, and compliance.
Here are some projected technology roles in banking 2025 and beyond.
1. Cybersecurity Analysts
An increase in cyber threats means banks are hiring more cybersecurity professionals to protect delicate financial data. Institutions spend around 13% of their IT budget on cybersecurity, which is anticipated to reach $195.5 billion in 2029 at a CAGR of 22.4%. There is a skills gap, however, it is estimated that by 2025 there will be a shortage of over 3.4 million cybersecurity professionals remaining unfilled worldwide, making them vastly sought after.
2. Cloud Engineers
89% of financial services executives believe that the adoption of cloud computing is transforming the banking sector. Cloud migration from banks is expected to increase since cloud platforms have better security, scalability, and compliance. With Microsoft’s Azure estimates projecting the cloud banking market to reach $230 billion by 2032, the importance of possessing cloud-related skills becomes pivotal for these institutions.
3. Data Analyst and AI Specialists
Financial institutions are using big data, AI, and machine learning for fraud detection, excessive risk analysis, and client personalization. Advanced Artificial Intelligence engineering could save up to $1 trillion to financial institutions by 2030. With a shortage of AI engineers, the demand surpasses the supply. As more and more data driven decision making tools emerge, the need for data analysts and AI professionals will drastically increase.
4. Software Developers
The software market for the global banking system is estimated at $35.88 billion in 2022 and is expected to grow at a CAGR of 6.2% till 2030. With the increasing investment by banks in mobile applications, AI Servicing, blockchain, and cloud, there arises a demand for skilled developers to provide secure and flawless digital banking solutions.
5. IT Compliance Officers
With the advancement in data privacy and cybersecurity laws, IT compliance officers have become vital parts of the workforce as they ensure banks follow the requisite guidelines. As financial institutions embrace cloud, AI, and blockchain technologies, compliance experts are essential in safeguarding institutions against risk and breach of security.
These trends underscore the dynamic nature of tech staffing in banking, highlighting the industry’s efforts to adapt to technological advancements and changing workforce expectations.
Using Talent for Efficient Tech Staffing Strategies for Success
The steep rise in demand for new technology employees, existing skill gaps, and stiff competition from Fintech Companies and Big tech companies have all contributed towards the challenges and difficulties of staffing for technology related jobs in the banking sector. Financial Institutions need to constantly shift their approach and embrace these changes fully accept to remain competitive in the industry. The following strategies can be helpful.
1. Working with Dedicated IT Recruitment Companies
Over the years, specialty high tech head-hunter firms have emerged, and their sole focus is on providing banks with fully trained and ready to go specialists in information technologies especially banking IT. These agencies enable banks to fill open positions more efficiently, minimizing the time spent on cumbersome recruitment procedures.
2. Allocating Resources Towards Retraining and Development
Instead of always looking for outsiders, the banking sector may invest in increasing the competencies of their current personnel in AI, Blockchain, and Cyber Security. With greater investment in continuous education, organizations can make their workforce more mobile, lessen the recruitment expenditure, and encourage innovation.
3. Using Remote and Freelance Employment Options
For greater flexibility, banks also began adopting remote freelance employment options. Such flexible specialists allow for scalability of work across various projects, while remote staff allow for unrestricted sourcing of talent.
4. Creating an Effective Employer Brand
The leading employees in technology look for employers who can provide opportunities for personal advancement and innovation alongside a good workplace atmosphere. Banks that emphasize potential employee success stories, provide competitive advantages, as well as professional development opportunities will engage with premium talent.
Final Thoughts
The battle for the rare breed that is tech talent in banking is tough. However, if financial institutions implement these approaches, they will be able to cultivate a skilled workforce for the future. Banks can now get access to expert IT personnel with specially designed hire models: contracts, offshore, and even leadership support staffing provided by skilled staffing companies such as Stride Digital.
Stride Digital focuses on augmenting the staff, extending the teams, or even hiring them out on contracts, which allows the banks to effectively manage the number of employees in relation to the high level of IT service provided. We provide innovative, agile, and business-oriented staffing solutions whether financial institutions are looking for highly qualified developers, information security professionals, or senior strategists in the field of IT.
Contact us today if you need help with tech staffing. www.stridedigitalpartners.com
