More than 20 financial services organisations have signed a new agreement with government aimed at tackling skills shortages, expanding talent pipelines and preparing the sector for the growing impact of artificial intelligence.
The Financial Services Skills Compact will be formally launched by the Chancellor during her Mansion House speech today, marking a joint commitment between government, the Financial Services Skills Commission and employers to address long-term skills challenges across the industry.
Twenty-two organisations have signed the agreement, representing high street banks, building societies, insurers, investment managers, digital banks and trade bodies. Together, the signatories employ more than 250,000 people.
The initiative follows the publication of HM Treasury’s 2025 Financial Services Growth and Competitiveness Strategy, which identified skills development as a key priority for maintaining the UK’s position as a global financial centre.
Under the agreement, participating organisations have committed to strengthen investment in workforce development, particularly in artificial intelligence and other critical skills. They have also agreed to expand structured entry routes into the sector, appoint a senior executive with responsibility for addressing skills gaps and publish annual updates on their progress.
The financial services sector employs around one million people across the UK but continues to face increasing pressure from technological change, demographic shifts and changing customer expectations.
Rachel Blake, economic secretary to the Treasury, said: “The Skills Compact is a central part of our ambitious plans to address skills gaps, including more investment in critical skills and getting more people into financial services. The backing of more than 20 organisations is a significant opportunity to deliver the workforce skills that are fundamental to the UK sector’s competitiveness, innovation and global leadership.”
Mark Hoban, chair of the Financial Services Skills Commission, said: “Financial services is facing unprecedented disruption from AI and other technologies. Firms and the Government need to respond positively to this if the UK is to remain a world leading financial centre.
“We welcomed HM Treasury’s commitment last year to putting skills at the heart of the Competitiveness and Growth Strategy and today’s successful launch of the Skills Compact is the industry’s response to this challenge.”
Claire Tunley, chief executive of the Financial Services Skills Commission, said: “The Financial Services Skills Compact is the most significant agreement on skills between government and employers in a generation. Its timing couldn’t be more important. The sector is at a pivotal moment; it needs to close skills gaps by focussing on upskilling and reskilling its own people, building a pipeline of new talent, and promoting a culture of continuous learning.
“These early signatories are taking the lead, embracing highly ambitious commitments that will benefit at least a quarter of a million employees. The fact that more than 25 organisations have already signed the Skills Compact, including some of the largest firms in the UK, signals the importance of skills to productivity and economic growth.”
Kate Bell, assistant general secretary at the TUC, said: “We welcome the launch of the Financial Services Skills Compact. The UK has long suffered from underinvestment in skills and training, so it is encouraging to see employers in financial services committing to invest in their workforce.
“AI is set to transform jobs across the economy, bringing huge opportunities but also significant challenges. Workers must be supported through this transition with access to high-quality training and opportunities to develop new skills.
“The most successful workplace training starts with listening to workers to understand their needs and co-design learning programmes. By working together, employers, government and unions can ensure that technological change improves jobs, boosts productivity and raises wages.”
