Financial services firms are investing in employee learning at a faster rate than almost any other sector in the UK, helping to tackle one of the economy’s most persistent skills gaps, a new report reveals.

The Financial Services Skills Commission’s latest research, Positive progress? Skills for the future of financial services 2025, shows that while demand for technical expertise remains high, significant steps are being made to close the gap in critical areas such as artificial intelligence, data analytics and software development.

Government data cited in the report confirms that financial services is one of only two sectors where per-employee spend on training has increased, despite an economy-wide decline. This underlines the strategic priority being placed on skills development across the industry.

Data and software roles continue to be the hardest to fill, but firms are beginning to see results from sustained investment in learning. For the second consecutive period, the report highlights rising demand not only for technical skills but also for behavioural competencies such as coaching, signalling a broader understanding of the skills mix required for the sector’s future success.

CHANGE IN APPROACH

The research also points to a shift in how firms approach learning. Around 57% of training is now self-directed, following efforts to simplify personal development and move away from a heavy reliance on mandatory training. For the first time, the report includes analysis of ‘active learners’ as a key measure of success, rather than simply counting the number of training hours completed.

The sector’s rapid adoption of skills-based hiring has further distinguished it from other industries, indicating a broader cultural shift towards valuing capability over traditional qualifications.

Claire Tunley, chief executive of the Financial Services Skills Commission, said: “While the sector’s skills gap remains a challenge, the green shoots of progress give us confidence for the future. Excellent progress is being made to put skills at the heart of business strategy and firms are taking purposeful action to close skills gaps.

“Despite these positive signs, we cannot become complacent. Our efforts must go further and faster, and firms need to continue scaling their efforts at pace. By continuing to work in positive collaboration, we can ensure that the sector has the talent and skills it needs to drive productivity and growth.”