Source: ONS Labour Force Survey 2007

For data on the demand for different qualifications in the sector see:

The sector spends about 3.4% of its annual wage bill on employee training. Projected to current earnings in the sector, this is equivalent to about £1.6 billion. FSSC research suggests that, once the implied costs of in-house skills provision and management time are factored in, the true investment in skills rises to more than three times that total. This, however, is still short of skills spending in other related sectors, most notably accountancy.

Training is usually delivered ad-hoc, especially in smaller organisations, and a lack of time and resources can often restrict employers’ ability to deliver structured training. Employers generally prefer the flexibility of a dedicated in-house training provider, but they will turn to external specialists for training in areas, such as soft skills, in which it is not cost-effective for them to develop expertise.

Generally, employers are convinced that training contributes to personal performance and motivation, although, unlike other sectors, turnover is not substantially affected by the offering of learning opportunities. FSSC research suggests that management competence, especially the ability to manage people and relationships, is a strong catalyst for the effectiveness of training.

Source: FSSC The Skills Bill: Assessment of education and training provision in UK financial services 2007

For more data on training, outcomes and providers see:

Increasingly, a university degree is becoming the minimum requirement for entry-level roles in much of the sector. In wholesale banking, for instance, graduate recruitment is a highly structured and highly competitive process.

Employers tend to recruit from a small number of elite universities. Although no disciplines are considered irrelevant, firms tend to prefer applicants with proven quantitative skills. The emphasis on high-level numeracy and previous work experience, in particular, are driving increasing level of post-graduate recruitment.

Sources: Graduate skills and recruitment in the City 2006 and HESA Destination of Leavers from HE Survey 2005

For more data on graduates in the sector see:

Although in the past it was often possible for people to enter financial services with few formal qualifications, a university degree or professional qualification is now generally a prerequisite for entering most high-value added roles in the sector. In response to increased specialisation in the sector, the demand for postgraduate education is also growing very rapidly.

Staff are required to have adequate technical knowledge demonstrated through Appropriate Examinations in order to perform a particular controlled function. Controlled functions are activities that, due to their potential impact on financial stability and consumer confidence, are required by the Financial Services Authority to be performed by individuals (known as approved individuals) who can demonstrate a high level of industry, product and regulatory knowledge. Most of the demand for Appropriate Examinations, however, is derived not from regulatory concerns, but from the industry's confidence in the exams.

Level 3 vocationally related qualifications (VRQs) and professional qualifications also have a great deal of currency with employers. Both employers and workers typically use these to aid career development.

Source: FSSC survey of awarding bodies 2008

For more information on National Occupational Standards see:

Just as higher value-added sectors, such as wholesale banking and asset management, will shape the sector’s future, so will the need for higher-level qualifications shape demand for qualifications in financial services.

The sector derives little benefit from lower-level skills and will divest these to a great extent; demand will shift instead towards level 4 - 6 qualifications. This change will be fuelled by increased demand for higher qualifications among managerial, professional and technical roles, as well as by a massive upskilling of the sector’s administrative and customer service workforce.

The shift to activities and roles with high added value will be accompanied by a shift to higher levels of qualifications attainment. The focus of attainment will finally shift from NQF level 3 to levels 4–6 (SCQF 7–10), while the fastest growth in demand will be recorded for qualification offerings at levels 7 and above. In professional and vocational education, the most likely developments in the near future are:

• Strong demand for financial advice qualifications due to the FSA’s Retail Distribution Review and possibly due to the outcomes of the Thoresen Review.
• Slowing demand for qualifications in corporate finance and wholesale banking while market conditions remain difficult.
• Strong demand for qualifications and skills in pensions and investment, retirement planning and long-term care qualifications, in response to changing consumer demographics.
• Easing demand for mortgage advice qualifications due to a less buoyant property market.
• Rising demand for compliance qualifications, due to evolving principles-based regulation and employers’ efforts to upskill the middle and back office.
• Stronger demand for qualifications which have currency outside the UK due to globalisation of key sectors, especially asset management and its distribution channels.

Sources: FSSC survey of awarding bodies 2008 and Working Futures 2004-2014