Why Skills, Not Software, Decide Success

DIGITAL TRANSFORMATION IN BANKING powers faster product launches, richer customer journeys and sharper compliance. However, most banks still lack enough digitally-skilled employees to execute their bold strategies. Therefore, boards and Chief Digital Officers face one urgent task: close the skills gap before fintechs do.

Deep-dive: Digital Transformation in Telecoms – what banks can learn.

Exhibit 1: Bank workforce digital readiness by region

Three Findings From Our 200-Bank Survey

Firstly, only 18 % of banks maintain a formally certified, digitally-ready workforce, so talent—not technology—now limits transformation

Secondly, leader banks, concentrated in Europe, North America and East Asia, employ three times more digitally-skilled people than laggards; consequently, the gap widens each year.

Thirdly, Agile, Scrum and DevOps remain the scarcest capabilities—particularly in the Middle East and Africa—so Open-Banking programs suffer delay after delay.

For background on cross-industry lessons, see our article Digital transformation in telecoms.

Exhibit 2: Comparative maturity of workforce digital skills by country

Exhibit 3: Workforce digital-skills readiness vs. bank digital-maturity tier

Skill Density Beats Headcount

Leader banks deliberately build “full-stack” employees who blend cloud, data-visualisation and agile-facilitation skills. Consequently, one tri-skilled staff member can generate up to four times more validated ideas per quarter than a single-skill peer.

Exhibit 4: Average number of digital skills per digitally ready employee

For instance, Starling Bank and Monzo field small squads where UX designers, data scientists and site-reliability engineers sit side-by-side from day one.

Mind the Leadership-to-Frontline Gap

In contrast, lagging banks show a yawning divide between senior leaders and frontline teams. Meanwhile, critical functions such as IT, Strategic Planning and CX feel the pinch most sharply.

Exhibit 5: Gap in digital readiness between junior and senior staff

Which Skills Are Missing?

Exhibit 6: Readiness by skill type and maturity level

Additionally, banks short of DevOps talent struggle to automate testing pipelines, while those lacking API-security specialists delay Open-Banking launches.

Where Functions Fall Behind

Because Technology, CX and Strategy units often trail in skill depth, transformation momentum slows just where it should accelerate.

Exhibit 7: Workforce digital readiness by function and maturity level

Exhibit 8: Share of workforce per function vs. global average

Five Moves for Bank Executive

• First, audit current skills versus the 2027 tech stack, and create a red-amber-green heat-map.
• Next, launch a digital academy that blends vendor micro-credentials with live hack-sprints; as a result, retention rises.
• Then, link promotions to each manager’s upskilling record, so cultural change becomes personal.
• Afterwards, rotate talent through “lighthouse” projects; short, high-impact tours spread modern methods rapidly.
• Finally, report progress every quarter using one composite index that tracks certifications, agile velocity and release cadence.

Act Now—Or Watch Fintechs Pass You

Banks investing today in digital transformation in banking will narrow the skills gap, out-innovate fintech challengers and safeguard margin. Therefore, the next move is clear.

Further reading:

• Forrester Wave™ 2025: Customer-Feedback Management – why automated loop-closure is now table-stakes.
• PWC case study: Engine by Starling: From launching a bank to launching a software business.

To learn more about the strategies employed by digital leader banks, download our white paper: Closing the Digital Skills Gap in the Middle East Banking Industry. Join us on the journey to digital transformation and unlock the full potential of your organization.