THE BANKING INDUSTRY, long regarded as a cornerstone of the global economy, is facing unprecedented challenges in the digital era. While disruptive forces reshape industries across the board, the banking sector struggles to keep pace with the digital transformation imperative. Despite its susceptibility to disruption, many banks are relatively poorly skilled for the digital revolution they need to undergo.

Across the global landscape, the financial services sector, including banking, ranks below leading industries such as ICT, Media, Professional Services, Aviation, and Manufacturing in terms of workforce digital skills readiness. This deficiency highlights a critical gap that banks must address to stay competitive in the digital age.

The urgency for digital transformation in banking cannot be overstated. While sectors like IT, telecom, and media have made significant strides in digital maturity, the financial services sector, particularly retail and commercial banking, remains on the cusp of disruption. Every day that banks delay strategic digital change, they fall further behind in an exponentially advancing digital landscape.

Our survey reveals a mixed landscape of digital skills adoption within banks. While certain skills like Agile, SCRUM, DevOps, and Design Thinking enjoy higher adoption rates, others such as digital channel management, cybersecurity, cloud, and digital marketing lag behind. This discrepancy underscores the need for a more comprehensive approach to digital up-skilling across all functions of the organization.

Interestingly, senior executives in banks tend to exhibit higher digital skills compared to the rest of the workforce, indicating a top-down approach to digital transformation. However, new hires outshine long-tenured employees in digital skills readiness, signaling a pressing need for re-skilling and up-skilling initiatives within banks.

When examining digital skills readiness by function, IT, strategic planning, and customer experience emerge as frontrunners, while core functions like bank operations, procurement, finance, and accounting trail behind. This disparity underscores the importance of integrating digital transformation efforts across all facets of banking operations.

The imbalance in digital skills distribution within banks underscores the early stages of their digital transformation journey. To overcome this challenge, banks must adopt a holistic approach to digital upskilling, encompassing all functions and levels of the organization.

In conclusion, bridging the digital skills gap in banking is imperative for navigating the challenges of the digital age. By prioritizing digital up-skilling initiatives and fostering a culture of continuous learning, banks can position themselves for success in an increasingly digital-centric world.

To learn more about bridging the digital skills gap in banking and unlocking the full potential of your organization, access our white paper: Closing the Digital Skills Gap in the Middle East Banking Industry