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Patching the Tech Talent Gap in Finance

Posted in Insights

The explosion of the digital economy over the last decade has caused banks and other financial institutions to adopt new ways to innovate and increase productivity in an increasingly data-driven enterprise. This is evident by the rapid infiltration of quants and data scientists on Wall Street

In 2015, Business Insider published an article titled, “Goldman Sachs is a tech company,” highlighting Goldman Sachs then-CEO Lloyd Blankfein’s claim that Goldman was really a tech firm, not a bank. A couple years later, Citigroup CEO Michael Corbat said the U.S. bank considers itself a “big technology firm.” That same year, IBM published a report, The Quant Crunch: How The Demand For Data Science Skills Is Disrupting The Job Market, that projects by 2020, the number of jobs for all data professionals in the U.S. will increase by 364,000 openings to 2,720,000.

Fast-forward to present day, and the digital enterprise is continuing on its incredible growth path with no signs of slowing down. According to an August 2018 LinkedIn workforce report, data science skills are rising in demand across industries in the U.S. — resulting in a shortage of professionals with data science skills. As a result, Wall Street is once again looking to new technology to fill the technology skills gap.

JPMorgan introduced in October 2018 mandatory coding lessons for all employees in its asset management division, as well as plans to expand its required tech training in 2019. FT reports the coding training was based on Python programming, which will help employees analyze large sets of data and interpret unstructured data.

Mary Callahan Erdoes, head of JPMorgan Asset Management, told the FT, “By better understanding coding, our business teams can speak the same language as our technology teams, which ultimately drives better tools and solutions for our clients.”

JPMorgan is hardly alone in its approach to teach traders and other employees tech skills to help fill the talent gap. Both Goldman Sachs and Citigroup have reportedly adopted similar programs to train employees on coding.

As the digital economy evolves, we’re excited for new ways finance and tech will work together to drive innovation and unlock the power of data science in the financial services industry.

Learn how Elsen helps large financial institutions accelerate their data-driven strategies by visiting us atelsen.co/.

Jane is Elsen’s chief storyteller and customer advocate, and also quarterbacks the company’s go-to-market strategy.