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Read Accenture’s report on the critical shortage of global analytics talent—people with the ability to use statistics, quantitative analysis and information modeling—in the banking industry.
The banking industry faces a new competitive landscape in the aftermath of the financial crisis of 2008. Tighter economic conditions, globalization and technological advances are forcing change, and tougher regulations are imposing more stringent requirements on financial reporting and compliance procedures. And shareholders are demanding that banks address their costs with real structural improvements.
Success in this new competitive market will require deep insight into customer behaviors, astute management of risk and reinvention of the banking business model. All of this will be possible only through advanced analytics. But as new research from the Accenture Institute for High Performance demonstrates, when it comes to analytics talent—people with the ability to use statistics, quantitative analysis and information-modeling techniques to make business decisions—a critical mismatch between supply and demand is looming.
Accenture undertook a yearlong study to gather and distill data on job creation and skills availability in the market for analytics talent to determine whether companies will be able to find the talent they need, where they need it.
The research assessed the size of banks’ dedicated analytics groups in key analytics areas by talking to retail banks, commercial banks, investment banks and central banks—focusing only on their deposit and lending activities. Areas where analytics were used include risk, fraud, credit risk and credit scoring, RFM analytics, reserve analytics, spend analytics, CRM, transactions, operations, marketing, channel management, compliance, prospecting and collections.
After gathering this information, Accenture forecast the number of analytics jobs banks will add from 2010 to 2015, in seven countries: the United States, the United Kingdom, Singapore, Japan, India, China and Brazil.
The banking industry will add about 21,500 new analytics jobs across the seven countries we studied, reflecting an overall expansion of 23 percent from 2010 to 2015. Growth in analytics jobs will contrast sharply with overall job growth in the United States, the United Kingdom and Japan.
In those countries, overall employment growth will be less than 1 percent annually, with growth in Japan as low as 0.2 percent. Banks will add analytics jobs more than four times faster. In the United States, the United Kingdom and Japan, growth in analytics jobs will far outpace overall employment growth.
Even where sufficient supplies of analytics talent are likely—in India and China, for example—employers may find it difficult to locate talent with the specific skills they need. Global businesses need people who understand customers and risks relevant to a specific geographical market.
They must also have a “global mindset” and a talent for cross-border collaboration. However, in emerging markets, those skills are often scarce, and much of the talent that is available lacks relevant experience in the business practices of multinational companies. Each company, and every industry, faces unique talent challenges in different markets. But one thing is clear: sourcing analytics talent will be tough everywhere.
Employers, educators and policymakers everywhere are confronting hard choices about how best to head off shortages of critical talent. These stakeholders can work together to increase the analytics talent supply pool in the following ways:
Finding, acquiring and retaining top analytics talent will require innovative skills and sourcing strategies to address mismatches. Companies that make that investment will achieve a competitive advantage over rivals who find their growth strategies frustrated by a dearth of analytics talent. Banks should begin now to plot their strategy for finding the talent they need to compete and win.
Elizabeth Craig is a research fellow at the Accenture Institute for High Performance in Boston. She is the author, with Peter Cheese and Robert J. Thomas, of “The Talent Powered Organization: Strategies for Globalization, Talent Management and High Performance” (Kogan Page, 2007). Her work has also been published in The Wall Street Journal, Talent Management, Strategic HR Review, Journal of Business Strategy and elsewhere. She holds a PhD from the University of Pennsylvania.
Charlene Hou is a research analyst with the Accenture Institute for High Performance in Boston. She holds a B.A. in Economics from Wellesley College.
Brian F. McCarthy is the executive director of Financial Services Analytics, Accenture Analytics. Based in Atlanta, he leads Accenture’s Financial Services Analytics business in North America and is a member of Accenture Analytics global leadership team. He is a recognized thought leader in the areas of Enterprise Performance Management and Analytics. His work has been published in the Journal of Business Strategy, CFO, Business Finance and elsewhere. He holds an M.Sc. in Statistics from University College Cork, Ireland.
The authors would like to thank Edwin van der Ouderaa and Anton L. Pichler for their contributions to this research report.
May 2, 2013
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