The future of finance: Key trends and workforce challenges in 2025
The finance sector – on the one hand seen as a high-stakes world of wealth and risk, on the other as a driving force in creating prosperity and stability, is facing a wave of change! Disruptive forces are altering the global landscape.
From economic pressures and shifting labour dynamics, to digital advancements and evolving regulations, change is influencing how companies in this sector operate and compete. As a result, finance sector leaders are examining workforce strategies and rethinking business priorities that balance transformation, cost savings and reduced risk.
Looking ahead, most UK employers in this sector (79%) anticipate they will still struggle to find the skilled talent they need in 2025.
Here are four key finance industry trends to help organisations stay up to date and meet challenges head on in 2025.
#1 The impact of rate cuts
The European Central Bank (ECB) and the Bank of England are expected to cut rates more aggressively in 2025. Banks, who have enjoyed several years of strong profits when interest rates were high, will see their profitability decline. Most large financial institutions (77%) say non-interest expenses such as wages have grown faster than revenues since 2022. Adapting to a low-growth and low-rate environment will be a challenge. Managing workforce costs will be a key C-suite priority in 2025 and high on hiring managers’ agenda as they will naturally remain cautious.
#2 Riding the AI wave
The financial services industry is witnessing a significant surge in global AI adoption. In 2024, 62% of financial sector employers in the UK reported using conversational AI business tools compared to just 35% in 2023.
From enhancing operations and streamlining customer service, to strengthening risk management, the growing embrace of AI promises organisations improved efficiency and accuracy. In fact, one study reveals that AI could enable up to 40% worker productivity gains.
However, there’s an optimism gap about AI between senior leaders and frontline workers. While well over two thirds of senior leaders feel optimistic about AI, that figure drops to just over half for frontline workers, who don’t always feel they have been given the right training to manage these tools.
As AI adoption accelerates organisations need to make sure they have initiatives in place not only to address worker scepticism but also to ensure the right skills are taught so that AI works for all.
#3 Innovation through CX
Innovation is increasingly centred around enhancing customer experience (CX). Consumers are looking for more personalised value and convenience. However, financial sector employers around the world say talent with IT and data skills are the most difficult to find. As tech innovation continues to accelerate, competition across industries for the limited supply of skilled tech talent needed to improve digital CX will grow.
Now is the time to leverage standardised strategic workforce planning processes at scale, to help mitigate cost and close the skilled talent gaps, ensuring your organisation has the employees, skills, and knowledge needed to meet current and future business goals.
#4 The growth of offshoring
With advancements in technology and communication, financial institutions are increasingly able to outsource complex tasks and processes to offshore locations that offer competitive advantages in terms of labour costs and expertise. In Latin America alone, foreign investment has helped the finance sector grow 340% since 2017.
This trend has enabled firms to streamline operations, improve service delivery and focus on core competencies. There are, however, growing EU concerns. Since 2022, the European Central Bank (ECB) has collected annually the outsourcing registers of all its supervised banks. They estimate 10% of audited contracts covering critical functions are not compliant with the relevant EU regulations. This increased regulatory scrutiny underscores the importance of working with business partners that comply with all relevant market regulations.
Global talent sourcing will continue to grow as the financial sector seeks business and cost efficiencies, but skills and local workforce readiness vary widely across markets. By employing tools such as the Total Workforce Index™ business leaders can choose the best fit for their business needs.
Conclusion
The finance sector is at a pivotal moment, shaped by economic shifts, technological advancements, and evolving workforce demands. As businesses navigate rate cuts, AI integration, customer experience innovation, and global talent sourcing, strategic workforce planning will be key to staying competitive. Addressing skills gaps, investing in AI training, and ensuring regulatory compliance will help financial institutions turn challenges into opportunities. By embracing change and adopting a forward-thinking approach, the industry can build a resilient and future-ready workforce in 2025 and beyond. To find out more about the upcoming trends in the finance sector, take a look at our Global Insights report: UK Financials & Real Estate Industry World of Work 2025 Outlook.
