Some 160,000 financial services workers need their skills upgraded according to a new report which suggests that improving workers could provide an additional £555m a year to the UK economy.

‘People + Technology: How skills can unlock value for Financial Services’, was launched today with industry leaders at Mansion House.

Published by the Financial Services Skills Commission (FSSC), supported by PwC and EY, it said that investment in skills across the industry has failed to keep pace with changing skills needs driven by technological advancements, evolving customer and workforce demographics, and ongoing geopolitical challenges.

Claire Tunley, chief executive of the FSSC, said: “Our report outlines how reskilling, upskilling, and a sustained pipeline of talent can unlock productivity, drive innovation, and meet customer demands, boosting our economy, workforce, and wider society.”

She said the financial services sector must act by reskilling 160,000 people and build sustainable talent pipelines for the long-term.

The analysis found that 73% of one million financial services industry job roles are classified as highly skilled (managerial and professional roles) – up from 52% in 2004. However, 260,000 highly skilled people are expected to leave the sector through retirement and attrition in the next 12 years. 

Chris Box, global workforce risk leader at PwC UK, said: "Closing the skills gap in the financial services industry isn't just about meeting immediate needs; it's about future-proofing our sector. By investing in upskilling and reskilling, we're not only boosting economic output but also fostering a resilient, adaptable workforce ready to tackle the challenges of tomorrow."

The report said there’s an urgent need to ensure technological skills – including AI, cyber and sustainability – are developed in combination with interpersonal skills such as empathy and adaptability.

The FSSC also called on senior leaders to commit to skills being integrated into their organisation’s business strategy, and to reskill 16% of colleagues by 2025 to close existing skills proficiency gaps.

David Storey, partner at EY, said: “Key to driving a lasting impact across the industry will be developing technical and human skills in tandem, strengthening female workforce participation, and creating opportunities for older workers to participate in the workforce for longer.”

The report is the result of 45 interviews with sector leaders, senior stakeholders, and commentators across financial and professional services including both qualitative and quantitative analysis.