Specialist finance sector

Is the specialist finance industry facing a skills shortage?




The specialist finance sector could face a skills shortage similar to the one currently experienced by the construction industry, according to Jo Breeden, managing director of Crystal Specialist Finance.

Across the globe and in multiple sectors, businesses are reporting that they are facing skills shortages.

Almost half of businesses in Asia, Europe and North America (49%) reported that skills shortages were the greatest challenge they faced, according to Bibby Financial Service’s Global Business Monitor.

The construction sector in the UK has been concerned over access to skilled labour for some time.

A Q1 2017 Royal Institution of Chartered Surveyors (RICS) survey revealed that 53% of respondents stated that the shortage of skilled labour was a key impediment to growth.

Could the specialist finance market be impacted?

“There is no doubt that we work in an ageing industry, and unless we are careful and attract the new generation of financiers, we may find ourselves looking at a skills shortage crisis akin to that currently engulfing the construction industry,” said Jo.

“First and foremost, the outgoing perception of the finance industry has to change, it is a fast-moving, challenging and vibrant sector, but it can be seen as old fashioned.

“Second, we are moving towards a far more technically advanced future – both for those in the industry and our customers – and younger people are far more adapt in this area.

“And third, we have to pay well, educate and look after our staff, people looking to enter the industry are after a long and fruitful career and not a day job.”

Enness Commercial’s specialist lending team has an average age of 26.

Chris Whitney, a senior broker at the firm, said: “While there are lots of young faces within the specialist lending industry, we are yet to see any significant individuals in terms of ‘industry leaders’ in my view.

“It also reminds us that while the specialist lending market has undergone huge changes over the last few years, it is actually a very mature market, with key players being involved for decades.”

Lucy Hodge, managing director at Vantage Finance, said some young hires found it difficult to get into this fast-paced environment due to the pressure.

“There is no point trying to shield them from that either in the short term, because it is what it is.

“If the early signs of coping are there, then it's all about training and support.

“At Vantage, we have put many of our entry-level recruits through a mixture of CeMAP crash courses, apprenticeship schemes and internal training to give people the best chance of success.”

Chris though felt that there was nothing to stop younger, intelligent and motivated individuals from joining the industry.

“However, I think there is still a desire from many employers to seek experience over youthfulness and people tend to stumble into the industry rather than making it a career choice, despite the potential for career progression and remuneration.

“A point always debated within the sector is the relative lack of formal professional qualifications and opportunity for continuous professional development.

“Often debated, but still a point we have yet to see any action on from industry bodies.

“I think if we saw progress here it would help the younger generation to shine.”

Leave a comment