Banking’s talent crisis: why your EVP is failing (and how to fix it)
The financial industry is haemorrhaging talent, with outdated EVPs failing to attract the modern workforce. Learn why competitive salaries alone no longer cut it and how banks can rethink their talent strategies to stay ahead.
The financial industry in 2025 is facing a reckoning. Banks are haemorrhaging talent, struggling to attract the right people, and clinging to outdated employer value propositions (EVPs) that no longer hold water. If your EVP still touts “competitive salaries” and “make an impact,” you’re already behind.
The landscape has changed. The workforce has changed. And banks that fail to evolve will be left scavenging for the scraps of top-tier talent.
A Talent Market on the Brink
The banking sector is staring down a skills crisis, particularly in compliance, data privacy, and governance. A recent study shows that 87% of organizations cite unrealistic salary expectations as a hiring barrier, while 47% struggle with unqualified applicants and 40% find industry experience lacking. Translation? The right people either don’t exist or they don’t want to work for you.
And it’s about to get worse. According to The Business Times, 2025 is witnessing waves of layoffs in tech and financial services. Firms like HSBC and Deutsche Bank are streamlining operations to cut costs. But here’s the rub: cost-cutting doesn’t solve the talent problem, it makes it worse. Retrenchments damage your employer brand, making it harder to attract the very talent you need to innovate your way out of trouble. For a deeper dive into how AI is reshaping the talent landscape, check out this article from Employer Branding News.
The global workforce is shrinking. Aging professionals are retiring faster than new talent can replace them. The war for talent is no longer an overused metaphor, it’s a brutal reality, and the once untouchable banks are losing ground.
The firms that crack this problem first won’t just attract top talent. They’ll own the industry’s future.
Business Strategy Has Outpaced Talent Strategy
Banks love a good transformation plan, but too often, they forget one crucial thing: change means nothing without the right people to execute it.
Take DBS Bank in Singapore. It’s pushing digital transformation, investing in AI-driven banking services and cloud technology. But to maintain its tech-first status, DBS needs data engineers, cybersecurity experts, and AI specialists, talent that’s in high demand across industries. DBS has responded by building in-house tech academies and hiring talent from fintech startups.
Or consider ICICI Bank in India. With the rise of digital lending, ICICI has bet big on automation in credit approvals and risk management. But finding professionals who understand both finance and AI is tough. To tackle this, ICICI has partnered with universities to create custom training programs, ensuring it builds rather than borrows talent.
MUFG in Japan is navigating an aging workforce while expanding into Southeast Asia. The bank is rethinking its EVP, offering employees international mobility and leadership opportunities in emerging markets like Indonesia and Vietnam.
Then there’s HSBC, which is cutting costs by $1.5 billion and consolidating its investment banking arm. CEO Georges Elhedery wants a “simpler, more agile bank.” Nice idea, but agility doesn’t come from layoffs. It comes from hiring people who can move fast and innovate, something that’s harder to do after public retrenchments.
Bottom line: banks are setting bold business goals but treating talent like an afterthought.
Fathom Talent Attraction
Fathom provides rigorous research, evidence-backed strategies, and data-driven employer branding - from EVP to delivery.
A Modern EVP: What Actually Works
Banks need to stop dusting off old playbooks and rethink what they offer talent. Here’s what could move the needle in 2025:
- Ditch the Buzzwords, Focus on Real Skills
Automation, AI, and machine learning aren’t the future; they’re the present (which is more than can be said for most banks’ EVPs). The firms that integrate tech seamlessly into their workforce will become more attractive to top talent, who want to spend less time on mundane task and more on high-value, interpersonal, and growth-related aspects of banking. This isn’t necessarily the same old innovation train coming back around, we’ve all ridden that familiar old ride, this is a much newer, shinier train with more comfortable seats. - Diversity Isn’t Optional, It’s Survival
The old boys’ club in banking is gone. Banks that still fail to prioritize real humanity, let alone equity, diversity, and inclusion will increasingly struggle to attract fresh young talent – or, in other words, the talent with the modern skillsets they need. They’ll also lose the battle for innovation - because diverse teams eat homogeneous teams for breakfast where being innovative is concerned. - Money Talks, Career Growth Shouts
Banks are well known for throwing money at the talent problem, yet nearly 50% of banking professionals are considering leaving due to poor leadership and a lack of career progression. Data from talent researchers like Fathom and Universum show that banks already have a natural association with being good payers, so there’s little need for them to keep highlighting it unless they pride themselves on being the very best payer (not an honour many people want to shout out loud). There is no doubt that salary is super important, but it won’t fix a culture where employees feel stuck. A clear, structured career path that isn’t riddled with fears of layoffs is what’s needed here. - Work-Life Balance Is Non-Negotiable
Are you a J.P. Morgan or a Deutsche Bank? When it comes to remote work, banking is becoming a story of the Haves and the Have Nots. Guess which side attracts the best talent. Remote work isn’t radical, it’s what people expect. Case in point: Lloyds Bank, which offered employees the option to work remotely or relocate after closing offices. The message? Adapt to employees’ needs or watch your talent pipeline dry up.
Time to Get Serious About Talent
Like many industries going through change, banking is at a talent crossroads. The firms that treat talent strategy as business strategy will dominate the future. The ones that don’t? Their enviable positions will start to slip. It won’t be long before they’re wondering why they can’t hire anyone worth keeping.
The question is: Is your EVP still relevant or just a relic of the past?
Takeaways
Why are banks struggling to attract talent?
Competition from tech firms, a shrinking global workforce, and changing employee expectations are key factors.
How do layoffs impact employer branding?
Layoffs damage a bank’s reputation, making it harder to attract skilled professionals and reducing morale.
What skills are most in demand in banking?
Cybersecurity, data privacy, AI, and automation are critical, along with traditional finance and compliance skills.
Why is diversity crucial in banking?
Diverse teams are more innovative, helping banks stay competitive in a fast-changing industry.
How important is career growth for retaining talent?
Career growth is essential, with many employees citing poor leadership and limited advancement as reasons for leaving.
What role does remote work play in attracting talent?
Flexible work options are now expected, with banks offering hybrid models seeing higher retention and attraction.
What’s the first step to modernize an EVP?
Start with an honest audit of your current EVP. Align it with the skills and values today’s workforce truly values.
Did you enjoy reading this? Elevate your employer branding game. Subscribe for more fresh content and expert insights - it's free!
EBN Jobs - Global Employer branding Roles
Let’s be real: a great employer brand is about more than quirky seating and trendy perks. Your next career move should be built on substance—where your strategy defines the culture, not the furniture.
Ready to make a real impact? Join Employer Branding Jobs and discover roles where strategy matters more than style.
Comments ()