How technology and automation are impacting careers in finance

As business deliverables grow, along with the volumes of data and information at our disposal, there is an intensifying pressure across all industries to work better and quicker.

The finance industry is no different and businesses are looking to embrace any tools or technology that will save them time and money. Automation and technology, such as Artificial Intelligence (AI), are not new in the sector. For example, in retail banking, organisations have been harnessing AI systems to meet ever-growing regulatory demands.

Despite fears that evolving technology may make the talents that humans can offer less desirable or even obsolete, it has in fact made those with strong communication skills, an understanding of how to work with complex systems and experience in strategic roles, in much higher demand.

AI is shifting the goal posts

As AI technology has developed, it has been applied widely to the finance industry and has driven profound changes in banking, insurance and capital markets. Its exponential growth can be seen clearly in the finance risk market, where algorithms are being used to identify and predict fraudulent activity.

Whilst AI and automation may replace certain job functions, these are largely those involving repetitive and tedious processes. Therefore, they free up employees’ time to work on more strategic projects.

Take China’s finance sector as an example: the World Economic Forum estimates that by 2027, about 2.3 million people will be affected – 22 per cent of the sector’s total workforce. They believe that the remaining 7.6 million people - those who need to solve complex problems and respond to emotional interactions or random changes in the environment - will not be replaced by AI. Instead, they will be able to increase their working efficiency by using AI.

The necessary infrastructure

It is easy to assume that the work of AI and automated systems will simply replace human functions, but what is often overlooked is that these systems can only perform tasks or processes within defined parameters, usually set by a human. In short, they are only as good as the information they are fed.

This is why, before any organisation can even think about harnessing new technology, most will need to evaluate their current operations or even overturn systems.

Companies will only benefit from new developments if the necessary framework and processes are in place to cope with more complex data.

Finance professionals often work across multiple departments, allowing them to see the potential ramifications that new developments will have on the organisation as a whole. This is where being able to communicate these implications to business leaders in a coherent way becomes crucial.

Strategic business advice

In recent years finance roles have become increasingly focused on the ability to tell the story behind the numbers and, as we have previously explored, being able to communicate clearly to non-finance team members is becoming a highly-sought attribute in candidates.

For many businesses, the role of finance departments is shifting from ‘number crunching’ to financial analytics and forecasting, strategic risk and resilience, compliance and control, and better overall data-driven financial management.

In an EY study, 67 per cent of finance leaders said improving the partnership between finance and the business is a major priority.

But of course, this is dependent on freeing people from repetitive tasks, to focus on the higher-value, strategic work.

As a finance professional, staying up to date with the ever-changing innovations in your industry, seeking out opportunities to expand your skill set, and improving your communication skills will ensure that you remain an attractive candidate and are able to grasp these new opportunities with both hands.

If you need to attract new talent, we are experts in navigating the jobs market and helping you to secure the best candidate around – get in touch with our team today: https://www.robertsonbell.co.uk/