Member Update January.
As we look to the year ahead, there are many themes that I am eager to discuss with you, our members. We are making real progress on a number of fronts and it looks like another busy year for us, so I am looking forward to sharing our various plans with you in due course.
But given the current economic climate, I wanted to take this opportunity to address current challenges with the labour market, which I know will be front of mind for many of you. Recent figures from RSM showed that there were 1.2m job vacancies in the UK at the end of 2021, and PwC’s CEO survey demonstrated how these stats are affecting financial services, with 71% of CEOs saying it’s a key concern.
Skills gaps are leaving firms stretched, making it harder to grow and plan for the year ahead. At a broader level, a depleted talent pool, even if temporary, creates a real danger that we will be hampered in our strategic efforts to respond to the big challenges of economic recovery, climate change and changing customer needs.
We are a well-regarded voice on this issue and its one we are engaging consistently with government on. While there is no single solution to this challenge, we have been arguing for some time that greater collaboration is needed to produce more effective skills policy that better matches the labour market and the real economy.
Its in this spirit of collaboration that we have been developing our Skills Action Plan alongside Skills Development Scotland (SDS). Designated into three main pillars – Skills, Career Pathways, and Re-tooling & Upskilling - the plan sets out the proposed recommendations we believe will ensure the industry realises its strategic ambitions. The recommendations are accompanied by measurable actions to help them succeed.
Alongside our work with SDS we are also working with the Young Person’s Guarantee to develop an opportunity plan for the financial services sector. The plan will set out the opportunities in the short (12 months) and medium term (within two years). It will also provide the Scottish Government with insight into the activity and identify any gaps in the support available to individuals and employers.
The plan will consider not only the programmes available but the target demographic, overall impact, and the support they offer, including a focus on diversity and inclusion. Similar to our Skills Action Plan, this will include a series of focused and achievable recommendations.
Our next steps will be to take these proposals to the SFE Board for approval and, subject to that approval, we will take them to the next meeting of FisGAD in April to discuss in detail and invite the First Minister to support.
We will be using the time between now and then to engage further with members, so if you have any thoughts, concerns or insights, or would like to find out how you or your organisation can get involved, please reach out to our Head of Skills & Inclusion, Caitlin Cooke, at ccooke@sfe.org.uk.
With your continued support, I’m confident that we can make the necessary interventions to ensure we remain equipped with the skills and talent we require to shape a better future for all.
Yours sincerely,
Sandy Begbie CBE
Government engagement
The Financial Services Growth and Development Board had its first meeting on 17 January. First Minister Nicola Sturgeon, and Scottish Financial Enterprise Chair, Phillip Grant, are co-chairing the forum. Read more.
Sandy had an intro call with new officials from the Office of Secretary of State for Scotland on 18 January
Sandy spoke with Minister for Business, Trade, Tourism and Enterprise Ivan McKee on 20 January about the banking barometer, the ongoing work around the national economic strategy and return to the office.
Sandy gave evidence to Scottish Parliament’s Net Zero, Energy and Transport Committee on 25 January on the role of local authorities in launching new green initiatives.
Membership survey
As part of our ongoing work to ensure we are providing members like you the best possible experience and value from your SFE membership we would welcome your feedback on how you think we are doing and how we could further develop our activity to provide you with the things that matter to you most. The survey should take no more than five minutes of your time and will help inform 2023 membership activity and the overall membership value proposition. Closing date is 4 February. You can take part in the survey here.
SFE Events
Intergenerational workforce event with Phoenix & IQUAD
SFE is holding a member webinar with Phoenix Group & IQUAD to discuss the challenges and opportunities of intergenerational & ageing workforces with Mary Bright, Head of Social Affairs and Age Special Adviser at Phoenix Group, and Anthony Ginn, Managing Director at IQUAD on Wednesday 9th February from 10am – 11am. Register here.
Networks and initiatives
Unified Schools Programme
We are kicking off our activity in 2022 with a Careers Fair at Royal High School. In partnership with the SFE Young Professionals Network, 4 speakers from across the industry will present to S2 students ahead of them making their subject choices for the next academic year. Find out more about SFE USP here
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Fast Track Programme
Following the successful completion of 6 cohorts and over 100 students, the 1st February will see the commencement of a part-time format of the programme. The course will run for 6 months with 2 evening classes per week and 1 day per week self-directed study. Read more about the updated course here.
We are delighted to be supported on this course by so many of our SFE members, including Tesco Bank, Lloyd’s Banking Group, BNP Paribas, HSBC, and Abrdn.
Chartered Banker young professionals event
Register for Chartered Banker Institute’s Fireside Chat with SFE YP Chair Milly Batchelor and YP firm representative Rory McIntyre as they sit down to discuss their experiences with the Chartered Banker Institute and the SFE Young Professionals network and how involvement in both has advanced their careers. Register here.
SFE Young Professionals newsletter
2021 was a busy year for the young professionals with lots to reflect on. Read about their biggest moments and get all the latest updates for 2022 in their January newsletter, here.
SFE in the media
FISGAD inaugural meeting
The first meeting of the Financial Services Growth and Development Board was reported on by Scottish Business Insider, The Scotsman, Daily Business News, Scottish Financial Review
After another challenging year, Scotland has the ingredients to succeed in 2022
Sandy wrote an article in Scottish Business Insider about what business has learned in 2021 and how we can use this knowledge to mitigate the challenges facing us in 2022 and build a fairer, greener, more inclusive future.
How Scotland's financial services sector can lead the green revolution
Read Sandy’s op-ed in The Scotsman arguing that Scotland must establish itself as a centre of excellence for green finance in the wake of COP26. “We have enviable tools across both sectors at our disposal; a world class talent pool supporting a globally recognised business environment underpinned by a pioneering entrepreneurial spirit”, says Sandy.
SFE responds to return to office announcement
We welcomed the First Minister’s announcement that a return to offices would be allowed, citing the measures businesses had put in place to ensure safe working environments and the benefits to businesses being able to implement their hybrid working plans. Read our full response here.
Industry news
2022-2024 Workplace Equality fund
Applications for the 2022-2024 Workplace Equality fund are now open, which aims to help Scottish workplaces advance their diversity and inclusion agendas. This is a great opportunity for SFE members, who can apply for up to £75,000 of funding for projects and initiatives that demonstrate a positive impact on systematic inequalities in the workplace. If your organisation is interested in being included in the directory, please contact eilidh.harrison@advice.scot at Advice Direct Scotland for more information.
Scottish fintech growth
The Scottish fintech community has now reached 190 small and medium-sized enterprises (SMEs), compared to 147 this time last year, and just 26 firms when the Fintech Scotland started four years ago. Fintech Scotland said its activities have been bolstered by increasing collaboration with 30 “strategic partners”, across financial services, global technology and professional services, academia and the public sector. More here.
EY interim attractiveness survey results
The interim results of EY’s attractiveness survey suggest that Britain is more attractive to overseas financial services businesses “than any time since Brexit.” The poll of senior industry decision makers found that 87% were planning to expand their operations in the UK – the highest since 2016. Respondents noted Britain’s covid-19 response and its strength in ESG as contributing factors. Anna Anthony, UK financial services managing partner at EY, said the poll showed that Britain was continuing to “ably withstand the material challenges and uncertainty of both the pandemic and Brexit”. Read more here.
