For some banks that are investing in their technology workforces, training existing talent has become a useful alternative to recruiting externally.
Training employees in new technologies can be cost effective, decrease attrition and fill a need for banks that are increasing their tech appetite. A 2022 Cornerstone Advisors report said that cloud configuration, server virtualization, API integration and cloud security were key areas for tech talent at banks. Bank executives are also prioritizing training and upskilling to meet their cloud labor needs, the report said.
Although economic strain on the tech sector in 2022 has provided an opportunity for banks to scoop up laid-off technologists, bank leaders and consultants said teaching existing employees is also important to developing a tech workforce.
Jason Strle, chief information officer and head of enterprise functions technology at Wells Fargo, said the bank is working on certifying its engineers in cloud administration to aid its current cloud migration with Microsoft Azure and Google Cloud. Strle added that reskilling also helps recruit external technologists who want to work with more skilled teams.
“The talent that we add, the talent that we develop, that is a self-fulfilling cycle,” Strle said. “The more that we’re adding the talent, the more that we’re developing the talent that we already have, that creates a workforce that wants to work with strong talent, and expects to work with strong talent.”
Wells Fargo spends between $9 billion and $10 billion on technology across the firm. Last year, the San Francisco-based company announced plans to hire 2,600 technologists, and currently has about 1,500 open tech roles, primarily in software engineering, systems architecture, product management, user experience and artificial intelligence and machine learning, the company said in an email.
Ken Meyer, chief information and experience officer of digital channels and innovation at Truist Financial, said banks have historically been seen as integrators of technology instead of as developers or engineers. He said the Charlotte, North Carolina-based bank has invested in training folks on more modern platforms and with cloud technology, and has partnered with external teaching organizations.
“We’ve got to shift to a true software engineering mentality to be able to build when we think there’s competitive advantages to be had,” Meyer said. “Folks that understand more of a software engineering mentality, more application development skills on modern platforms, such as cloud and others, are highly in demand.
West Monroe Senior Partner Jordan Sternlieb said upskilling alone isn’t enough to support the tech growth most banks need, and has to be part of a multi-pronged approach to building a strong tech force. Recruiting new talent and partnering with external organizations need to play a role in workforce development.
“I have not seen it done very well, frankly, where banks try to upskill,” Sternlieb said. “Internally, I think there is a lot of value…It can’t be a situation where, within the four walls of the bank alone, through your coaching, you’re going to be able to develop those skills that you need to be successful.”
Sternlieb added that he thinks banks’ technology capabilities have come a long way in the last five years, but that old habits and legacy systems die hard. He said that the top five banks in the country lead the way on innovation, and most other banks are more reactive to development.
West Monroe Partner Joe Davey said as banks do move from decades-old legacy technology to more modern systems, he’s seen some success when companies couple folks who are familiar with the older platforms with new hires who know the updated skills.
“The training and getting your certifications…I think it’s good for banks,” Davey said. “That allows them to continue to meet their employees and give them forward career progression. As technologists, we always need to be refreshing ourselves when we can.”
Some banks, including Truist and Wells Fargo, also take advantage of upskilling done by others in their communities. They partner with external organizations to train folks from outside the finance and tech sectors. Stiegler EdTech, a Charlotte, North Carolina-based organization, teaches people from underserved communities specific technology skills. The company partners with banks and other companies to place all enrollees in technologist jobs upon completion of the program.
Founding Partner and COO Pasha Maher said he’s spoken to banks who use programs like Stiegler EdTech, which usually trains folks from non-finance or -technology backgrounds, as an alternative to recruiting from technology companies.
“Candidly, it’s really expensive to pull that candidate from London, New York, San Francisco,” Maher said. “So this is a really good business opportunity for (banks) to not only make a social impact in the community, but actually hire people at scale in a way that you’re getting a reliable pipeline of qualified, diverse talent that is affordable and effective, which I think every company is looking for, for sure.”
