What employers want: A new skills blueprint
Insights gathered by CFA Institute from financial institutions show that employers today are looking for a workforce that blends rapidly evolving technical expertise with strategic thinking and human skills.
As investment companies seek increased productivity through new technologies like artificial intelligence (AI), new skills requirements are emerging to allow people to use these tools effectively. But traditional finance and analytical skills are as important as they have always been – and increasingly they are needed to apply human judgement to the outputs of automated processes.
According to institutional insights gathered by CFA Institute’s business development team, the investment industry is especially looking for professionals who are:
- AI and coding-literate
- fluent in financial modelling
- geopolitically sophisticated
- sustainability-conscious
- well-versed in emerging asset classes
- proficient in human skills such as leadership.
Coding and AI are top priorities
The technical requirement that employers in finance cite most frequently is for computing and AI-related skills. Coding – and Python in particular – remains an essential ability.
This is because even though AI is increasingly being used for coding, there is still a critical need for people with the knowledge to meet complex and bespoke requirements, as well as to review AI-written code.
Alongside coding, companies are looking for specific skills in AI, data science, and machine learning, in order to instruct and train AI models to work on large datasets, and then to be able to leverage and interpret their outputs.
Human skills are in focus
The continued rise of technical skills in the fields of computing and data has not reduced the demand that employers have for human skills.
A recent post on CFA Institute’s Enterprising Investor blog examined how the emergence of AI in finance has placed greater value on human skills such as critical thinking. In our conversations with industry decision-makers human skills is one of the most frequently mentioned requirements by employers. Essential abilities such as leading teams or presenting to clients and colleagues remain highly sought-after. Employers tell us they are looking for strong communicators and decision-makers.
Excel ability is still in demand
Real-world modelling continues to drive investment decision-making, with employers highlighting the importance of Excel proficiency for data analysis and financial modelling.
While new sectors and business models are emerging all the time within the investment universe, the underlying skills of financial analysis remain essential to analyze them.
Additionally, expertise in traditional tools like Excel allows analysts to interrogate and audit models built by AI and apply sophisticated real-world experience to mitigate the ‘black box’ risks of AI in finance. A report from the CFA Institute Research Foundation has advocated for explainable AI in finance, stressing the importance of human oversight.
It’s a similar story with awareness of geopolitical nuance and an ability to analyze real-world events. Every passing day demonstrates that the world is only becoming more complex, not less – and while AI lowers the traditional barriers to fast analysis of big data, it also highlights the relative scarcity of human judgement.
Interpreting global risks and the dynamics of policy shifts is arguably more critical than ever, especially as the volatility of the business, trade, and regulatory environment increases.
Practicality with depth
In the areas of sustainability and ESG investing, employers are prioritizing practical tools over an academic approach. Today’s investors want to move beyond theory and focus on the tools and methods that will allow them to capture opportunities.
This reflects how an ESG lens on investments is now an operational imperative for many firms, not an optional extra just for those with a particular niche.
In the growing area of alternatives and private markets investing, firms are prioritizing more detailed knowledge as these segments are transformed and made more popular by greater democratization. Employees are expected to have had deep exposure to the essential concepts within asset classes such as private equity and private debt, rather than simply encountering them as a minor element in a broader curriculum.
Learn more about CFA Institute’s Private Market certificates.
Implications for learning
The mix of skills that employers are seeking today has important implications for the design and delivery of learning and training. The priority is on dynamic, modular methods that can accommodate new needs as they emerge, and a portfolio approach to skills development that reflects a more fragmented and varied range of requirements across different roles in the industry.
Traditional training models and methods are being outstripped by the pace of change. In a fast-evolving world, the temptation might be to shorten training commitments, but this risks sacrificing depth of knowledge for speed at a time when the industry needs more sophisticated analytical expertise, not less.
This article is part of our series featuring insights from investment management firms on transforming L&D strategies. Discover how industry leaders are tackling talent development challenges and building capabilities for the future.
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