Financial Services Skills Council LMI Novmeber 2009

Financial Services .

The Sector Skills Council for the Finance industry is Financial Services Skills Council

Contents

1. Introduction to Financial Services 1.1Sector information - a brief introduction to the sector at UK level

The financial services sector employs more than 1.07 million1 people. It is the UK’s most global industry and encompasses a wide range of services and products. The majority of people within the UK use these products and services to manage their own financial situation. For example, if you have a bank or building society account, hold a mortgage, an insurance policy, a pension plan, use a credit card, or have a savings account, then you are interacting with the industry. Financial services also support large businesses and Government to raise money and increase the stability of the UK economy. In short, the financial services industry is about saving, borrowing and investing funds, and managing the transmission of these funds.

In financial services there are employers of varying sizes and who have a number of functions. To help you understand the industry further we suggest you look at the brief description of what makes up financial services:

InsuranceThe insurance market covers a huge variety of risks, from cars and houses to ships, planes and satellites. Those working in the world’s trouble spots need kidnap and ransom cover, oil pipelines need terrorism cover and music promoters insure against the non appearance of the leading act. Insurance is increasingly necessary; events ranging from the school sports day to the Olympic Games could not take place without it. It has a global reach and not only underpins our own individual security, but also enables big business to operate more freely. Events such as floods, theft and fire can affect an individual too, and anyone with something that is of value to them, such as jewellery, a laptop or the general contents of their house may also require insurance.

Individuals may also want to insure their health so that if they become ill, or die, there is a financial safety net for themselves of their family, along with retirement planning for when they will get to an age when they will no longer be working.

BankingBanking is an important sector of UK financial services. Without banks, it would be difficult for individuals and businesses to manage their money, access loans, buy property, exchange currencies and many other activities that we use the banking system for. It is a large sector and is best understood organised when looked at in three core categories: Retail, Corporate and Wholesale banking. Some banks do however operate across all three categories!

Retail bankingThe primary activities of retail banks and building societies are offering access to credit, managing transactions and collecting deposits. These organisations operate on every high street, most have

1 Figures quoted in this document are from the 2007 Annual Business Inquiry (ABI) Employee Analysis and the 2008 Office for National Statistics (ONS) Labour Force Survey (LFS), unless explicitly stated. ABI figures are the primary data sources used to reflect more accurate labour market information at regional level, while the LFS data are used whenever the ABI data are not available. The LFS figures quoted in this document include: ‘Age range of workforce’ and ‘Employed and self employed workers’. Please note due to different sampling methods and the time lag between surveys, the LFS figures may not be consistent with the ABI figures. Therefore, direct comparisons between the two data sources should be avoided.

an online presence and offer telephone banking services too. They offer services and products to the general population to enable people to manage their daily finances, including:

Accounts (e.g., current and saving accounts) Bancassurance (insurance products such Life Cover) Currency exchange Investment products (e.g. Pensions and Independent Savings Accounts) Loans (e.g. mortgages and personal)

There are Area and / or Regional offices support and direct the work of the high street branches. Head office then support the work of the regional offices in addition to managing company wide activities such as accounting functions, risk management, compliance, reporting, legal, IT, HR and training.

Corporate BankingBanks also operate services for business. Businesses sometimes require different types of products and services to those of the general population require. This might relate to how funds are accessed, bespoke banking services arranged to manage their income and expenditure, which could be on a small or large scale and could be in various currencies. Many retail banks will offer business banking services. Corporate banking services can be operated through retail branches, but with staff dedicated to the business banking function.

Wholesale BankingWholesale financial services are distinguished from the retail industry partly by the type of activity and volume of transactions undertaken, but mostly by the nature of the counterparties involved. Wholesale financial services bring together professional counterparties: clients are large companies, banks or governments and service providers include securities and derivatives firms, investment banks and insurers, as well as market infrastructure providers such as exchanges.Whatever career path in banking you choose, you will be in a sector that is forever changing, is innovative and one which, given your skills and dedication, will open up opportunities beyond your initial expectations.

InvestmentsWorking in the investment sector is about managing and growing the wealth of individuals and organisations. Although investment clients may be different - an individual with a small amount of money to invest, a person who has millions of pounds or a company with a large pension fund, the aim is the same, to look after the clients money, and to create more wealth and income. One of the most important aspects of the investment sector is the management of risk and reward. In investments, risk refers to the possibility of the client losing some or all of their money that they have invested, or of their initial investment not growing at all in value. Generally, the products that are higher in risk potentially provide a higher financial gain. Those that are lower in risk tend to have a smaller gain. It is really important that the investment professional working with the client is able to ascertain the client’s attitude to risk. The investment sector is a rapidly evolving industry, constantly looking at the creation of new strategies and products. The products have to provide the financial growth that the client wants; they also sometimes have to fit in with the beliefs and values that the client has too. The range of funds is therefore growing, to include those that are ethical and meet the requirements of people’s religious beliefs. Whatever career path in investments you choose, you will be in a sector that is creative, innovative and entrepreneurial, and one which, given your skills and dedication, will open up opportunities beyond your initial expectations.

Credit Leasing and FinanceCredit, leasing and finance refers to organisations that offer individuals and companies credit to purchase or lease products. The organisations that are involved in credit, leasing and finance include:

banks and building societies (including their subsidiaries) finance arms of large retailers and manufacturers independent firms

The type of finance provided include finance leasing, operating leasing, hire purchase, conditional sale, personal contract purchase plans, personal lease plans, secured and unsecured personal loans, credit cards and store card facilities. Individuals and business need credit, leasing and finance services when they haven’t got the money to buy the products that they need. Businesses may choose to lease products, such as machinery, for a short time instead of purchasing the item. This enables them access to the product in the short term without having to invest in one permanently. There tends to be three types of credit, leasing and finance categories:

Consumer Consumer credit enables individuals to match their income and expenses more closely in order to serve their current needs. People may take out a credit card, a personal loan or a store card.

Motor FinanceFinance and leasing for cars (new and used) and commercial vehicles is a large section of the industry. Many car sales companies offer customers the opportunity to take out a car loan to help pay for their purchase. They also sometimes offer the customer the opportunity to lease the vehicle.

TradeTrade finance provides funding for companies to pay suppliers. Companies may access trade finance services alongside bank overdrafts and loans.  

Whatever career path you choose, you will be in a sector that is forever changing, is innovative and one which, given your skills and dedication, will open up opportunities beyond your initial expectations.

Financial Advice Are you looking for a career where you can support people in understanding and managing their finances? If you are a people person, with excellent people and communication skills, then a career in the Financial Advice sector may be for you. Everybody needs financial advice at some point in their lifetime. It’s not just for those who have a high income or lots of savings; it’s about helping anyone make the most of the money they have. A career in financial advice is about working with people to plan their financial goals, based on their current situation and looking at the best ways they can achieve their financial objectives. It could be about helping someone to choose a mortgage, invest their savings or plan for their retirement.

You can find out more about the career options in financial services on our careers information website, Directions.

2. Financial Services

2.1 A brief description of what the sector covers at England levelFinancial services is a large employer in England, employing approximately 931,600 people. Banking, financial advice, insurance, investment management and credit, leasing and finance feature in order or prevalence of employment in England.

2.2 Information on careers available and new emerging jobs, transferability of skills career paths and opportunities for progression

a) Careers Currently AvailableWithin financial services, there are many careers available across the sector.

In insurance, you will find a team of specialists working together. These teams could include professionals from underwriting, broking, customer services, sales, risk management, compliance, training, actuarial and administrative roles. Each professional supports the other, ensuring that the risk is managed well and that the customers – whether it be an individual, a business, or the government – feel financially secure. It’s not just arranging and negotiating the insurance that is important though. Risk managers help organisations understand and

address all the risk facing their business, including those that can be insured and those that can’t. Loss adjusting and claims management specialists have to manage the situation if the unforeseen event does indeed happen and a loss occurs. They have to use their knowledge and expertise not only to assess the validity of the insurance policy, but also to liaise with a wide range of other people – fire brigade, police, lawyers and doctors to gather evidence and support the customer through the process. Please see the insurance building on the Directions High Street for more information on career options and to view the job profiles.

In investments, there are some roles in investments that involve working with clients, and others behind the scenes.

Those in asset management (sometimes called fund management) and wealth management advise clients about which decisions to make regarding the investment of money, or perhaps making the decision on their behalf.

People in investment analysis conduct research which supports the investment decision of asset managers.

Working in product development, product management involves developing new investment products, managing distribution of within the market place

Relationship management experts developing client interest in the product. Trading professionals are advised by those in asset management and private banking

to execute investment deals that their clients have decided upon. People working in stockbroking generally advise clients on buying and selling stocks

and shares for investment purposes.

Without operations professionals, the trades placed would not be finalised. There is a breadth of opportunities within operations and services including performance measurement, settlements, clearing, investment support, fund administration, pricing and data management, valuations, fund accounting, corporate actions, reporting and reconciliations.

These experts are responsible for Ensuring the buying and selling of shares is smoothly transacted Valuing investment funds and client portfolios, and Safeguarding the assets of clients.

Some roles such as risk management and compliance are also found in other sectors of financial services. It’s important that operations professionals have excellent communications skills, are confident working with others and are accurate in the work that they do. To get an insight into investment operation roles, look at the video on the homepage from the Scottish Investment Operations. As with all financial services organisations, there are a number of professions who may not be financial specialists, but have a vital role in the company. There are opportunities in human resources, training, IT, project management, legal, marketing and administration. All these people contribute towards the work of an investment firm.

In banking, you will find diverse career opportunities across the retail, corporate and wholesale markets. In retail banking and building societies, there are a range of roles which involve working in a high street branch such as customer services, customer advice, financial advice, foreign exchange and branch management. There are roles too in operations and management however which are generally based in regional, area or head offices, such as policy and standards, fraud, e-commerce, business development, settlements and risk management. In corporate banking, many functions operate out of retail branches or from area/regional offices. Roles in corporate advice, relationship management, small business management and corporate management are just some of those available. The career options in wholesale banking are generally grouped under the three sections of Mergers and Acquisitions, Research, Sales and Trading, and Corporate Finance. Most of these tend to be graduate calibre roles, and some include Credit Analysis, Flow and Sales Trading, Proprietary Trading, Structuring, Economic Analysis and Corporate Financing.

Please see the banking building on the Directions High Street for more information on career options and to view the job profiles.

In credit, leasing and finance, there are a variety of the roles include work credit management, debt recovery management, and fraud, billing, insolvency and credit risk. Please see the credit, leasing and finance building on the Directions High Street for more information on career options and to view the job profiles.

In financial advice, you will find people working in organisations of all sizes. Lots of people run their own financial advice business or are employed by firms offering financial advice. Whichever you choose, your work can be based in a central office or can span a large geographical area, sometimes travelling to client’s homes or workplace. You may also work with other financial advice professionals including people who work in customer services and sales who often have the most important first contact with the client, booking appointments and following up enquiries. Those who work in financial or mortgage advice, are in the client facing arena, implementing their communication and negotiation skills, presenting clients with solutions to their financial needs and those in debt management support people in resolving more complex financial problems. Those working in new and existing business administration and paraplanning play an important role in supporting the advice process. Compliance practitioners ensure the statutory regulations are understood by all professionals, are adhered to and processes are in place to ensure that the business remains compliant with regulatory and legal requirements. Experienced financial advice professionals may work in the business development area, generating new clients. Please see the financial advice building on the Directions High Street for more information on career options and to view the job profiles.

b) New and emerging rolesFinancial services is a sector that is undergoing constant change; diversification of services and products in order to offer retail and corporate customers varied and sophisticated financial solutions means that job roles are also undergoing ongoing change. There appears to be a trend in for an increased need for more compliance, risk management and corporate governance professionals. This is in the response to an increased need for a review of regulation policies and practices. There is also an indication that there is going to be increased focus on customer service, both to retail and corporate customers. This may result in a demand for skilled people in the areas of customer services and relationship management. There is also a growth in Islamic banking and finance and this will lead to an increased need of people with knowledge and skills needed to work in this specialized area. Financial crime is also an area where the industry is seeing higher demand placed upon strategies and mechanism to deal sophistically with fraud and as a result there could be a growth in roles in this area. Overall, there seems to be a trend that jobs will increasingly need people with higher level skills; the increase in the use of technology may impact upon those roles which are currently at the lower skill level.

c) Transferability of skills within the sectorEmployers will each have specific skill sets that they will look for from employees, although there tends to be a core set of skills that all employers in the sector look for. This enables transferability of skills within the sector, although do remember that there are some specific roles that require niche skills (please look at the A-Z list of profiles on the Directions website for this information). The core skills that all employers in the sector tend to require from employers include:

customer services numeracy business communication IT written communication product knowledge

industry knowledge

d) Career paths and opportunities for progression As with most career choices, there are a range of progression routes, and this very much varies depending in financial services on the company that you work for. Skills are important when looking to progress; employers will require employees to be able to demonstrate the required skills needed for their next step in their career. Progression opportunities within financial services are available; if an employee demonstrates enthusiasm, commitment and competence, progression is quite often possible. For many financial services roles, professional qualifications are important. These are gained whilst in a role and provide the technical knowledge required to undertake the tasks of a job. Sometimes it is necessary to have a specific qualification before progression is possible. The opportunities available to an individual once in the sector are limited only by their personal choice. You can find out more about progression routes for each profession by looking on the individual job profiles. You can find an A-Z list of profiles on the Directions website.

2.3 Information on pay scales in the sectorIn England, the average pay scale for financial services employees is estimated at £53,0002 per annum. This figure is biased however by the London job market, which has a higher salary level. The sector does not operate sector wide salary scales. Employers often pay a ‘basic’ salary and will then quite often offer a ‘package’ which may include an annual performance related bonus, pension, and private health care insurance. Please look on the individual job profiles for indication of salaries for each profession. It would also be useful to look at the salary surveys that recruitment agencies specialising in financial services compile on a yearly basis. Please visit the salary page on the Directions website to get an overview of salaries in financial services.

2.4 Information on entry requirements, application processes (e.g. Apprenticeships)There is a wide range of career opportunities within financial services, and therefore the entry requirements and application procedures for each of the options differ. We would recommend that you look on the Directions website at each job profile to look at the qualification requirements for each career option. There tends to be three types of entry to careers in financial services:

1) Entry with GCSEs, NVQ 2, Higher BAF Diploma or equivalent Entry with these qualifications would tend to lead into junior roles in accounting, book-keeping, payroll, credit control and credit management. These roles tend to require GCSEs, Standard Grades or equivalent in English and Maths as well as some good IT skills.

2) Entry with A levels, NVQ3, Advanced BAF Diploma or equivalent Entry with these qualifications would enable entry to a career in administrative, sales, and customer services roles. It is likely that these roles will have integral training and an opportunity to then take professional qualifications. These roles could be within any of the financial services subsectors, but most likely to be found in retail banks or building societies, retail insurance, financial advice or credit leasing and finance. There are however some opportunities to enter formal training schemes with some companies for people with level three qualifications. These companies tend to be banks, building societies and financial advice firms. There may also be some formal schemes available in wholesale and investment banks and investment firms; however these firms will tend to require very good grades and can be competitive.

3) Entry with foundation degree, degree or equivalentEntry with these qualifications would lead to professional and technical roles. It is highly likely that these roles will have formal training that will lead to professional qualifications. The employer will often require that the professional qualifications are gained within a certain timeframe. The companies that offer these schemes tend to be banks, investment firms, insurance companies and financial advice firms. Some of the schemes can be very competitive and often require good grades.

The application process for careers in the sector varies, but many will require a direct application to the employer or via a recruitment agency. More information on job hunting and using recruitment agencies can be found on the Directions website.

ApprenticeshipsApprenticeships and Advanced Apprenticeships are available for Providing Financial Services and Advising on Financial Products. More information on the content and entry requirements to Apprenticeships is available on the FSSC website. Apprenticeships are available for people already in employment although some companies may also advertise for an ‘apprentice’. These are advertised on the National Apprenticeship Service website.

A Level or Equivalent Leaver Training SchemeSome companies offer formal training schemes for people who have good A Level grades or equivalent qualifications. These schemes often last two years and the candidate will experience a number of different departments within the company and will undertake professional qualifications as part of their training. The application procedures for these are through direct application to the company. More information on job hunting can be found on the Directions website.

Graduate Training Schemes Some companies offer formal training schemes for people who have achieved a degree with a good classification – most employers will requires a 2.1, although some employers will accept a 2.2. These schemes often last two years and the candidate will experience a number of different departments within the company and will undertake professional qualifications as part of their training. The application procedures for these are through direct application to the company. More information on job hunting can be found on the Directions website.

2.5 QualificationsFinancial services employers place value on professional qualifications and look for employees that are committed to achieving relevant exams.  For some roles, employers will look for potential employees to have relevant qualifications.  Most employers would not expect new entrants to be in possession of relevant professional qualifications but would require them to have good maths and English skills, alongside the minimum academic qualification required for the role (for example being an actuary in an insurance firm would require a degree for entry; working in customer services in a bank may require GCSEs or equivalent).  The employer would, however, expect new entrants to be committed to achieving relevant professional qualifications once they are in post.  This demonstrates dedication to the job and a keenness to progress.  Professional qualifications are job specific.  They build on top of general and academic qualifications (such as A Levels, degrees, GCSEs, 14-19 Diplomas etc) and give the learner the exact technical knowledge required to undertake the tasks of a role. Professional qualifications fall into three categories:

Appropriate ExamsFor some roles, specific qualifications are needed in order to undertake the activities of the job unsupervised.  For example, to provide mortgage advice, the adviser must have an Appropriate Exam.   The FSA decides which job activities are regulated and therefore which ones must have an Appropriate Exam attached to them. It is generally jobs that involve advising the general population on financial matters that are regulated.  It's important to remember that the employer will not necessarily expect you to have this qualification if you are a new entrant but they will expect that you successfully obtain it whilst in post.

The FSA has proposed to raise the current qualification requirement for certain regulated advice roles from level 3 to 4. Individuals who are currently studying for a level 4 qualification are advised to continue studying and can fill any gaps from the new appropriate exam standards by continuing professional development (CPD). New qualifications will be

available that meet the new FSA standards by August 2010. The expectation candidates must have achieved a qualification which meets the RDR standard by the end of 2012 in order to operate within an RDR-affected role. For more information please see RDR Exams Standard Project section of the FSSC website.

Recommended ExamsThere are certain job activities that do not require the person to have a specific qualification, but the FSA recommends that the employee considers working towards a professional qualification. These activities are generally those that involve advising other businesses on financial matters. Again, the employer will not necessarily expect you to have this qualification if you are a new entrant but they may expect that you successfully obtain it whilst in post.

Other professional qualificationsAside from Appropriate and recommended exams, there are many other qualifications that are offered by professional bodies that employers would deem useful for the employee to achieve whilst they are in work.  Please see the list of qualifications section of the FSSC website to view the range of qualifications on offer.

2.6 Data on employment and labour market trends and forecastsIn England, there are 931,600 people employed in financial services labour market. This is not evenly spread across England however and we would recommend you view the breakdown across the regions. England, owing to the influence of a number of financial services clusters, has slightly more managers, professionals and technical staff in relative terms, as well as slightly fewer secretarial and administrative, or sales and customer service, staff. All types of people work in the sector and this can be broken down as below:

Gender breakdownOn first inspection, the industry appears quite hospitable to women; 53 per cent of the financial services workforce are women, a ratio significantly larger than that across all industries. Almost three quarters of all women in the industry are in administrative, sales or customer service roles. By contrast, less that a third of all managers and proprietors, and barely one in every eight professionals and technical staff, are women. The pattern appears to be that women tend to take support roles in the industry, while men dominate those positions with a more technical content. There are more women than men that work in financial services in England.

Male FemaleEngland 450,467 481,104

Age range of workforceThe industry has a reputation for being dominated by older people. Sales and customer service staff are typically younger, as are employees in elementary roles, and administrative staff are, on average, marginally younger than the rest of the workforce. Managers and senior managers are the oldest segment of the workforce. Age, to some extent, is only an implication of the requirements for such roles: the extensive experience, range of relationships and holistic view of the industry required of managers and executives usually take a great deal of time to develop. There are more employees in the age range of 25 years to 44 years in England. The bracket for this age group is wider than the others and this does explain the increased number of employees. Another factor that contributes to this however is that large number of the financial services workforce have a qualification that is at level three (NVQ 3, A Levels, BTEC National Diploma) and a significant number have a level 4 qualification and above (NVQ 4, Foundation Degree, Degree etc). This therefore means that people are in education for longer and enter the labour market at an older age.

Age (yrs) Number of employees16 – 24 138,40025 – 44 669,90045 – 54 207,00054+ 84,300

Please note that the figures in the table above are not consistent with the 931,600 stated in the introductory paragraph as the source is from the LFS and not ABI.

Full time and part time employeesFull-time employment is the norm in financial services, more so than in other industries. Overall, the industry makes less extensive use of part-time roles, than other parts of the economy. There are significantly more full time than part time employees in financial services in England.

Full time employees Part time employees789,330 142,239

Employed and self employed workersSelf-employment is not only a sound entrepreneurial decision for many specialists in the industry, but is also very often prompted by restructuring and redundancies among major employers. Still, the level of self-employment in financial services is nowhere near that for the wider economy. There are significantly more employed than self employed workers in financial services in England.

Number of employed workforce Number of self employed workforce1048,000 49,132

Please note that the figures in the table above are not consistent with the 931,600 stated in the introductory paragraph as the source is from the LFS and not ABI.

ForecastingIt is not currently possible to provide accurate information regarding the forecasting of the changes that will occur in the financial services labour market due to the current economic conditions.

2.7 Skill shortagesThere have some broad areas for improvement in skills highlighted by industry. These are shown in the table below by level of occupation.

Top 3 Areas for Skill ImprovementsOccupation Areas

Customer services staff

Doing more than expectedProduct knowledgeIndustry knowledge

Managers & senior managers

Positive management of staff relationshipsIT systemsCoping with stress or pressure

Professional & technical staff

Understanding client needsWorking effectively with others in a teamAbility to communicate clearly at all levels

Sales staffProduct knowledgeIndustry knowledgeBusiness language - Written communication and literacy

School leavers & graduates

Industry knowledgeProduct knowledgeBusiness language - Written communication and literacy

Secretarial & administrative staff

Industry knowledgeProduct knowledgeDoing more than expected

FSSC Employer Surveyhttp://www.fssc.org.uk/the_skills_bill___analysis_of_skills_needs_in_uk_financial_services__for_web_.pdf

In terms of hard to fill vacancies in England, employers noted that there is a lack of qualified managers and senior managers, although the current economic climate means that there are substantial changes in the availability of skills within the labour market, which has an impact upon employers ability to recruit to certain posts.

2.8 Information on opportunities for adults changing career directionThere are many opportunities for adults who are hoping to change career direction. Skills are very important within the industry and employers will require individuals to demonstrate that their skills profile matches that of the specific job to which they are applying. Financial services professionals exist in other sectors too – financial services is a sector that cuts across many others and therefore the skills and experiences that people bring into the industry from a wide range of backgrounds can be very useful. The core skills that the majority of financial services employers look for in an individual include

customer services numeracy business communication IT written communication.

These skills can be gained from job roles in the majority of other sectors. Financial services employers would also be looking for people who have some awareness of the sector and of the products that are dealt with in the sector. This knowledge could be gained from studying introductory units to give some background information on the industry and products. Please see the education and training section of Directions to look at the study options.

2.9 Information on points of entry or transfer into a sector from another area sectorAs with most career choices, there are a range of entry routes for people with different levels of qualifications and experience. Opportunities and salary will vary across the UK too and it is important to remember this when planning your career move. In England, apprenticeships are available for adults in both Providing Financial Services and Advising on Financial Products. Please see the apprenticeship section on the FSSC website for more information. Look at the individual job profiles on the Directions website for more information on the skills profile required for each job, along with the type of experience that may be useful. The job hunting section on the Directions website, gives more information on how to find a job in financial services, along with links through to specific companies and organisations.

2.10 Job profilesJob profiles for careers in financial services can be found on the Directions website. These job profiles cover careers within investments, banking, insurance, financial advice and credit, leasing and finance. These can be accessed through the Directions High Street or through the A-Z List. Alternatively click on the job below to access the PDF profile.

Actuarial (pdf)Area Management Asset Management (pdf)BillingBranch ManagementBranch OperationsBusiness Development (pdf)CashierClaims Management (pdf)   Clearing (pdf)Client Relationship Management (pdf) Compliance (pdf) Complaint Handling StrategyCorporate Actions (pdf)Corporate Business to Business Banking Corporate Finance Origination (pdf)Corporate Financing (pdf)

Corporate Recovery (pdf)Corporate Responsibility (pdf)Corporate Treasury (pdf)Credit Management (pdf)Credit RiskCredit Risk Analysis (pdf)Customer Services (pdf)Debt ManagementDebt Recovery (pdf)E-CommerceEconomic Analysis (pdf)Financial AdviceFinancial Planning High NetFixed Income Analysis (pdf)Flow and Sales Trading (pdf)Foreign Exchange CashierForeign Exchange Research (pdf)Foreign Exchange Sales (pdf)Foreign Exchange Trading (pdf)Fraud (pdf)Fund Accounting (pdf)Fund Administration (pdf)Fund Reporting (pdf)Fund Support (pdf)   Global Custody (pdf)Human Resource Management (pdf)Information Technology (pdf)Institutional Sales (pdf)Insurance Broking Retail (pdf)Insurance Broking Wholesale (pdf)Investment Analysis (pdf)Investment Reconciliations (pdf)Legal (pdf)Loss Adjusting (pdf)Management Information (pdf)Market Research (pdf)Market Strategy (pdf)Marketing and Communications (pdf)Mergers and Acquisitions Analysis (pdf)Mergers and Acquisitions Senior Banker (pdf)Mortgage Advice New and Existing Business AdministrationParaplanningPensions AdvicePerformance Measurement (pdf)Pricing (pdf)Product Management (pdf)Project Management (pdf)Proprietary Trading (pdf)Risk Management (pdf)Risk Analysis (pdf)Sales (pdf)Settlements (pdf)Stockbroking (pdf)Structuring (pdf)Trading (pdf)Training (pdf)

Underwriting (pdf)   Valuations (pdf)Wealth Management (pdf)

2.11 Case studiesCase studies for careers in financial services can be found on the Directions website. These job case studies cover careers across financial services.

Account Controller Actuarial Consultant Aerospace Claims Handler Banking Advisor Branch Manager Business Manager Customer Services Officer Financial Analyst, Divisional Director Fund Administration Help Desk Coordinator   Investment Administration Pension Fund Accounting Manager Section Manager Asset Management and Securities Servicing Senior Mortgage Adviser Settlements Assistant Team Leader

2.12 FAQsHow important are qualifications and training to the financial services industry?Employers in the sector value qualifications.  Qualifications can help you get entry to a career and get on in your career.  There are a range of courses that are relevant to the industry and these can be viewed here.  Financial services is a regulated industry and therefore it is often necessary to hold an 'appropriate examination' before being allowed to do a job unsupervised. Please see the section on Professional Qualifications for more information.  Many employers in the industry will support you in gaining these qualifications. Where can I find out about courses in financial services?We would recommend you visit the National Skills Academy for Financial Services website and also look at the Qualifications page on the Directions website, which will signpost you to relevant sources of information on courses.

Are there apprenticeships in financial services?Yes.  Apprenticeships are available throughout the UK, but there are slight differences across the nations. Generally, there are two frameworks available - Advising on Financial Products and Providing Financial Services. Please see the Apprenticeship section of the Directions website for more information.

Where can I find out more about the Diploma in Business, Administration and Finance?Please visit the Diploma website for more information - www.baf-diploma.org.uk.

What skills are financial services employers looking for?There are skills that all employers require, such as good communication, team work and IT skills.   There are also personal qualities that employers look for such as good timekeeping, demonstrating an awareness of the sector and drive and resilience.  There are skills however that employers in financial services specifically are looking for from their workforce. These include business communication skills, financial literacy, numeracy, relationship management and good customer service.  See the Finding a Job in Financial Services for more information on skills.

Are there opportunities for adults to enter the sector?

Yes.  The majority of the career options in financial services require people to have good communication skills, be good at customer service and have a good understanding of numeracy.  These are all skills that can be gained from a range of other work environments and from other experiences in life. Employer’s value experience and this doesn't always have to be from within the financial services industry.

Where can I find out about vacancies in financial services?We would recommend that you look at the section on Finding a Job in Financial Services page on the Directions website to get tips on CVs, interviews and look at the range of employers and agencies that are featured.  We would also recommend that you visit Jobcentre Plus to find out about vacancies in your area.  You could also use recruitment agencies in your local area.

2.13 Sources of additional information, web-links etcThere are a number of trade associations and professional bodies which can provide further information on careers, education and training in financial services.

Careers information, advice and guidance Connexions www.connexions-direct.comCareers Advice Service careersadvice.direct.gov.ukUnionlearn www.unionlearn.org.ukProspects www.prospects.ac.ukE-Financial Careers www.efinancialcareers.co.uk

Course search informationUndergraduate courses www.ucas.comPostgraduate coursers www.hotcourses.comDiploma in Business, Administration and Finance www.baf-diploma.org.ukNational Skills Academy for Financial Services www.nsafs.co.uk

Trade associationsACI UK www.aci-uk.comAssociation for Payment Clearing Services (UK) www.apacs.org.ukAssociation of British Insurers www.abi.org.ukAssociation of Independent Financial Advisers www.aifa.netAssociation of Private Client Investment Managers and Stockbrokers www.apcims.co.ukBritish Bankers' Association www.bba.org.ukBritish Insurance Brokers Association www.biba.org.ukBuilding Societies Association www.bsa.org.ukCouncil of Mortgage Lenders www.cml.org.ukFinance & Leasing Association www.fla.org.uk    Futures & Options Association (UK)    www.foa.co.ukInternational Underwriting Association (UK) www.iua.co.ukLondon Investment Banking Association www.liba.org.ukNational Association of Pension Funds www.napf.co.uk World Savings Banks Institute (UK) www.savings-banks.comAssociation of Investment Trust Companies www.aitc.co.uk    Confederation of British Industry www.cbi.org.ukInvestment Management Association www.investmentuk.org    Lloyd’s Market Association www.lmalloyds.com The Institute of Risk Management www.theirm.org.ukChartered Institute of Loss Adjusters www.cila.co.uk   Scottish Investment Operations www.sio.org.uk

ApprenticeshipsNational Skills Academy for Financial Services www.nsafs.org.ukApprenticeships Online www.apprenticeshipsonline.org

Awarding OrganisationsABC Awards www.abcawards.co.ukAssociation of Accounting Technicians www.aat.org.uk The Association of Business Executives www.abeuk.comAssociation of Chartered Certified Accountants www.uk.accaglobal.comThe Chartered Institute of Bankers in Scotland www.ciobs.org.ukChartered Institute of Management Accountants www.cimaglobal.comChartered Institute of Public Finance and Accountancy www.cityandguilds.comThe CFA Society of UK www.cfa.uk.comThe CFA UK www.uksip.orgThe Chartered Insurance Institute www.cii.co.ukEdexcel Limited www.edexcel.org.ukEducation Development International plc www.ediplc.comThe IFS School of Finance www.ifslearning.ac.ukThe Institute of Certified Book-Keepers www.book-keepers.orgThe Institute of Chartered Accountants in England & Wales www.icaew.co.ukInstitute of Chartered Accountants in Ireland www.icai.ieThe Institute of Chartered Accountants in Scotland www.icas.org.uk The Institute of Credit Management www.icm.org.ukThe Institute of Financial Planning www.financialplanning.org.ukThe Institute of Revenues Rating and Valuation www.irrv.netThe International Association of Book-Keepers www.iab.org.ukThe National Open College Network www.nocn.org.ukNCFE www.ncfe.org.ukOxford, Cambridge & RSA Exams www.ocr.org.ukThe Pensions Management Institute www.pensions-pmi.org.ukThe Scottish Qualifications Authority www.sqa.org.ukThe Securities & Investment Institute www.sii.org.uk

2.14 Regional InformationFinancial services employment and activity are unevenly distributed across the UK. London dominates UK financial services, but a great deal of activity takes place in other English regions, such as the South East and the North West. Financial services clusters, such as Leeds, Manchester, and, of course, the City of London, are the hubs that drive growth and innovation in the industry by nurturing a specialist workforce and shared business infrastructure. Different activities are carried out in different geographical areas, taking advantage of the specific skills of the local workforce, of cost advantages, of business and political infrastructure.

2.14.1 Financial Services in the East MidlandsRetail banking dominates financial services employment in the East Midlands. There are 43,777 people employed in financial services in the East Midlands. The average earnings are £30,050 per annum.

Gender breakdownThere are more females in the East Midlands financial services labour market than male.

Male FemaleEast Midlands 16,959 26,818

Age range of workforceThere are more financial services employees in the 25 - 44 years age bracket in the East Midlands. The bracket for this age group is wider than the others and this does explain the increased number of employees.

Age (yrs) Number of employees16 – 24 8,700

25 – 44 25,80045 – 54 14,20054+ 5,800

Please note that the figures in the table above are not consistent with the 43,777 stated in the introductory paragraph as the source is from the LFS and not ABI.

Full time and part time employeesThere are significantly more full time workers in the East Midlands than part time.

Full time employees Part time employees35,100 8,677

Employed and self employed workersThere are significantly more employed people in financial services in the East Midlands than self employed. This is representative of the entire financial services workforce UK wide however.

Number of employed workforce Number of self employed workforce53,700 800

Please note that the figures in the table above are not consistent with the 43,777 stated in the introductory paragraph as the source is from the LFS and not ABI.

ForecastingIt is not currently possible to provide accurate information regarding the forecasting of the changes that will occur in the financial services labour market due to the current economic conditions.

Skill shortagesSkill shortages in the East Midlands mirror those of the wider UK. These are shown in the table below by level of occupation.

Top 3 areas for skill improvementOccupation Areas

Customer services staffDoing more than expectedWorking effectively with others in a teamBusiness language - Written communication and literacy

Managers & senior managers

Working effectively with others in a teamIT systemsDoing more than expected

Professional & technical staff

Working effectively with others in a teamSelf-motivation and directionCoping with stress or pressure

Sales staffSelf-motivation and directionMoving on from criticism or setbacksBusiness language - Written communication and literacy

School leavers &graduates

Self-motivation and directionWorking effectively with others in a teamProduct knowledge

Secretarial & administrative

Self-motivation and directionDoing more than expectedBusiness language - Written communication and literacy

FSSC Employer Surveyhttp://www.fssc.org.uk/the_skills_bill___analysis_of_skills_needs_in_uk_financial_services__for_web_.pdf

2.15.2 Financial Service in the East of England

The in East of England, banks and building societies are not as central to employment in the region as they are elsewhere, with only one-third of the total financial services workforce working in the sector. Instead, general insurance and insurance broking are more important to employment in this region than to any other. This is partly because the East of England is home to the insurance hub of Norwich (and, to a lesser extent, Peterborough), which is the single busiest insurance centre outside London. This activity is complemented by a strong insurance broking sector in Norwich and Ipswich, and smaller concentrations in Brentwood and Southend-on-Sea. Major employers in these areas include Barclays Personal Insurance, First Direct, HSBC, Lloyds TSB, Marsh, Norwich & Peterborough Building Society, Norwich Union and RBS. There are 72,006 people employed in financial services in the East of England. The average earnings are £32,202 per annum.

Gender breakdownThere are more females in the East of England financial services labour market than male.

Male FemaleEast of England 31,805 40,200

Age range of workforceThere are more financial services employees in the 25 - 44 years age bracket in the East of England. The bracket for this age group is wider than the others and this does explain the increased number of employees.

Age (yrs) Number of employees16 – 24 15,00025 – 44 94,80045 – 54 35,60054+ 13,700

Please note that the figures in the table above are not consistent with the 72,006 stated in the introductory paragraph as the source is from the LFS and not ABI.

Full time and part time employeesThere are significantly more full time workers in the East of England than part time.

Full time employees Part time employees59,197 12,819

Employed and self employed workersThere are significantly more employed people in financial services in the East of England than self employed. This is representative of the entire financial services workforce UK wide however.

Number of employed workforce Number of self employed workforce153,700 5,500

Please note that the figures in the table above are not consistent with the 72,006 stated in the introductory paragraph as the source is from the LFS and not ABI.

ForecastingIt is not currently possible to provide accurate information regarding the forecasting of the changes that will occur in the financial services labour market due to the current economic conditions.

Skill shortagesThe East of England benefits from the abilities of a highly skilled workforce, but is one which cannot be replenished or expanded easily due to skills shortages. Skill shortages in the East of England mirror those of the wider UK. These are shown in the table below by level of occupation.

Top 3 areas for skill improvementsOccupation Areas

Customer services staff

Product knowledgeIndustry knowledge

Self-motivation and direction

Managers & senior managers

Project and people organisationFinding and communicating alternative solutionsIT systems

Professional & technical staff

Understanding client needsAbility to communicate clearly at all levelsFinding and communicating alternative solutions

Sales staffIndustry knowledgeCoping with stress or pressureIT systems

School leavers & graduates

Product knowledgeBusiness language - Written communication and literacyIndustry knowledge

Secretarial & administrative staff

Industry knowledgeSelf-motivation and directionNumeracy

FSSC Employer Surveywww.fssc.org.uk/the_skills_bill___analysis_of_skills_needs_in_uk_financial_services__for_web_.pdf

2.15.3 Financial Services in LondonLondon dominates the financial services industry. Wholesale banking, investment management and wholesale insurance are key activities in London and are centered on the City and Canary Wharf, accounting London is the undisputed focal point for investment and fund management and security broking and is home to all the UK’s major exchanges and financial markets. Wholesale financial services are not the only type of activity concentrated in London. The City is a focus for all financial services sectors, as is Canary Wharf. Extensions to the City, specialising in auxiliary services and financial advice, include Southwark and Islington and a great deal of employment in non-life insurance is concentrated around Croydon. Financial services in the Greater London region are far more clustered than in the rest of the UK. There are 325, 813 people employed in financial services in London. The average earnings are £96, 909 per annum, although this is due to the number of high earning posts in the City. This is not representative of the majority of the London workforce in financial services, however earning are still considerably higher in London than in the other English regions.

Gender breakdownThere are more males in the London financial services labour market than female.

Male FemaleLondon 192,575 133,238

Age range of workforceThere are more financial services employees in the 25 - 44 years age bracket in London. The bracket for this age group is wider than the others and this does explain the increased number of employees. Another factor that contributes to this however is that a large number of the financial services workforce in London are qualified at level 4 and above (NVQ 4, Foundation Degree, Degree, Masters etc). This therefore means that people are in education for longer and enter the labour market at an older age.

Age (yrs) Number of employees16 – 24 22,900

25 – 44 220,60045 – 54 28,10054+ 13,200

Please note that the figures in the table above are not consistent with the 325,813 stated in the introductory paragraph as the source is from the LFS and not ABI.

Full time and part time employeesThere are significantly more full time workers in London than part time.

Full time employees Part time employees300,768 25,046

Employed and self employed workersThere are significantly more employed people in financial services in London than self employed. This is representative of the entire financial services workforce UK wide however.

Number of employed workforce Number of self employed workforce271,400 12,600

Please note that the figures in the table above are not consistent with the 325,813 stated in the introductory paragraph as the source is from the LFS and not ABI.

ForecastingIt is not currently possible to provide accurate information regarding the forecasting of the changes that will occur in the financial services labour market due to the current economic conditions.

Skill shortagesLondon is reported to have the smallest percentage of skills-challenged employers. There is competition in London for school leavers and graduates as employers graduate schemes aggressively target the graduate market, competing for fresh talent. Skill shortages in London mirror those of the wider UK. These are shown in the table below by level of occupation.

Top 3 areas for skill improvementsOccupation Areas

Customer services staffProduct knowledgeIndustry knowledgeSelf-motivation and direction

Managers & senior managers

Project and people organisationFinding and communicating alternative solutionsIT systems

Professional & technical staff

Understanding client needsAbility to communicate clearly at all levelsFinding and communicating alternative solutions

Sales staffIndustry knowledgeCoping with stress or pressureIT systems

School leavers & graduates

Product knowledgeBusiness language - Written communication and literacyIndustry knowledge

Secretarial & administrative staff

Industry knowledgeSelf-motivation and directionNumeracy

FSSC Employer Surveywww.fssc.org.uk/the_skills_bill___analysis_of_skills_needs_in_uk_financial_services__for_web_.pdf

2.15.4 Financial Services in the North EastThe North East is another region where financial services are heavily geared towards banking and insurance broking. The region is led by the financial services cluster in Newcastle upon- Tyne. The Newcastle and Universal building societies, which have now merged into Newcastle Building Society is a major employer. There are 28,387 people employed in financial services in the North East. The average earnings are £26,538 per annum.

Gender breakdownThere are more females in the North East financial services labour market than male.

Male FemaleNorth East 10,678 17,700

Age range of workforceThere are more financial services employees in the 25 - 44 years age bracket in the North East. The bracket for this age group is wider than the others and this does explain the increased number of employees.

Age (yrs) Number of employees16 – 24 8,60025 – 44 16,00045 – 54 6,30054+ 900

Please note that the figures in the table above are not consistent with the 28,387 stated in the introductory paragraph as the source is from the LFS and not ABI.

Full time and part time employeesThere are significantly more full time workers in the North East than part time.

Full time employees Part time employees20,300 7,100

Employed and self employed workersThere are significantly more employed people in financial services in the North East than self employed. This is representative of the entire financial services workforce UK wide however.

Number of employed workforce Number of self employed workforce30,700 1,000

Please note that the figures in the table above are not consistent with the 28,387 stated in the introductory paragraph as the source is from the LFS and not ABI.

ForecastingIt is not currently possible to provide accurate information regarding the forecasting of the changes that will occur in the financial services labour market due to the current economic conditions.

Skill shortagesSkill shortages in North East mirror those of the wider UK. These are shown in the table below by level of occupation.

Top 3 areas for skill improvementsOccupation Areas

Customer services staff

Industry knowledgeTechnical and practical knowledgeMoving on from criticism or setbacks

Managers & senior IT systems

managersPositive management of staff relationshipsMoving on from criticism or setbacks

Professional & technical staff

Moving on from criticism or setbacksUnderstanding client needsWorking effectively with others in a team

Sales staffIT systemsIndustry knowledgeCoping with stress or pressure

School leavers & graduates

Industry knowledgeProduct knowledgeBusiness language - Written communication and literacy

Secretarial & administrative staff

Industry knowledgeDoing more than expectedProject and people organisation

FSSC Employer Survey www.fssc.org.uk/the_skills_bill___analysis_of_skills_needs_in_uk_financial_services__for_web_.pdf

2.15.5 Financial Services in the North WestThe industry in the North West is on a par with that of Scotland as a contributor to employment. Although Manchester forms an obvious focal point for all financial services sectors in the region, Chester, Macclesfield and Stockport are also important industry clusters. Banking and general insurance, mostly centered on Manchester and Chester, account for most of the financial services employment in the North West. Manchester is a diverse financial services centre, with dense employment across all sectors, while Chester focuses on banking and auxiliary services. Among the smaller centres, Macclesfield focuses on credit granting and insurance broking, and Stockport is strongest in financial leasing. Major employers include Barclays, the Cheshire Building Society, Cooperative Financial Services and Insurance Society, London Scottish Bank, MBNA, M&S Money and Royal Bank of Scotland. Since 2004, the region has also attracted investment from the Bank of New York, Bank of America and the State Bank of India.

There are 103,648 people employed in financial services in the North West. The average earnings are £29,865 per annum.

Gender breakdownThere are more females in the North West financial services labour market than male.

Male FemaleNorth West 44,822 58,827

Age range of workforceThere are more financial services employees in the 25 - 44 years age bracket in the North West. The bracket for this age group is wider than the others and this does explain the increased number of employees.

Age (yrs) Number of employees16 – 24 15,50025 – 44 69,90045 – 54 22,10054+ 8,200

Please note that the figures in the table above are not consistent with the 103,648 stated in the introductory paragraph as the source is from the LFS and not ABI.

Full time and part time employeesThere are significantly more full time workers in the North West than part time.

Full time employees Part time employees84,465 19,183

Employed and self employed workersThere are significantly more employed people in financial services in the North West than self employed. This is representative of the entire financial services workforce UK wide however.

Number of employed workforce Number of self employed workforce110,500 4,800

Please note that the figures in the table above are not consistent with the 103,648 stated in the introductory paragraph as the source is from the LFS and not ABI.

ForecastingIt is not currently possible to provide accurate information regarding the forecasting of the changes that will occur in the financial services labour market due to the current economic conditions.

Skill shortagesThe supply of skills in the labour market in the North West is at relatively high levels but employers are reporting extensive skill gaps among their employees. Employers in the North West were concerned about lack of applicants to sales and customer services roles. Skill shortages in North West mirror those of the wider UK. These are shown in the table below by level of occupation.

Top 3 areas for skill improvementsOccupation Areas

Customer services staff

Industry knowledgeProduct knowledgeIT systems

Managers & senior managers

Industry knowledgePositive management of staff relationshipsProject and people organisation

Professional & technical staff

Working effectively with others in a teamManagement of customer or b2b relationshipsUnderstanding client needs

Sales staffTechnical and practical knowledgeIT systemsIndustry knowledge

School leavers & graduates

Industry knowledgeSelf-motivation and directionUnderstanding client needs

Secretarial & administrative staff

Flexibility and co-operationBusiness language - Written communication and literacyIT systems

FSSC Employer Surveywww.fssc.org.uk/the_skills_bill___analysis_of_skills_needs_in_uk_financial_services__for_web_.pdf

2.15.6 Financial Services in the South EastThe South East is the most important contributor to financial services employment and output outside London. Currently, the region holds the UK’s greatest share of employment in leasing and

credit granting, most notably in Brighton and Hove, Reading, Reigate and Banstead, as well as life insurance and pension funding, centered on Reading and Reigate and Banstead. These two areas additionally attract much of the employment in auxiliary services, including financial advice. Major employers in these areas of concentration include American Express, GMAC, HSBC, Legal & General, Lloyds TSB, Prudential and Skandia.

There are 124,425 people employed in financial services in the South East. The average earnings are £36,732 per annum.

Gender breakdownThere are more females in the South East financial services labour market than male.

Male FemaleSouth East 56,224 68,202

Age range of workforceThere are more financial services employees in the 25 - 44 years age bracket in the South East. The bracket for this age group is wider than the others and this does explain the increased number of employees.

Age (yrs) Number of employees16 – 24 21,00025 – 44 100,40045 – 54 41,20054+ 20,900

Please note that the figures in the table above are not consistent with the 124,425 stated in the introductory paragraph as the source is from the LFS and not ABI.

Full time and part time employeesThere are significantly more full time workers in the South East than part time.

Full time employees Part time employees102,179 22,246

Employed and self employed workersThere are significantly more employed people in financial services in the South East than self employed. This is representative of the entire financial services workforce UK wide however.

Number of employed workforce Number of self employed workforce173,400 9500

Please note that the figures in the table above are not consistent with the 124,425 stated in the introductory paragraph as the source is from the LFS and not ABI.

ForecastingIt is not currently possible to provide accurate information regarding the forecasting of the changes that will occur in the financial services labour market due to the current economic conditions.

Skill shortagesThe South East is threatened by a combination of significant skills gaps and an insufficient supply of skills through the labour market. One of the reasons for this is that London is very close and is a drain on talent. Skill shortages in the South East mirror those of the wider UK. These are shown in the table below by level of occupation.

Top 3 areas of skill improvementsOccupation Areas

Customer services Business language - Written communication and literacy

staffProduct knowledgeDoing more than expected

Managers & senior managers

Positive management of staff relationshipsIT systemsCoping with stress or pressure

Professional & technical staff

Product knowledgeIndustry knowledgeAbility to communicate clearly at all levels

Sales staff Product knowledgeBusiness language - Written communication and literacyIndustry knowledge

School leavers & graduates

Business language - Written communication and literacyDoing more than expectedIndustry knowledge

Secretarial & administrative staff

Product knowledgeIndustry knowledgeDoing more than expected

FSSC Employer Surveywww.fssc.org.uk/the_skills_bill___analysis_of_skills_needs_in_uk_financial_services__for_web_.pdf

2.15.7 Financial Services in the South WestMany of the roles in the financial services industry in the South West are clustered in Bristol, Bournemouth, Gloucester and Swindon. . Employment in life insurance and pension funding are mainly concentrated in Bournemouth and Swindon. Despite this emphasis on insurance, almost half the region’s employees work in banks and building societies. Major employers include AXA, Cheltenham & Gloucester, JPMorgan Chase, Lincoln Financial Group, Lloyds TSB, Nationwide and Zurich.

There are 78,357 people employed in financial services in the South West. The average earnings are £36,343 per annum.

Gender breakdownThere are more females in the South West financial services labour market than male.

Male FemaleSouth West 33,000 45,309

Age range of workforceThere are more financial services employees in the 25 - 44 years age bracket in the South West. The bracket for this age group is wider than the others and this does explain the increased number of employees. Age (yrs) Number of employees16 – 24 17,30025 – 44 49,20045 – 54 23,10054+ 8,300

Please note that the figures in the table above are not consistent with the 78,357 stated in the introductory paragraph as the source is from the LFS and not ABI.

Full time and part time employeesThere are significantly more full time workers in the South West than part time.

Full time employees Part time employees

63,200 15,900

Employed and self employed workersThere are significantly more employed people in financial services in the South West than self employed. This is representative of the entire financial services workforce UK wide however.

Number of employed workforce Number of self employed workforce91,500 5,700

Please note that the figures in the table above are not consistent with the 78,357 stated in the introductory paragraph as the source is from the LFS and not ABI.

ForecastingIt is not currently possible to provide accurate information regarding the forecasting of the changes that will occur in the financial services labour market due to the current economic conditions.

Skill shortagesThe South West benefits from the abilities of a highly skilled workforce, but is one which cannot be replenished or expanded easily due to skills shortages. Skill shortages in the South West mirror those of the wider UK. These are shown in the table below by level of occupation.

Top 3 areas of skill improvementsOccupation Areas

Customer services staff

Understanding client needsProduct knowledgeNumeracy

Managers & senior managers

Positive management of staff relationshipsIT systemsProduct knowledge

Professional & technical staff

Understanding client needsPositive management of staff relationshipsIT systems

Sales staffProduct knowledgeNumeracyUnderstanding client needs

School leavers & graduates

Industry knowledgeUnderstanding client needsProduct knowledge

Secretarial & administrative staff

Industry knowledgeBusiness language - Written communication and literacyUnderstanding client needs

FSSC Employer Surveywww.fssc.org.uk/the_skills_bill___analysis_of_skills_needs_in_uk_financial_services__for_web_.pdf

2.15.8 Financial Services in the West MidlandsBirmingham is the region’s sole financial services cluster, which focuses on banking, general insurance and credit. Owing largely to Birmingham’s specialisation, the region is the second largest employment hub in credit after the South East, with HSBC Asset Finance the largest employer in the sector.

There are 66,870 people employed in financial services in the West Midlands. The average earnings are £28,856 per annum.

Gender breakdownThere are more females in the West Midlands financial services labour market than male.

Male Female

West Midlands 26,237 40,634

Age range of workforceThere are more financial services employees in the 25 - 44 years age bracket in the West Midlands. The bracket for this age group is wider than the others and this does explain the increased number of employees.

Age (yrs) Number of employees16 – 24 14,70025 – 44 36,80045 – 54 19,70054+ 5,000

Please note that the figures in the table above are not consistent with the 66,870 stated in the introductory paragraph as the source is from the LFS and not ABI.

Full time and part time employeesThere are significantly more full time workers in the West Midlands than part time.

Full time employees Part time employees52,598 14,272

Employed and self employed workersThere are significantly more employed people in financial services in the West Midlands than self employed. This is representative of the entire financial services workforce UK wide however.

Number of employed workforce Number of self employed workforce70,600 5,500

Please note that the figures in the table above are not consistent with the 66,870 stated in the introductory paragraph as the source is from the LFS and not ABI.

ForecastingIt is not currently possible to provide accurate information regarding the forecasting of the changes that will occur in the financial services labour market due to the current economic conditions.

Skill shortagesSkill shortages in the West Midlands mirror those of the wider UK. These are shown in the table below by level of occupation.

Top 3 areas for skill improvementsOccupation Areas

Customer services staff

NumeracyTechnical and practical knowledgeCoping with stress or pressure

Managers & senior managers

Project and people organisationPositive management of staff relationshipsAbility to communicate clearly at all levels

Professional & technical staff

Doing more than expectedAbility to communicate clearly at all levelsUnderstanding client needs

Sales staffProduct knowledgeSelf-motivation and directionBusiness language - Written communication and literacy

School leavers & graduates

Doing more than expectedIndustry knowledge

Ability to communicate clearly at all levels

Secretarial & administrative staff

Product knowledgeIndustry knowledgeSelf-motivation and direction

FSSC Employer Surveywww.fssc.org.uk/the_skills_bill___analysis_of_skills_needs_in_uk_financial_services__for_web_.pdf

2.15.9 Financial Services in Yorkshire and the HumberThere is an emphasis on retail banking and an occupational mix weighted towards lower value-added roles in Yorkshire and the Humber. Banks employ more than half the region’s financial services workforce, followed by non-life insurance and auxiliary services. This activity is centered on Leeds, where one-third of the region’s financial services staff work. In addition to banking and insurance, Leeds also has a high concentration of employment in credit granting. Major employers include First Direct, Privilege Insurance, Yorkshire Bank and the Bank of England.

There are 88,285 people employed in financial services in Yorkshire and the Humber. The average earnings are £30,324 per annum.

Gender breakdownThere are more females in Yorkshire and the Humber financial services labour market than male.

Male FemaleYorkshire and the Humber 38,110 50,175

Age range of workforceThere are more financial services employees in the 25 - 44 years age bracket in Yorkshire and the Humber. The bracket for this age group is wider than the others and this does explain the increased number of employees. Age (yrs) Number of employees16 – 24 14,80025 – 44 56,50045 – 54 16,80054+ 8,300

Please note that the figures in the table above are not consistent with the 88,285 stated in the introductory paragraph as the source is from the LFS and not ABI.

Full time and part time employeesThere are significantly more full time workers in Yorkshire and the Humber than part time.

Full time employees Part time employees68,000 18,100

Employed and self employed workersThere are significantly more employed people in financial services in the Yorkshire and the Humber than self employed. This is representative of the entire financial services workforce UK wide however.

Number of employed workforce Number of self employed workforce92,600 3,700

Please note that the figures in the table above are not consistent with the 88,285 stated in the introductory paragraph as the source is from the LFS and not ABI.

ForecastingIt is not currently possible to provide accurate information regarding the forecasting of the changes that will occur in the financial services labour market due to the current economic conditions.

Skill shortages

Yorkshire and the Humber is threatened by a combination of significant skills gaps and an insufficient supply of skills through the labour market. Skill shortages in Yorkshire and the Humber mirror those of the wider UK. These are shown in the table below by level of occupation.

Top 3 areas for skill improvementOccupation Areas

Customer services staffMoving on from criticism or setbacksDoing more than expectedTechnical and practical knowledge

Managers & senior managers

Positive management of staff relationshipsMoving on from criticism or setbacksFlexibility and co-operation

Professional & technical staff

Working effectively with others in a teamDoing more than expectedUnderstanding client needs

Sales staffProduct knowledgeDoing more than expectedCoping with stress or pressure

School leavers & graduatesIndustry knowledgeProduct knowledgeSelf-motivation and direction

Secretarial & administrative staff

Industry knowledgeAbility to resolve issues and use initiativeFlexibility and co-operation

FSSC Employer Surveywww.fssc.org.uk/the_skills_bill___analysis_of_skills_needs_in_uk_financial_services__for_web_.pdf

2 Annual Survey of Hours and Earnings, 2008 and FSSC calculation