By Philip Grant
AS the immediate health crisis caused by Covid-19 recedes, attention has turned to how we secure a long-term and sustainable recovery that can support the society in which we wish to live.
One of the key challenges for the Scottish economy will be employment and skills – particularly for those in their late-teens to mid-twenties and currently in, or about to leave, education. We know from previous crises that this cohort is most at risk from long-term economic scarring caused by mass unemployment.
This has been recognised by policymakers across the UK. Last month, Chancellor Rishi Sunak announced the kickstart scheme, which will subsidise six-month work placements for people on Universal Credit aged between 16 and 24, who are at risk of long-term unemployment.
Here in Scotland, Sandy Begbie, a financial services veteran, has been tasked by the First Minister with leading plans to develop a jobs guarantee for young Scots.
Scotland’s diverse financial services sector is ready to play its part in addressing this issue. As an industry, we employ more than 160,000 people across banking, life and pensions, asset management, and professional services, and serve the needs of millions of customers and clients in Scotland, the UK, and across the world.
Many organisations and sectors face tough decisions in the coming months, and financial services is no different. However, if we are to retain Scotland’s pre-eminent position in this area, skills development and continuing to bring through fresh talent cannot fall by the wayside. Providing a platform for the next generation to enter the industry and upskilling existing colleagues so we are ready for the challenges of the future must remain a priority.
Raising digital literacy will be critical. Scottish Financial Enterprise believes a nationally coordinated business-led initiative is required to ensure Scotland is ready to seize the financial technology opportunities that will arise from this crisis and build on our growing reputation as a fintech hub. In the past year alone, the number of fintech SMEs operating here has increased 99 per cent, from 72 to 143, and we are aiming for further innovation and growth in this area.
We also recommend an expansion of fast-track reskilling and direct entry through bespoke further education courses. This approach was piloted in Glasgow in partnership with Skills Development Scotland last year. The six-week work-readiness course, co-designed and delivered by SFE members, focused on HNC/D and degree level graduates seeking careers in financial and professional services who needed work-readiness support.
Its success means it can be scaled across Scotland and prepare a larger number of applicants for a career in financial services. We are encouraging our members to engage with this ready-made talent stream.
Looking longer-term, the Financial Services Unified Schools Programme, run in partnership with Developing the Young Workforce and Skills Development Scotland, was established by SFE to encourage and inspire school pupils to consider and explore the wide variety of career opportunities offered by financial services.
It is in the interests of both the industry and the younger generation not to repeat past mistakes.
From providing the loans that allow people to buy their own home or start a business, to managing the funds that invest in the economy and help people build their pensions, Scotland’s strong financial services sector is a linchpin of the economy. This can only continue if we have the right skills and talent – now and in the future.
Philip Grant is chairman of Scottish Financial Enterprise
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