# Banks latest earnings – Rethinking profitable avenues to compete with new entrants Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-07-28 Category: BANKING Category URL: https://financedigest.com/category/banking Meta Title: Financial Services Facing Talent Shortage Amid Disruptive Meta Description: Discover how regulatory changes, new players, and Brexit are shaping the battle for skilled technology talent in the financial sector. Tags: featured Tag URLs: featured (https://financedigest.com/tag/featured) URL: https://financedigest.com/banks-latest-earnings-rethinking-profitable-avenues-to-compete-with-new-entrantshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/businessman-and-businesswom-1-1736843642156-compressed.jpg) The bank results out this week show the impact of regulatory changes, evolving customer behaviour and new players entering the sector on their quarterly earnings. Disruptive shifts in labour movements caused by Brexit are making access to talent and expertise a key focus for financial services. The upcoming PSD2 regulation also adds a new dimension to the digital competition which banks face. Financial institutions are also increasingly having to compete with agile [technology firms](https://www.financedigest.com/technology-trends-heat-up-for-financial-firms.html "Technology trends heat up for financial firms") for talent with the same skill sets. [\[1\]](#_ftn1) Traditional banks are fighting against the perception of being conservative institutions. Compared with other industries, traditional financial [services face stiff competition when it comes to persuading technology talent](https://www.financedigest.com/how-financial-services-organisations-can-win-the-battle-for-talent.html "How Financial Services Organisations can win the Battle for Talent") to join. [Difficulty in finding talent in the market](https://www.financedigest.com/travis-perkins-warns-on-profit-in-sign-of-uk-housing-market-difficulty.html "Travis Perkins warns on profit in sign of UK housing market difficulty") is being acknowledged by business leaders. However it is not being reflected in the action to address tech skills concerns. [According to PwC,70 percent of financial services CEOs](https://www.financedigest.com/senior-leaders-more-at-risk-of-burnout-than-ceos-according-to-new-research.html "Senior leaders more at risk of burnout than CEOs, according to new research") see the limited availability of skills as a threat to growth, yet only 28 percent are redirecting their focus onto the skills and adaptability of their people. [\[2\]](#_ftn2) According to **Farida Gibbs, CEO of Gibbs Hybrid comments,** “Over the last couple of years, traditional banks have had to compete with new players who want to take a slice of the banking pie – it is not just their industry peers, but companies in other industries and also [innovative technology](https://www.financedigest.com/research-and-technological-innovations-to-bolster-developments-in-polycarbonate-resins-market.html "Research and Technological Innovations to Bolster Developments in Polycarbonate Resins Market") companies. Most recently, Orange the [French telecoms company](https://www.financedigest.com/exit-from-taiwan-lifts-shares-of-french-company-carrefour.html "Exit from Taiwan lifts shares of French company Carrefour"), announced it was going to launch an online bank as new legislation levels the playing fields between existing banks and new providers. Without the brains to understand, implement and innovate, financial institutions won’t be able to optimise the use of the [latest technologies and gain business value to generate](https://www.financedigest.com/how-can-banks-defend-the-latest-generation-of-scam-victims.html "How can banks defend the latest generation of scam victims?") profitable outcomes.” “As PSD2 [requires banks](https://www.financedigest.com/how-to-fulfil-the-digital-transformation-requirement-in-banking.html "How to fulfil the Digital Transformation Requirement in Banking") to open their data to other suppliers, banks cannot go at their own pace when it comes to innovation. The race is on with other [payment providers who are creating their own solutions which are better aligned to customer needs](https://www.financedigest.com/instant-payments-and-the-need-for-standardization.html "Instant payments and the need for standardization"). Technology talent who have the skills in security, cloud and mobile development will empower banks to build their own applications and user friendly interfaces when it comes to payments which will differentiate them from the [Fintech](https://www.financedigest.com/the-role-of-fintech-in-shaping-innovative-future.html "The Role of Fintech in Shaping Innovative Future") innovators.” **Farida continues,** “As banks and Fintechs go head-to-head, having access to the skills and talent to navigate through the changing banking landscape will allow banks to maintain their market share. New entrants are agile and better able to respond to changing customer [expectations and so banks are having to open their doors to the right people who can take them to the next](https://www.financedigest.com/the-death-of-cards-and-what-to-expect-next.html "The death of cards and what to expect next") level. It is important to revamp their banking model and harness the power of new technologies to become more customer focused.” [\[1\]](#_ftnref1) http://blog.executivesonline.co.uk/blog/why-financial-services-companies-are-losing-the-war-for-top-talent [\[2\]](#_ftnref2) https://www.pwc.com/gx/en/industries/financial-services/publications/talent-in-financial-services.html --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---