Like many financial groups, Bank of America faces a shortage of technology workers for digital operations. The response was to retrain their workers at an internal online “university” and become inward-looking.
Cathy Bessant, Chief Operating Officer and Technical Officer at BofA, said the bank will set up a training department in 2018 to teach staff, from tellers to traders, skills such as coding and data analysis.
Because the pace of digitization has increased Competition for workers As technical skills become more powerful, BofA relies more on its workers to fill that void, thereby reducing employment costs.
According to BofA, more than 80% of Bessant’s departmental hires over the past 12 months have been internal hires, compared to 39% before the pandemic. US banks have not disclosed specific numbers, but said they have hired “thousands” to work in operations and technology.
“There is no doubt that it will take some time to fill the openings, so internal recruitment goals can actually help relieve pressure,” says Besant. “Now we need to make sure that the mechanisms we have put together to train and retrain on a large scale to meet that need are institutionalized.”
Overall, BofA cut 2,500 jobs in the second quarter of this year after the pandemic blockade accelerated the adoption of online banking.Analysts predict that automation will eliminate up to 200,000 jobs from the US banking industry Over the next 10 years.
However, as BofA pivoted to keep up with the demand for digital services during the pandemic, Bessant’s team is stable at around 95,000, accounting for just under half of the bank’s total workforce. Digital channels accounted for 44% of all account openings and loan formations during the three months from 39% of the same period in 2019 to the end of June.
In-house hiring has helped banks reduce their reliance on labor market circulation, according to Besant.
“It’s a way to grow responsibly,” she said. “I’m more confident that future needs can be met by today’s employees.”
Formal employee training programs are rare in the United States, but the number continues to grow. According to labor analysis software company Burning Glass, only 1.7% of employers were willing to provide vocational training to workers in June, an increase of 49% from the same period in 2019.
Other Wall Street groups have launched initiatives to re-skill workers as technologies such as artificial intelligence, automated trading and digital underwriting are rebuilding banking operations.
JPMorgan Chase has invested hundreds of millions of dollars in training programs in recent years and needs analysts in asset management and investment banking. Take a coding class..
BofA’s Tech Worker Program reflects strategies in other parts of the business. In 2017, BofA’s Wealth Management Division said it would shift its focus from the expensive practice of poaching veteran brokers from competitors to training inexperienced new hires.
Bank of America fights war for tech talent by retraining own employees Source link Bank of America fights war for tech talent by retraining own employees