Research identifies flaws in financial services
Australia may be driving to become a regional financial services hub, but the local financial services sector is not doing enough to either attract skilled workers or retain talented employees, according to new research released today by the Financial Services Institute of Australasia (FINSIA).
The research, conducted by Roy Morgan Research, has examined the patterns of the Australian workforce over the past decade between 1997 and 2007 and suggests that Australia’s rising talent shortage threatens to stymie growth, innovation and the global competitiveness of the financial services sector.
The research has also identified what it describes as “an alarming disparity regarding the participation rates of men and women in the finance sector”.
“The proportion of females working in the finance industry has fallen 3 per cent to 45 per cent since 1997, with female participation in the sector dropping off particularly in the older age groups,” it said.
It also suggested that the finance sector had done little to break down what it described as “historic barriers facing women in the sector”, with women employed at disproportionately lower levels to men in terms of both roles and income levels.
Commenting on the research, FINSIA chief executive Martin Fahy said that while Australia’s open economy, enviable regulatory environment and impressive funds management industry had ensured a strong position in global financial markets, maintaining a competitive edge would increasingly depend on a pool of skilled professionals.
The findings indicate that Australia’s finance sector risks losing ground to regional competitors if productivity and growth levels fail to increase, he said.
AUTHOR
Mike Taylor
Recommended for you
Financial Services Minister, Stephen Jones, has assured the cost and time to enter the financial advice profession will soon be halved, as shadow treasurer Angus Taylor pledges to reach 30,000 advisers.
The positive results of the latest financial adviser exam have helped the advice profession reach 15,600 yet again, according to Wealth Data analysis.
Financial advice firms have told Adviser Ratings they are planning to increase their compliance spend by almost a third, including on enhancements to their cyber security which ASIC has identified as an enforcement priority.
The digital advice platform is officially launching into the financial advice sector, offering up its services to practices as a means of engaging with the next generation of clients.
