AI is changing the way financial services workers consume content and learn.Noko LTD/iStockPhoto / Getty Images
The rise of artificial intelligence is resulting in fewer entry-level positions at financial services firms around the world as they look to cut costs by automating functions and reducing staff.
That, in turn, is creating a challenge for investment industry education providers that offer courses and programs for those looking to work in financial services.
Paul Taylor, president and chief executive officer of Fitch Group, says this development is “a headwind against our learning business.”
Nevertheless, he adds, “We think there is tons of room for us to grow.”
Financial professionals “are still going to need to develop and learn,” he says. “For example, I’m pretty sure by the end of this year we’ll have several AI training modules [on] how to use AI in the context of different industries, so that’s a business opportunity for us.”
AI will transform how financial services industry workers upgrade their training and skills, with firms expecting staff to get up to speed more quickly.
Although these firms may cut jobs in some business areas, they’re still hiring in others as they restructure roles, says Andreas Karaiskos, chief executive officer of Fitch Learning, the financial education arm of Fitch Group.
For example, while an analyst at an investment bank might have worked three years before being promoted to an associate, they may now be expected to make the jump sooner as firms use AI to perform entry-level work, such as running Excel models.
Organizations that can train staff on “the most relevant stuff quicker” will have the competitive advantage, Mr. Karaiskos says.
“We talk with our clients about ‘learning velocity,’” he says. “How do you accelerate the consumption of learning to maximize your return on investment? You can do that with AI.”
Last year, Fitch Learning acquired the Canadian Securities Institute from rival rating agency Moody’s. In January, it began administering the exams offered under the Canadian Investment Regulatory Organization’s new proficiency and licensing regime for advisors.
Mr. Karaiskos says Fitch is looking to upgrade and enhance the content of CSI’s designations and courses – such as introducing more material on private credit markets – by leveraging the depth of its global library.
However, Fitch will also be looking to enhance “the way people consume the content and how they learn,” he says.
For example, the firm is working on AI simulations “that understand your learning needs, your learning gaps, can adapt to your choice of language, can ingest huge amounts of content and then synthesize that in an impactful way,” Mr. Karaiskos says.
Mr. Taylor says AI may allow Fitch to develop educational products in a way that would have presented challenges before.
For example, the company took on a contract several years ago to provide training in seven languages for a Switzerland-based wealth management firm that ultimately had to be scrapped when the translations, which were completed by human translators, were found to be unreliable.
Earlier this year, Fitch developed a financial education app, using non-proprietary technology, featuring an AI persona that can accurately switch between languages on demand, Mr. Taylor says.
Mr. Karaiskos says he doesn’t yet see AI replacing all other modes of learning, such as in-person instruction.
Financial services firms looking to attract and retain the best talent will still want to demonstrate they can offer new recruits paths to development, including accreditations and experiential learning.
“Smart organizations are always refreshing [job] roles, looking at efficiencies, looking at what skills they need to become nimble,” he says.