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Twenty-First Century Skills in Finance: Prospects for a Profound Job Transformation

Author

Listed:
  • Alina Lavrinenko

    (National Research University Higher School of Economics, Russia)

  • Natalia Shmatko

    (National Research University Higher School of Economics, Russia)

Abstract

This paper analyzes the impact of breakthrough technological areas, such as artificial intelligence (AI), big data, the internet of things, and blockchain upon on conventional banking professions and skill sets. Our conclusions are based upon a large array of data collected over the course of a survey of top personnel conducted in 2017-2018 using text mining, case studies, and expert interviews. The changing requirements for workers and their competences were assessed taking into account the level of technological development (including use of relevant products and services by Russian and international companies) as well as the probability of certain professional skills being substituted by automated solutions in the medium term. The results indicate that technologies’ impact upon various functional segments of banks’ operations is varied. While most of the analyzed professions are evolving towards broader functionality, others are sliding into the “obsolete” group. In the next few years, automated systems will take full responsibility for data collection and its initial analysis, though they will not replace bank personnel fully given that they simply remain tools that help boost workers’ productivity and efficiency, extend the information base, accelerate decision-making, cut costs, and reduce risks.

Suggested Citation

  • Alina Lavrinenko & Natalia Shmatko, 2019. "Twenty-First Century Skills in Finance: Prospects for a Profound Job Transformation," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 13(2), pages 42-51.
    • Handle: RePEc:hig:fsight:v:13:y:2019:i:2:p:42-51
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    References listed on IDEAS

    as
    1. Vivarelli, Marco, 2007. "Innovation and Employment: A Survey," IZA Discussion Papers 2621, Institute of Labor Economics (IZA).
    2. Tom Walker, 2007. "Why economists dislike a lump of labor," Review of Social Economy, Taylor & Francis Journals, vol. 65(3), pages 279-291.
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    Cited by:

    1. Monica Mihaela Maer Matei & Anamaria Beatrice Aldea, 2019. "Employers’ Requirements for Data Scientists - an Analysis of Job Posts," Logos Universalitate Mentalitate Educatie Noutate - Sectiunea Stiinte Economice si Administrative/ Logos Universality Mentality Education Novelty - Section: Economical and Administrative Sciences, Editura Lumen, Department of Economics, vol. 4(1), pages 21-32, December.
    2. Sergey Belozyorov & Olena Sokolovska & Young Sik Kim, 2020. "Fintech as a Precondition of Transformations in Global Financial Markets," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 14(2), pages 23-35.
    3. Kapelyuk, Sergey & Karelin, Iliya, 2023. "Digital Skills: Classification, Empirical Estimates of the Demand," MPRA Paper 119644, University Library of Munich, Germany.

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    More about this item

    Keywords

    21st century skills; job automation; banking professions; breakthrough technologies; competences for the future;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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