Future-proofing securities – tackling AI and talent gaps

VIDEO | The securities services industry must urgently adapt its hiring practices and workforce development to meet the challenges posed by emerging technologies like AI, according to industry leaders during the recent ISSA board discussion at PostTrade 360° Norris 2024 stage. With artificial intelligence set to transform the way the sector operates, experts warned that traditional recruitment strategies are no longer enough to equip the industry for the future.

“The people we are hiring today will be in junior management positions in five years, but we haven’t changed the profile of who we’re hiring,” said Philip Brown, CEO of Clearstream Banking SA. Brown highlighted that as AI becomes more integrated into securities services, employees will need a new blend of skills—particularly in bridging business needs with technology solutions.

Brown emphasised the importance of emotional intelligence (EQ) in future employees, noting that while machines will increasingly handle tasks like coding, human oversight will be essential to interpret client needs and direct AI systems. “We need people who are comfortable with technology, but are not technologists themselves,” he explained. Brown called for the industry to urgently rethink its recruitment strategies to ensure it attracts the right talent for this evolving landscape.

Attracting and retaining talent

Margaret Harwood-Jones, global head of Securities Services at Standard Chartered, spoke about the challenges of drawing younger talent into the niche field of securities services. “We need to step up our efforts in attracting and developing junior talent,” she said, noting that many potential recruits don’t understand what the industry does.

Harwood-Jones also pointed to the ongoing gender imbalance in the sector. “There’s much more we can do. We’re not as bad as some parts of financial services, but we’re far from being best in class,” she said. She shared that ISSA recently launched the “Women in ISSA” initiative to build a global network of women in securities services, offering collaboration and mentorship opportunities. ” Honestly, we were blown away with the reaction we got, with the conversations we had and how open people were” she added, underscoring the need for such programs.

The industry’s image problem

Brown admitted that the industry suffers from a perception problem, which contributes to difficulties in attracting talent. “I’ve worked in this industry for over 30 years, and my mom still has no idea what I do for a living,” Brown joked. He suggested that part of the issue lies in how the industry markets itself. Instead of positioning securities services as purely technological, Brown argued that firms should highlight the sector’s global impact. “If you’re interested in geopolitics and how financial services connect the world, that’s what we do,” he said, urging the industry to emphasise its role in shaping the global financial system.

Roland Chai, president of European Markets at Nasdaq, stressed the importance of promoting innovation within teams and providing clear paths for career mobility. “Post-trade may not seem exciting at first glance, but it can be innovative,” Chai said. He encouraged firms to challenge employees to think creatively and find ways to improve processes, either through new technology or rethinking traditional workflows.

Chai also emphasised the need for clear career progression opportunities. “If someone’s in operations or corporate actions, they need to see a path forward. How does their role evolve over time?” he asked, explaining that providing employees with exposure to clients and opportunities for growth is key to retaining talent.

Problem solvers wanted

Brown argued that the industry should market itself as a place for problem solvers. “Do you like solving problems? Do you have an engineering mindset? Do you enjoy working with people? That’s the kind of person we need,” he said, highlighting that while much of the sector is automated, the value lies in tackling the remaining 2 per cent of issues that require creative solutions. Brown emphasised that this approach would attract those eager to work at the intersection of technology and client relationships.

Bridging the education gap

The panelists also acknowledged that the securities services industry suffers from a lack of formal education and awareness. An audience member raised the issue of the absence of university courses on post-trade services, which leaves many potential recruits unaware of the sector’s opportunities. Harwood-Jones agreed, adding, “We’re missing top talent because the understanding isn’t there. We haven’t got the outreach in the right places.”

Brown shared an anecdote about his own education in the 1980s, recalling a rare university lecture on global custody. “At least I knew what global custody was when I entered the industry,” he said, underscoring the value of early exposure to the field. “That’s why it’s important for us to have this discussion at the board level,” Harwood-Jones, advocating for broader outreach.

Panellists:
Philip Brown, CEO, Clearstream Banking SA
Roland Chai, president of European Markets, EVP, Nasdaq
Margaret Harwood-Jones, managing director, Global Head of Securities Services, Standard Chartered
Ankush Zutshi, managing director, S&P Global Market Intelligence

Moderator:
Colin Parry, CEO, International Securities Services Association

Hosted by International Securities Services Association (ISSA).

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