Financial Services Face Talent Challenge as Generational Divide Widens

The global banking and financial services sector is facing a growing talent development challenge as younger and older employees show significant differences in their preferred and actual working patterns, according to new research from ACCA (the Association of Chartered Certified Accountants).

More than 900 finance professionals from the banking and financial services sector worldwide participated in ACCA’s Global Talent Trends 2026 survey, which examined career ambitions, artificial intelligence, sustainability, social impact, inter-generational collaboration and workplace practices.

Gen Z More Likely to Work From Office

The survey found a marked generational gap in office attendance. More than half of Gen Z respondents, or 52%, said they work full time from the office, compared with 33% of Gen X and just 14% of Baby Boomers.

Jamie Lyon, Head of Skills, Sector and Technology at ACCA, said time spent with older and more experienced colleagues can provide younger employees with valuable real-world learning opportunities and support stronger cross-generational collaboration.

He said the mismatch in working patterns could have implications for future skills development and workplace culture, particularly as most employees continue to favour hybrid working.

Financial services employers therefore need to consider how office presence can be balanced to support collaboration, knowledge sharing and learning across different generations, Lyon added.

Middle East Employers Face Talent Development Question

The findings also have implications for financial services employers in the Middle East, where organisations are continuing to attract younger professionals while adopting more flexible working arrangements.

Kush Ahuja, Head of Eurasia and Middle East at ACCA, said the research raises important questions about how the sector can develop its next generation of talent.

He said employers need to look beyond the number of days employees spend in the office and focus on how knowledge and experience are transferred between generations.

Creating opportunities for younger professionals to work alongside experienced colleagues, while ensuring employees at different stages of their careers continue developing relevant skills, will be increasingly important as the region’s financial services sector evolves, Ahuja said.

Employees Link Office Presence to Career Progression

The survey found that 55% of respondents believe spending time in the office has a positive impact on promotion opportunities.

At the same time, 61% of financial services professionals surveyed agreed that organisations should require employees to spend a fixed number of days in the office.

The findings suggest that while hybrid working remains the preferred model for many employees, workplace presence continues to be viewed as important for career development, networking and access to experienced colleagues.

AI Raises Concerns Over Hiring and Job Security

Artificial intelligence emerged as another major concern for financial services professionals.

Around 55% of respondents expressed concerns about the use of AI algorithms in hiring processes. Among board-level financial services leaders surveyed, 56% also expressed doubts about the increasing reliance on AI when selecting talent.

Concerns extend beyond recruitment. While 81% of finance professionals remain confident in their ability to develop AI-related skills, more than half, or 52%, remain worried about the potential impact of AI on their jobs.

The findings highlight the challenge for financial institutions as they seek to adopt AI while ensuring employees have opportunities to develop the skills needed to work alongside increasingly automated systems.

Demand Grows for Finance Roles With Social Impact

The survey also points to changing expectations around the purpose of financial careers.

Around 59% of respondents said they want future finance jobs to contribute to addressing environmental and climate challenges, while 64% want roles that create a positive social impact.

The findings suggest that financial professionals increasingly expect employers to connect career opportunities with wider environmental and social objectives.

Older Workers Seen as Valuable to Financial Services

Demographic changes are also expected to influence the composition of the financial services workforce.

The survey identified recognition of the value that older workers bring to the sector as the biggest diversity concern among respondents.

The finding reinforces the importance of creating workplaces where different generations can contribute their experience while also providing opportunities for younger employees to develop through collaboration and knowledge transfer.

Cost of Living and Mental Health Remain Key Concerns

Financial pressures continue to affect employee sentiment, with 54% of respondents saying they are dissatisfied with their current compensation as cost-of-living pressures continue to influence wage expectations.

Mental health is another significant workplace concern. 57% of respondents said their mental health suffers because of work pressures, highlighting the importance of employee wellbeing alongside career development and financial rewards.

For financial services employers, the findings point to a broader talent challenge that extends beyond recruitment. Flexible working arrangements, inter-generational knowledge sharing, AI skills, compensation, career progression and employee wellbeing will all play a role in shaping the sector’s future workforce.