More than 20 financial services organisations have committed to a new government-backed agreement to close the sector’s widening skills gaps.
The Financial Services Skills Compact, which the Chancellor formally unveiled during her annual Mansion House speech, is a shared agreement bringing together government, the Financial Services Skills Commission and industry firms to tackle workforce shortfalls collectively.
Twenty-two organisations have put their names to the initiative so far, spanning high street banks, leading insurers, building societies, investment managers, digital banks and trade bodies. Between them, these signatories employ upwards of 250,000 people.
The agreement arrives at a critical juncture for an industry that provides jobs for roughly one million people across the UK and serves as a key engine of economic growth. Firms are grappling with pressures from new technology, demographic shifts and changing customer demands, with the swift uptake of artificial intelligence and other disruptive tools intensifying these forces.
The Compact was first announced by HM Treasury alongside the 2025 Financial Services Growth and Competitiveness Strategy. The Financial Services Skills Commission has led its development, with backing from the City of London Corporation and TheCityUK.
Under the agreement, signatories will upskill staff in AI and other priority capabilities, expand structured entry routes for new talent, appoint a senior executive accountable for closing skills gaps, and publish yearly progress reports against their pledges.
HM Treasury Economic Secretary Rachel Blake MP said, “The Skills Compact is a central part of our ambitious plans to address skills gaps, including more investment in critical skills and getting more people into financial services. The backing of more than 20 organisations is a significant opportunity to deliver the workforce skills that are fundamental to the UK sector’s competitiveness, innovation and global leadership.”
Financial Services Skills Commission chair Mark Hoban said, “Financial services is facing unprecedented disruption from AI and other technologies. Firms and the Government need to respond positively to this if the UK is to remain a world leading financial centre. We welcomed HM Treasury’s commitment last year to putting skills at the heart of the Competitiveness and Growth Strategy and today’s successful launch of the Skills Compact is the industry’s response to this challenge.”
Financial Services Skills Commission chief executive Claire Tunley said, “The Financial Services Skills Compact is the most significant agreement on skills between government and employers in a generation. Its timing couldn’t be more important. The sector is at a pivotal moment; it needs to close skills gaps by focussing on upskilling and reskilling its own people, building a pipeline of new talent, and promoting a culture of continuous learning.
“These early signatories are taking the lead, embracing highly ambitious commitments that will benefit at least a quarter of a million employees. The fact that more than 25 organisations have already signed the Skills Compact, including some of the largest firms in the UK, signals the importance of skills to productivity and economic growth.”
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