The opinions expressed here are those of the authors. They do not necessarily reflect the views or positions of UK Finance or its members.

We know from government figures that, like the UK as a whole, the FS sector has an ageing workforce. However, the sector is suffering more than most. In fact, around one in six (18.1 per cent) workers aged 50 to 64 years are employed in the banking and finance sector. This means that over the coming decade or so, the sector stands to lose a sizeable segment of its talent to retirement. 

Unfortunately, new talent is not coming through fast enough, or in great enough volumes to plug that gap. In fact, one survey found that almost three quarters (71 per cent) of financial professionals in the UK are looking for a new job outside of the profession.

We must then add into that mix that technology within our sector continues to change at pace meaning that organisations constantly require new knowledge and skills to keep up.

The result is a perfect storm, in which a lack of new, young talent holds back progress, innovation and growth.

Apprenticeships as a solution

National Apprenticeships Week (10-14 February 2025) is an annual event dedicated to promoting the benefits of apprenticeships to employers and candidates. It’s a chance for us to promote the great careers that FS has to offer apprenticeship candidates. 

While apprenticeships can’t plug the digital skills gap alone, they do have a significant part to play. This is evidenced by the experiences of the many organisations in FS that are already using apprenticeships in their recruitment. At Davies, we commissioned research last year to explore organisations’ attitudes to apprenticeships. 504 full-time employees survey respondents from UK FS firms were asked about their organisation’s approach to apprenticeships. We found that:

• 57 per cent said their organisation has an apprenticeship in place
• Of those, 73 per cent said that permanent roles are typically offered to people who take part in the scheme
• 71 per cent say that having an apprenticeship scheme is more cost-effective when bringing new staff into their organisation compared to recruiting graduates or junior staff

We also found that the benefits extend beyond improving the cost-effectiveness of the recruitment process. Respondents also cited that apprenticeship schemes help build employee loyalty (85 per cent) and that it often leads to participants having long-term careers with their company (78 per cent). Further, 87 per cent stated their schemes aim to create pathways for diverse talent, enabling a wider range of people to build careers in FS.

However, there is still work to be done in communicating these benefits more widely. Of those organisations without an apprenticeship scheme, 15 per cent of respondents said they do not know how to take advantage of the Apprenticeship Levy, 11 per cent do not know how to establish an apprenticeship scheme, while a fifth (19 per cent) said they do not see the value in running a scheme. 

We know from experience that the system is not perfect. As well as boosting the number of young people undertaking apprenticeships, a reduction in the bureaucracy of apprenticeship and steps to reduce the withdrawal rate are needed.

But change is coming. The Labour government has already been vocal in its support for and development of apprenticeships; for example, by replacing the current Apprenticeship Levy with a new Growth and Skills Levy and introducing foundation apprenticeships to provide young people with pathways into critical sectors. As a new body, all eyes are now on Skills England to deliver a long-term, joined-up strategy for apprenticeships across the country, with flexible funding, reduced bureaucracy, and continued engagement with employers.

While apprenticeships are not a silver bullet to the sector’s recruitment problems, it’s clear that experiences of hiring apprentices are overwhelmingly positive. As such, it’s vital that organisations have access to the knowledge and support necessary to take full advantage of them.