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Preparing the Next Generation to Close the Digital Skills Gap in Financial Services

Preparing the Next Generation to Close the Digital Skills Gap in Financial Services

Jonathan Sharp

11th March 2025

The Future of the UK and AI Opportunities Action Plan

Prime Minister Sir Keir Starmer recently announced his ‘AI Opportunities Action Plan,’ to accelerate AI adoption across the UK to boost economic growth and create future jobs. Yet he failed to address the UK’s increasing digital skills gap where a shocking 59% of the working population (around 23.4 million people) cannot perform 20 basic digital tasks necessary for work. Plus, how difficult it is for Financial Services to recruit individuals with advanced digital skills such as cyber security, AI and data analysis.

As digital technology continues to explode exponentially and takes over our personal and professional lives, it is difficult to keep up with the advancements of artificial intelligence (AI), cybersecurity and the impending rollout of 5G. It is evident that we need to educate children in schools on how to use this technology and how it is applied in the world of work. Financial Services businesses need to implement a continuous learning and development programme in the workplace on the latest digital technologies for employees. Teaching them how to use tech to augment their daily tasks and improve efficiencies. Without a decisive action plan, the UK will not become a tech superpower and will lag behind the rest of world with a stagnating economy.

The Wrong Move

Starmer’s announcement to eliminate computer hubs in schools and cut funding for Level 7 apprenticeships which is equivalent to a Master’s degree has led to widespread criticism. These measures are counterproductive as schools require the latest tech to educate and enable students and cutting investment in this area undermines progress. Taking one step backwards instead of forwards.

Likewise, Level 7 apprenticeships are crucial for cultivating specialist skills in AI and other disruptive technologies, enabling the UK to remain competitive in a rapidly changing landscape. Eliminating these qualifications jeopardises the nation’s ability to stay ahead of the AI innovation curve and fall behind.

Modernising School Curriculum

One of the fundamental issues contributing to the digital skills gap lies within the education system itself. The current computing curriculum despite being renewed in 2014 is outdated and heavily focused on coding and programming. It needs a complete overhaul to incorporate modern technologies such as AI, robotics, and machine learning. By doing so, schools can better prepare students for a job in Financial Services equipping them with the necessary skills they need.

Teaching and Learning with AI

Teachers like everyone else are getting to grips with AI and starting to use it on a daily basis, but it is more challenging for them because they have to ensure students are not using it to plagiarise.

Mr Sean Wilson, Head of Sixth Form, Lord Williams School comments, “We have had to put in a set of different assessment policies with extra layers of checking to ensure students are not cheating. This has impacted the marking process and slowed everything down, plus the AI verification scanners are not 100% reliable.

There hasn’t been any directive or guidance on how to use AI from the government in schools, but I use it every day. I teach business and economics and use it for planning, summarising and simplifying lengthy and complex articles that I use in class, and I can create interesting resources for the students from this.

In terms of the students using it, the sixth formers use it to guide them and assist them with their work whereas the real challenge is with the younger students who will see it as a fast route of getting their homework done.”

Decline in Girls Studying Tech

A 2024 report by SCARI highlighted the low uptake of computing subjects in schools, particularly among girls, emphasising the digital skills and diversity gaps. The statistics over recent years are concerning because they are declining instead of increasing. In 2023, only 21% of computer science GCSE candidates were girls, a stark contrast to the 43% of ICT GCSE entrants in 2015. Before the 2014 curriculum reform, 69% of female students and 72% of male students selected GCSE computing subjects. By 2020, the figures plummeted to 17% and 39%. These statistics reveal that the curriculum which was last updated over a decade ago, no longer aligns with the rapid pace of technological development.

To address this issue, teachers must also be provided with continuous professional development opportunities to ensure they can deliver up-to-date digital skills training. Additionally, schools should encourage inclusive and diverse tech classrooms, creating environments where all students feel motivated to explore digital creativity. Investment in state-of-the-art technology is essential, as outdated equipment will only hinder progress and disengage students.

Promoting Apprenticeships as a Viable Pathway

Apprenticeships have the potential to serve as a bridge in addressing the digital skills gap in Financial Services. However, societal biases surrounding apprenticeships often lead students to perceive university as the natural trajectory. We need to change this narrative especially as the cost of university is so high leaving graduates with huge debts. Schools should introduce students to apprenticeship opportunities early on, highlighting them as valuable routes into the workforce.

Mr Sean Wilson, Head of Sixth Form Lord Williams School comments, “The apprenticeship scheme needs to be introduced earlier to students from Year 7 so they are aware of it and it ignites their interest helping them to determine what GCSEs they choose. For example, if they want to go into a career in Financial Services, then they need to do business and they can start thinking about their A’ Levels choosing maths and economics as well.

Making students and parents aware of the apprenticeship programme earlier in their school life is paramount. Schools and colleges often hold events around apprenticeship week where universities, local companies from all verticals and apprenticeship training providers come in for an exhibition and talks. These are very valuable but only held once a year which is not enough to make an impact. These types of events need to be incorporated more throughout the school year.

The apprenticeship programme needs to be formulated into a structured programme. Mr Wilson states, “The UCAS system is very structured with dates stamped on what you have to do by when so this drives us to get the applications in. Whereas with apprenticeships there isn’t the same structured system or process in place.

We do a great job on inviting apprenticeship training providers in, and ex-students who are on apprenticeships with some blue-chip companies. Informing current students on how they got there, giving tips to enhance their CV because the apprenticeship scheme is a lot more competitive than UCAS. By formalising the apprenticeship scheme into a programme on a platform with deadline dates and what needs to be done may increase the number of companies to offer apprenticeships and the number of candidates to apply.

Another area to flag is that schools are not measured on the number of students who go for and take apprenticeships. If schools were accountable for this then it would encourage them to work harder on driving them to these opportunities to students.”

Encouraging Industry Collaboration

A critical component of closing the digital skills gap is honing partnerships between schools and the Financial Services industry. Teachers and students need to understand how technology is applied in real-world settings. Businesses, particularly those in the Financial Services sector, should collaborate with schools from the start of secondary education. These partnerships could include talks, workshops, and work experience to give students insight into the Financial Services industry.

Strengthening the Foundations for an AI Future

If the UK is to achieve its ambition of becoming an AI superpower and reap the economic benefits outlined in Starmer’s plan, the groundwork must first be laid. Closing the digital skills gap requires a multi-faceted approach, beginning with investment in education. Modernising the IT curriculum, equipping schools with the latest technology, and encouraging collaboration between schools and the tech industry are all critical steps.

Additionally, greater emphasis must be placed on apprenticeships and their potential to address the skills shortage. By changing outdated perceptions and highlighting their value, apprenticeships can become a cornerstone of the UK’s digital workforce strategy.

A Collaborative Effort

Ultimately, closing the digital skills gap will require collaboration between schools, businesses, and the government. Education reform, cultural shifts, and industry partnerships must work in tandem to ensure that students and teachers are equipped with the skills and knowledge to thrive they require in a digital-first world.

The journey to bridging the digital skills gap is not an easy one, but it is essential. By investing in the next generation, modernising education, and working together, the UK can position itself as a global leader in technology and innovation. Only through a united effort can we ensure that the digital workforce of tomorrow is ready to meet the challenges and opportunities of an AI-driven future in Financial Services.