The banking and financial services sector is the backbone of South Africa’s economy, it drives investment, facilitates trade, supports households, and underpins every other sector of industry. With companies like Standard Bank, Nedbank, FNB, Capitec, and Absa leading the charge, the sector is highly competitive, technologically advanced, and globally connected. Yet it is also under pressure: retrenchments have been rising as banks automate services and shift to digital platforms, while unemployment among finance graduates remains high.

BANKSETA, the sector education and training authority responsible for banking and microfinance, has a clear mandate: to develop a skilled, inclusive workforce that responds to the needs of both employers and job seekers. Funded through the Skills Development Levy, it supports learnerships, bursaries, and workplace-based training that align with the National Skills Development Plan 2030. BANKSETA’s mission is not only to ensure the availability of financial skills but also to democratise access to careers in banking, making sure that youth, women, and disadvantaged groups can benefit from opportunities.

Despite its world-class reputation, the financial sector employs fewer people than retail or agriculture. Stats SA data shows that the sector provides just over 500,000 formal jobs, concentrated in urban centres. The automation of back-office functions, the rise of digital banking apps, and the closure of physical branches have led to retrenchments in traditional banking roles. At the same time, new roles are emerging in fintech, data science, cybersecurity, compliance, and financial technology innovation. Banks like Capitec have demonstrated how digital-first strategies can expand financial inclusion, creating opportunities in both high-tech and customer-support areas.

The mismatch lies in the education pipeline. Thousands of graduates in commerce, business, and finance struggle to find jobs, not because there are no opportunities, but because their skills are often mismatched to the needs of a rapidly digitising sector. Employers report shortages in fields like actuarial science, risk management, data analytics, and artificial intelligence. This is compounded by the fact that many SMEs in the financial services space such as microfinance institutions and fintech startups struggle to attract skilled employees due to resource constraints.

Women and youth remain underrepresented in senior banking and financial services positions, despite making up a significant portion of entry-level roles. Addressing this inequality requires deliberate mentoring, bursary support, and professional advancement programmes.

Looking forward, the banking sector must become an enabler of inclusive economic growth. By aligning skills development with emerging fields like fintech and green finance, South Africa can create pathways for unemployed graduates to enter meaningful careers. BANKSETA has a pivotal role to play in bridging academia, industry, and policy, ensuring that the workforce of tomorrow is not only technologically skilled but also socially responsive.

The banking sector is a catalyst for development. To secure its future, the sector must invest in people as much as in technology. A socially inclusive financial sector that empowers youth, women, and SMEs will be key to building resilience in South Africa’s economy.

Questions for the Future

How can finance graduates be reskilled to meet the demands of fintech, data science, and digital banking?

What policies can ensure retrenched banking staff are redeployed into emerging fields such as green finance, compliance, and fintech startups?

How can the financial sector broaden access for SMEs and township entrepreneurs, ensuring that job creation extends beyond urban hubs?