Finance and Insurance is made up of banks, finance brokers and advisors, investors, mortgage brokers, credit cards, credit unions, health, life and general insurance companies, building societies, superannuation funds and pawnbrokers.
The sector includes 193,489 businesses and employs 420,700 people.
The sector covers: Investment operations, Financial brokers, Consultants and Clearing houses, Stock brokers and Futures brokers, Credit cards, Claims assessors, Insurance brokers, Merchant banks, Credit Unions, General insurance, Banks, Life insurance, Building societies, Pawnbrokers, Superannuation funds and Health insurance.
Finance and Insurance employs 420,700 people. New South Wales has the largest share of the workforce and the jobs are concentrated in capital cities.
Jobs in the Finance and Insurance sector are under threat from Artificial Intelligence and Blockchain.
AI and Blockchain provide more ways to increase efficiency in an automated banking and finance operational environment. This is good for organisations but not so good for the workforce in the sector.
The automation of banking and insurance with the shift from high street banking to online banking, from counter to ATM, from cash to card, has changed the relationship with customers. Plus malpractice in the banking and insurance industry has damaged respect and trust for financial institutions in society.
AI is a threat to financial services of all kinds, offering better advisory options than financial planners, mortgage and insurance brokers. AI powered chatbots can deliver tailored financial recommendations based on the results of data, reports and investment statistics from across the planet.
And Cryptocurrency is another threat to traditional fiat currency and the banking industry, offering a new mechanism for exchange.
Australian Apprenticeships Pathways
The most likely scenario, however, is a combination of both the optimistic and pessimistic views. An economy that prizes highly-skilled, well-trained, and adaptable employees who work alongside very smart machines. And a large segment of low-skilled workers whose skills are made redundant at an alarming rate.
While we can appeal to the better nature of organizations to nurture and prepare their staff for an inevitable technological transition, Millennials should heed the warning signs, take initiative, and equip themselves with the skills needed to survive a potentially tumultuous economic evolution.