More than half of new financial services board appointees have tech/AI experience
UK financial services are recruiting more and more board members with technology and artificial intelligence (AI) skillsets, as they express concerns around keeping up with the new challenges arising from emerging AI technologies.
The latest EY European Financial Services Boardroom Monitor, which charts the profile, experience and skillsets of board directors across the MSCI European Financials Index, found 52% of new board members appointed to UK financial services had technology experience and skills – this is a drastic increase from the 36% reported last year.
Breaking down the financial services sector, 44% of new board appointees in wealth and asset management have tech experience, up from 29% year-on-year, while two thirds (67%) of new appointees to UK insurance boards bring this skillset, more than double the prior year’s 30%.
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A total of 94% of UK financial services boards now include at least two directors with tech expertise, and 50% of boards have at least four. Their capabilities range from leading a technology-focused team or holding a senior role delivering technology, or they have experience in fintech, IT systems and cybersecurity.
The monitor also found that while C-suite experience continues to be the most in-demand attribute for financial services board directors in the UK, technology is now the most in-demand skillset followed by corporate finance expertise (48%), accountancy (44%), and sustainability (28%).
Martina Keane, EY UK & Ireland financial services leader, said: “Our new findings clearly demonstrate that technology expertise on UK financial institution boards has shifted from ‘nice to have’ to strategically critical. In the AI era, data and digital infrastructure will increasingly define both competitive advantage and sustainable growth, making directors with working knowledge and hands-on tech experience more important than ever.
“Innovation brings both opportunity and challenge in financial services, so it is critical that firms implement the right capabilities to support ethical and responsible governance that works now and in the long term.”
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Confidence and gender split
Separately, in EY’s AI Confidence Pulse Survey, 52% of UK financial services leaders said they felt their organisation’s current approach to technology-related risks is insufficient in addressing the challenges arising from emerging AI technologies.
Although confidence is higher in UK than in Europe, 58% of UK financial organisations said they are investing heavily in carrying out risk assessments for new AI models, while 52% are investing heavily in employee training to build skills, best practices and risk awareness around emerging AI technologies.
Of the new UK board members with tech experience, the monitor found 62% were women, a considerable uptick from previous years, and 38% men. The overall gender split of board members with technology experience in UK financial services firms now sits at 45% female and 55% male, compared to 43% female and 57% male a year ago, added EY.
Preetham Peddanagari, EY UK financial services technology consulting leader, said: “Technology has moved from a back-office enabler to a boardroom capability. With one in two new UK directors now bringing tech expertise, it’s clear that governance is evolving as fast as the technology itself.
“Just as importantly, a growing number of these tech-skilled appointees are women, which strengthens the range of experience around the table and brings broader perspectives that can help financial services firms meet challenges. The next phase is execution – model risk oversight, secure data foundations and responsible deployment – so innovation scales safely and delivers value for customers and shareholders.”
This article first appeared on Portfolio Adviser