If there's one thing that everyone agrees on, it is that banks have to change. New regulations have broken the traditional business model that relies on leverage to juice returns. Loose monetary policy has compressed margins. And technology has enabled new players to cherry-pick the most attractive clients.  

But the new Deloitte Talent in Banking Survey shows that the perception of banks as employers is still firmly rooted in the past. For one, banks are still known for financial strength and prestige, despite well-publicised failures and widespread banker-bashing. By analysing the results of a global survey by Universum of 108,000 business students, Deloitte has found three key gaps: innovation, social utility and diversity.

  1. Innovation: Banks need new modes of operating. Business students looking at a banking career are very keen on innovation and on working in a creative and dynamic environment. The problem? They don't expect either of these attributes in banks.
  2. Social utility: In Europe there is a broad consensus that banks need to change their culture and to better serve business in particular and society more generally. Indeed, many banks are already engaged in big culture-change programmes. However, banking-oriented students do not associate ethics, corporate social responsibility or environmental sustainability with banks. They also rate these factors very low on their list of concerns. Unless banks recruit individuals who understand banks' broader role in the economy, they may be condemned to repeat the mistakes of the past.
  3. Missing in action: Banks are working hard on diversity. However, data from the Universum survey suggest that these efforts have yet to convince business students. Two-thirds of banking-oriented students do not associate the industry with gender equality; almost three-quarters do not perceive the industry as supportive of minorities. Women seem to be ruling themselves out of the industry even before application stage: they make up 53% of business students in the survey, but just 48% of those considering a bank among their shortlist of five "ideal" employers.

All of this matters. The key survey finding is that banking has slipped in popularity in the five years since the financial crisis erupted. Software and computing now stands neck-and-neck with banking as the second most popular major industry for business students worldwide. As banks redefine their role in the economy, they need to ensure that they are recruiting on the attributes that they need. 

Visit our website to download The Deloitte Talent in Banking Survey 2013. 

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