The Taiwan Banker

In the past, finance was widely regarded as a lucrative and stable career choice, but today, the younger generations are increasingly disinclined toward the industry. Flexible post-retirement reemployment programs and job redesign initiatives that foster collaboration between younger and older practitioners may offer a path forward. TABF has long focused on human resource issues in Taiwan’s financial sector. In the TABF 2025 Human Resources Survey of Financial Institutions, over 60% of respondents reported insufficient manpower, and expressed a pessimistic outlook for the coming year. Conducted through questionnaires with seven financial holding companies and 31 banks, expert roundtables, and in-depth interviews, its 2025 annual HR survey combined quantitative and qualitative research to explore the key recruitment challenges currently facing the industry. Over 80% of surveyed institutions now use artificial intelligence fosr customer service, fraud prevention, anti–money laundering, marketing, virtual assistants, compliance, and risk control. Automation has helped ease labor burdens, but 60% of respondents still reported staff shortages. Although this marks an improvement from 2024’s 80%, banks have grown more cautious about the labor outlook for the coming year. Figure 1: Optimism about the labor market in the coming year Source: TABF 2025 Human Resources Survey of Financial Institutions Figure 2: Employee Age Distribution Source: TABF 2025 Human Resources Survey of Financial Institutions The percentage of respondents optimistic about the labor market fell from 34.3% to 31.6%, while the pessimistic share rose from 28.6% to 34.2%. The survey also found that employees aged 40-59 now make up the largest share of the workforce, both among general staff and management. In many cases, the traditional pyramid-shaped organization where employee numbers decline with age has now been replaced by a spindle-shaped structure – signaling not only a labor shortage, but also potential leadership gaps in the years ahead. The primary reason for this shortage is the overall slowdown in population growth. Over 80% of the banks reporting staff shortages said they struggle to recruit new employees. The number of business and management graduates fell from 54,000 in 2021 to 48,000 in 2023, suggesting a shrinking talent pool. Large banks and financial holding companies attributed their hiring challenges to jobs that fail to appeal to younger workers, while smaller banks cited weaker brand and industry image as key obstacles. The results reflect a shift in social values: the “golden rice bowl” of finance is no longer as coveted as it once was. As younger generations lose interest in finance and senior employees retire early, utilization of mid- to late-career workers has become critical. Many financial institutions have already seen increasing waves of early retirements, with employees leaving before 65 outnumbering those retiring at the mandatory age. More than 60% of surveyed institutions are considering or have already implemented response measures. Veteran employees bring deep institutional knowledge, extensive client networks, and strong professional judgment, all of which are valuable assets for business continuity and performance. With life expectancy rising, many retirees are seeking meaningful engagement after retirement. Flexible reemployment programs can offer mutual benefit: retirees might return as consultants, support staff, or in redesigned roles such as branch greeters or fraud prevention outreach personnel – positions which all rely on interpersonal experience and communication skills. Beyond finance, senior professionals’ expertise and connections can also benefit other sectors. IT platforms and consulting services could help retired employees apply their skills in advisory roles for corporations or nonprofits. Such arrangements not only allow retirees to continue contributing but also enable financial institutions to fulfill social responsibility goals, creating shared value across all parties. Reframing finance as a purpose-driven industry Although average pay levels in finance remain second only to the tech sector, shifting social perceptions have eroded its reputation as a dream job, complicating both recruitment and management. In response to these trends, besides continued digitalization of workflows to reduce labor demand, financial institutions should also relax rigid hierarchies and management structures. At an industry level, strengthening finance’s public image as a sector that drives social progress through capital intermediation could restore a sense of mission to financial careers. By redefining purpose and breaking stereotypes, the industry can re-engage younger talent and rebuild its appeal in the job market. Building a cross-generational workforce Younger employees excel in digital environments and adapt quickly, but may lack interpersonal skills essential for client-facing roles. Senior employees, while less digitally fluent, bring valuable experience and networks. By fostering collaboration between generations, encouraging mutual respect and learning, the industry can achieve cross-generational synergy where the combined output truly exceeds the sum of its parts.