The Taiwan Banker

Declining birth rates, intense salary competition from the technology sector, accelerating AI adoption, and changing workplace expectations among younger generations are driving a fundamental restructuring of banking talent. According to TABF’s 2026 Study on the Supply and Demand for Critical Human Resources in the Banking Industry, Taiwan’s banks face a dual challenge of both finding and retaining employees, while simultaneously addressing emerging skills gaps in fintech and AI. Recruitment, retention and workforce transformation must all be managed together. A survey of HR executives from 30 domestic banks found that more than 70% were experiencing staff shortages, nearly 10 percentage points higher than last year. 91.7% of these respondents identified an inability to find suitable candidates as the principal cause. Banks have traditionally relied on graduates in business, finance and management to fill entry-level positions. Ministry of Education statistics show that the number of tertiary graduates in business and administration fell from 51,074 in the 2022–23 academic year to 46,362 in 2024–25, however – a decline of 4,712 in two years. The resulting recruitment pressure is particularly severe for smaller banks, which generally have less brand visibility and flexibility in compensation and career-development resources. If staffing shortages reflect a contraction in external supply, high turnover among new recruits exposes weaknesses in banks’ internal retention systems. More than 60% of surveyed institutions reported that for every ten new graduates recruited, more than one left within the first year. Over 40% of banks said these employees left to join competitors. Family considerations were cited by 37.9%, followed by sales pressure at 24.1%. Sales pressure highlights a mismatch between traditional banking practices and younger employees’ career expectations. Aggressive targets and rigid organizational hierarchies can create an expectations gap, increasing the risk of early departure. Banking has not lost its appeal entirely. It continues to benefit from a reputation for stability, professionalism and competitive pay. In a separate survey of 630 university and college students, nearly 70% expressed a positive view of banking, while almost half identified it as a potential career choice. Compensation and job security were the leading attractions. Average annual employee compensation in Taiwan’s listed financial and insurance companies is NT$1.557 million, behind only semiconductors at NT$2.580 million, and computers & peripherals at NT$1.604 million. Against the backdrop of increased investment activity, students interested in banking ranked investment and trading roles as their first choice. Sales roles, which offer opportunities to earn performance-based compensation, ranked second. Nevertheless, this favorable image does not always translate into firm career decisions, because many students have only a limited understanding of what banking work entails. More than 40% described the sector as excessively focused on sales performance, while over 20% considered it inflexible. Among those who remained undecided or did not regard banking as a career objective, more than half cited insufficient knowledge of the work itself. Other concerns included excessive sales pressure, a conservative workplace culture, and burdensome procedures. Banking therefore retains a broadly positive reputation while continuing to face stereotypes of being traditional, inflexible and sales-driven. Technology professionals are even more difficult to recruit. The high salaries offered by rival technology companies strongly attract engineering, data and cybersecurity specialists. Due to regulatory and institutional constraints, banks have less flexibility in compensation, bonuses, recruitment procedures, and implementation of innovative projects, particularly among state-owned institutions. Banks can offer stability, predictable working hours and extensive branch networks. Unless they clearly articulate the professional value and impact of banking careers, however, they will struggle to compete with the tech sector for multidisciplinary talent. The challenge consequently extends beyond recruitment to workforce transformation and organizational repositioning. Current vacancies already reflect these pressures. Sales professionals remain the largest talent gap, with more than 80% of institutions reporting an urgent need. IT and cybersecurity personnel followed at 66.7%, with digital-technology professionals at 54.5%. Even as banks digitalize, wealth management, customer relationship management, corporate banking and financial-product sales remain essential foundations of profitability. Over the next five years, however, demand will shift decisively towards digital technology and cybersecurity. More than 80% of surveyed institutions expect professionals in AI, big-data analytics, IT and cybersecurity to be among the most sought-after occupational groups. Banking capabilities are therefore expanding beyond conventional financial expertise, sales skills and compliance knowledge to encompass data analytics, systems integration, digital marketing, AI applications, cybersecurity and cross-functional collaboration. Demand for fintech talent illustrates the speed of this transformation. More than 80% of banks need employees capable of planning and integrating AI applications, while over 70% need data analytics and forecasting professionals. More than half require talent in digital marketing, systems design, and AI agents. Banks are already applying AI to data collection and analysis; over 40% report that these applications have reduced staffing requirements. More than 30% have introduced AI into customer service, administrative documentation and fraud prevention. While these applications improve efficiency, they also require banks to reconsider how employees are trained. New recruits have traditionally learned banking processes, compliance, risk management, and customer engagement through basic operational tasks. If AI increasingly supports or replaces this work, banks will need to redesign their training pathways so that employees can still develop sound judgement and practical experience. Banks cannot address these interconnected recruitment, perception and skills challenges by focusing on hiring alone. They must rebuild their employer brands and workplace cultures. Internships, practical projects, campus events and experience sharing by alumni can be used to strengthen cooperation with universities. These initiatives can help students understand the range of banking careers before graduation. Internships should go beyond administrative support. Banks should design substantive assignments suited to students’ backgrounds, demonstrating opportunities not only in branch services and sales, but also in digital services, data analytics, green finance, and cross-border banking. Once employees join, the effectiveness of support mechanisms becomes critical to retention. Banks should gradually move away from performance systems dominated by sales revenue and incorporate indicators such as product suitability, service quality, and long-term customer relationships. Training in appropriate sales practices and experience-sharing can improve outcomes for both customers and employees while addressing the industry’s sales-first image. To attract professionals from other disciplines such as technology and data science, employers should also establish more inclusive workplace cultures. Performance measures should reflect the nature of each role and include project outcomes, innovative applications, cross-department collaboration and customer experience, rather than applying the same quantitative sales targets to each position. Clearer career paths for multidisciplinary talent and a more supportive workplace would also strengthen banks’ competitiveness. Technology can help banks communicate a more contemporary employment proposition. Digital situational assessments, AI exercises, and case analyses can be used to evaluate candidates’ problem-solving, learning agility, communication, and adaptability. Beyond just a way for banks to improve their recruitment efficiency, therefore, technology also sends younger candidates the message that the industry is transforming. Banking is at a critical juncture in the talent market. Traditionally, the industry has attracted employees through stable salaries, institutional security, and professional barriers to entry. To remain competitive amid demographic decline and cross-industry competition, banks must now answer three questions. How can students gain an earlier and fuller understanding of banking’s diverse career opportunities? How can banks persuade new employees to remain after joining? And how can they convince technology professionals that banking offers not only stability, but also a meaningful role in financial transformation? By building more inclusive, supportive and employee-friendly workplaces, banks can establish a stronger foundation to close talent gaps and turn human capital into a core source of sustainable competitiveness, moving beyond conventional recruitment to undertake broader cultural change. Sheng-Ben Peng is an Associate Research Fellow at the Financial Research Institute of TABF, and Pei-Shan Tung is an Assistant Research Fellow.