Chartered Institute for Securities and Investment chief executive Tracy Vegro and Jersey branch president Rholo Mba talk to Emily Moore about the job market, AI and financial literacy
WHEN did you last have an open, honest conversation about money? Not a moan about how much the weekly grocery shop cost, or how expensive your heating oil was but a real discussion about your pension or when you would be able to retire.
While a lot of people may be “embarrassed” to have such conversations, Tracy Vegro, chief executive of the Chartered Institute for Securities and Investment, wants to encourage people not only to become better informed about their financial options but also to talk about them openly.
Speaking ahead of the Jersey branch’s annual dinner last week, Tracy said that the organisation was focused on three key areas: balancing public interest, being an “exemplary ethical body” and supporting the skills and development of those in the industry.
“Everyone can be an economist for the day and worry about oil prices or whether interest rates are going to rise, but for most citizens, the biggest concern is still around their pensions and when they will be able to retire comfortably,” she said. “However, a lot of people still don’t want to talk about money. I want to encourage that open dialogue, not just among families but also among young people considering their career options, as financial services is still a sector that offers a wide range of interesting jobs.”
Echoing this view, CISI Jersey committee president Rholo Mba, an investment adviser at Barclays, said the organisation was committed to “educating younger generations about those opportunities”, in the hope that this would help to “retain more talent” in the Island.
“As firms are evolving to meet client demands, there are loads of opportunities for young people to enter the sector,” he said. “Artificial intelligence isn’t replacing jobs. In fact, if anything, it’s making us more efficient and enabling individuals to spend more time on what really matters to clients, which is getting to know them and being able to advise them. There are now several instances where you have multiple generations of a family and it is really important to understand their needs and to be able to advise them on areas such as wealth transfer.”
“The job market hasn’t got smaller; it’s just got more competitive,” added CISI client relationship manager Owen Ansell. “More people are now going to university and coming out with the same degrees, which makes it even more important to upskill or do something different to stand out. You have to have that hunger to enter the industry. It’s not just about qualifications but about your people skills. In some ways, having high grades is now less important, thanks to AI, but being able to speak to people is more important than ever.”
Picking up that point, Tracy added: “Human empathy and understanding are critical in financial services, and I think people want more advice now. AI might do some modelling for them and present information in a nice format, but they still need professional advice on their financial decisions.”
In fact, Tracy and Rholo say that the rise in AI and range of information now available online makes professional advice more important than ever.
“People get information from lots of different channels but a lot of it is now driven by social media,” she said. “A lot of this information may not be complete, so while it may be a good starting point, people still need professional advice. On the plus side, however, there has often been a gender divide in financial services and AI has been a leveller in that regard, helping women to increase their knowledge and understanding.”
On the topic of building knowledge, Tracy added that in January, the CISI would be rolling out MoneyLaunch, a financial literacy programme, which has already been piloted across the British Isles.
“The feedback we were getting was that teachers didn’t have the necessary materials to teach financial literacy, so we have developed this programme, which includes lots of interactive elements, to help boost people’s understanding of everything from compound interest to basic financial principles,” she said.
And the CISI’s interest in boosting financial literacy and awareness of careers in the industry does not stop there.
“Supported locally by Declan Falla, an investment manager at LGT Wealth Management, Owen has done some tremendous work building the CISI Young Professionals Network,” said Rholo. “This is vital, as we need to ensure that the CISI evolves and is inclusive for all ages and demographics. At last week’s dinner, we had 22 YPN members from 14 firms, which is a fantastic result and one on which I hope to build during my presidency.”
The number of people in the YPN is also, says Tracy, supporting the overall membership of the Jersey branch, which now stands at just under 1,000.
“Building that membership community is a key part of the CISI,” she said, adding that another vital element was on the qualifications side.
“The CISI is the professional body driving the standards that make sure clients are certain and secure about the advice they are given and making sure that clients and our members understand the ethics within the sector. In a world of finfluencers and online investing, providing that certainty and professionalism is vital, which is why we place so much emphasis on training and qualifications.”
To that end, Tracy adds that the body was “quick” to develop its Certificate in Ethical Artificial Intelligence.
“A lot of people were telling us that they didn’t know where to start on AI and were almost waiting to be told what to do,” she said. “The certificate became one of our fastest-growing products and remains popular both with our members and members of other professional bodies such as the Law Society and ACCA.”
The organisation has also explored the subject further, hosting a CPD session on AI in the Island this summer, delivered by former CISI Jersey branch president Paul Groden.
“This covered compliance, regulation, ethics and AI, with interactive sessions looking at how you would respond to different scenarios,” said Rholo. “Feedback from attendees was that this is a ‘hot’ topic and something where people need intelligence and knowledge.
“AI offers many opportunities and can help drive productivity, but firms need to have the right safeguards in place before implementing any processes, so that they protect themselves and their clients.”
