Conference Agenda
Please note that all times are shown in the time zone of the conference. The current conference time is: 15th Sept 2026, 08:44:00am CEST
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Daily Overview |
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CF 02: Organization and Firms Location: Chapel (Floor 1) Session Chair: Spyridon Lagaras, University of Illinois at Urbana-Champaign | |
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ID: 2106
Technology in the Banking Sector and the Importance of Modern Skills 1: Northwestern Kellogg; 2: UC Berkeley Haas; 3: AI for Good Foundation; 4: DePaul University; 5: NBER This paper examines technology adoption and individual career progressions of technically-skilled employees in the banking sector. We leverage detailed employer-employee matched data to capture (i) the technical skills of each employee, (ii) firm-level technical capital, and (iii) a novel methodology to systematically measure vintages of technical skills, differentiating older technical skills (e.g., Fortran) from newer technical skills (e.g., Python). Banks dramatically increased their technical hiring during the 2010s, with an average bank's technical capital growing by 84%. This increase is ubiquitous across bank size, deposits, and loan portfolio composition. At the individual employee level, we document the importance of modern technical skills. We leverage a unique combination of the same workers' resumes captured in 2015 and 2020 and find that having modern technical skills in 2015 reduces the likelihood of demotions by 2020 by 2.7%. These effects are especially pronounced for older workers. For employees over 40, having modern technical skills reduces demotions by 3.9%. These results highlight the interaction between employee age and skill vintage, with important policy implications for workforce reskilling in the face of advancing new technologies.
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