Skills & Training
Needs 2013
Victorian Financial and
Insurance Services Industry
Published by
HESG
Department of Education and
Early Childhood Development
Melbourne February
2014
©State of Victoria (Department of Education
and Early Childhood Development) 2014
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of Victoria (Department of Education and Early
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Authorised by the Department of Education
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2 Treasury Place, East Melbourne, Victoria, 3002.
ISBN 978-0-7594-0752-7
This document is also available on the internet at
http://www.education.vic.gov.au/training/employers/
industry/Pages/marketinfo.aspx
Contents
Executive summary
Introduction
Industry and data scope
Financial and Insurance Services industry defined
Data
Financial and Insurance Services industry trends and issues
Key issues and challenges
Economic contribution
Employer profile
Labour productivity
Financial and Insurance Services industry workforce & skills
Key messages
Employment
Skills composition
Job vacancies
Labour market characteristics
Occupations in demand
Financial and Insurance Services industry
vocational training provision
Key messages
Training activity
Financial and Insurance Services industry enrolments by occupation
Financial and Insurance Services industry training providers
Funding patterns
Regional training activity
Student characteristics
Appendix A: courses by occupation and funding band
3
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25
26
27
29
Introduction
In the context of Victoria’s complex and dynamic economy, a
demand-led approach is the best way to ensure a responsive
and dynamic vocational training system that will help as many
people as possible build skills that lead to better jobs. This is
most evident in the results of the market approach embodied in
the Victorian Training Guarantee, which has achieved positive
outcomes for both students and the economy.
The Refocusing Vocational Training (RVT) in Victoria reforms are
designed to satisfy important criteria for a strong vocational
training market. Through these reforms the Government will be
able to more effectively manage the training market, ensuring that
the vocational training system continues to produce positive
outcomes for students, businesses and Victoria.
Through the RVT, there is a role for government in monitoring,
providing information and responding to the performance of the
vocational training system. A key mechanism by which the
government exercises this role is through the Industry
Participation Model (IPM). The IPM is based on a new
partnership approach between government, industry and
training providers. It increases industry influence within the
training market by supporting more direct relationships
between industry and training providers and by increasing
direct consultation with government.
An aim of the IPM is to seek to improve information sharing
about training provision, options, outcomes, gaps and
associated barriers between industry, training providers and
employers to improve responsiveness. A suite of information
products and tools are been developed, of which this report is
one, to support this aim and an overview of these are provided
in the table following.
This report describes training and economic activity and
developments related to Victoria’s Finance and Insurance Industry,
bringing together a range of qualitative and quantitative insights
from desk research and industry engagement. It highlights both
the challenges the industry faces in attracting the right skills, and
the opportunities businesses, training providers and government
have to address these challenges. Key metrics used in this report
include enrolments by sub-industry, qualification level,
occupation, courses, age group, gender, learners facing barriers,
provider type, reason for study and completions by related
industry sub-sectors. The report also covers apprentices and
trainees, and an analysis of the responsiveness of training delivery
to specific occupational needs. The report produces industry, subindustry and region-specific findings and, wherever possible,
presents comparisons to developments at the State-level.
The purpose of this report is:
1. To provide a basis for understanding the Financial and
Insurance Services sector in relation to employment levels,
skills shortage occupations, current alignment and
responsiveness of the vocational training market to the needs
of the sector and to provide an overview of the challenges and
opportunities in meeting industry vocational skills needs both
now and into the future.
2. To give detailed information around vocational training
enrolments by occupation, location, qualification levels and
other student characteristics, as it relates to the Financial and
Insurance Services sector in order to gauge current trends in
vocational training delivery.
3. To summarise the context of the Financial and Insurance
Services sector in relation to the size and scale of the labour
and training markets as well as the current policy, economic
and social drivers that it is facing.
Introduction
1
Suite of Information Products & Tools
6
Victorian Quarterly Training
Market Reports
On-going series of quarterly reports aimed at
providing a summary of Victorian training
market performance following the
introduction of the student entitlement
system. The report covers three sections –
the first provides an overview of the
performance of the Victorian training market,
the second section examines the participation
of learners facing barriers and the third
examines the alignment of training to industry
skills needs
http://www.education.vic.gov.au/
training/providers/market/Pages/
reports.aspx
Vocational Training:
Victoria’s Regional Report
Annual publication examining training
delivery in each of Victoria’s regions in the
context of the local population, economy
and workforce, building a picture of the
relationship between the local training
system and regional skills needs, training
market performance and responsiveness
http://www.education.vic.gov.au/
training/providers/market/Pages/
regionaltrends.aspx
Vocational Training: Victoria’s
Industry Report
Published annually, this report combines
industry intelligence and economic
analysis with training data to build a more
complete picture of the relationship
between industry skills needs,
employment opportunities and skills
training. Each of the 19 industry training
profiles provide economic context and a
summary of training challenges and
highlights from IPM initiatives
http://www.education.vic.gov.au/
training/employers/industry/Pages/
marketinfo.aspx
Industry Sub-sector summary reports &
Industry Factsheets
46 sub-sector industry summary reports
produced annually highlight industry labour
and training market dynamics with an
overview of current and forecast
employment needs and vocational training
patterns across the sectors and at the
regional level
A series of factsheets are also available for
19 industries
http://www.education.vic.gov.au/
training/employers/industry/Pages/
marketinfo.aspx
Business Toolkit and Case Studies
Toolkit for employers providing information
on how to get government- subsidised
training under the Victorian Training
Guarantee; getting the best training for your
business, with a helpful checklist;
information of Recognition of Prior Learning;
and a range of interesting employer and
training provider case studies
http://www.education.vic.gov.au/
training/employers/workforce/Pages/
marketfacilitation.aspx
IPM Portfolio Industry Reports
Released in line with IPM Portfolio cycles,
these reports describe training and economic
activity and developments related to key
Victoria’s industry sectors. Highlighted are
both the challenges the industry faces in
attracting the right skills, and the
opportunities businesses, training providers
and government have to address these
challenges. A range of key workforce and
training metrics are also provided. There are
two tiers of reports. One are detailed reports,
representing the focus industries for the
Department in 2013, and summary reports
covering other industry sectors
http://www.education.vic.gov.au/
training/employers/industry/Pages/
marketinfo.aspx
Industry Blog
A forum for people interested in industry
skills and training issues in Victoria, the blog
features a range of topics relevant to
stakeholders, information on recent industry
events, groups and forums and new
initiatives focused on enhancing market
performance through facilitation activities
http://skillsblogvic.wordpress.com/
Industry Skills Update - e-Alerts
Regular email update featuring the latest
news about IPM activities; market facilitation
and related government initiatives; reports;
and training performance information
To subscribe contact: Department of
Education & Early Childhood
Development, skills.online@edumail.
vic.gov.au
Web Pages – Industry Training Market
Information
19 webpages with information about the
skills and training market for industry
sectors. For each industry, there’s a training
snapshot, information about skills in
demand, training market intelligence reports
and factsheets along with more detailed
reporting for each industry sub-sector.
Information is updated regularly
http://www.education.vic.gov.au/
training/employers/industry/Pages/
marketinfo.aspx
Rate Your Training
New ratings tool for industry and
employers is a simple-to-use system
where employers can rate the
performance of a training provider in a
particular study area against selected
criteria, and review and compare the
ratings of other employers
http://rateyourtraining.com.au
E-Marketplace (in development)
Website which facilitates connections
between employers and training providers.
Employers can anonymously post their
training requirements and training providers
are able to provide structured response
online. Employers are then able to review the
response with no obligation, create a
shortlist and follow up directly with their
preferred providers
Victorian Skills Gateway
One-stop-shop of Victorian vocational
education and training to help find the best
option for students. Searches can be
performed on occupations, courses, training
providers, video and written case studies. This
website is also viewable via a purpose-built
smartphone interface
http://www.education.vic.gov.au/
victorianskillsgateway/Pages/home.aspx
Skills & Training Needs 2013 – Victorian Financial and Insurance Services industry
Industry and data scope
This section summarises the scope of the Financial and Insurance Services industry and data sources for this report.
Financial and Insurance Services industry defined
The Financial and Insurance Services sector includes organisations engaged in financial transactions involving the creation,
liquidation, or change in ownership of financial assets, and/or in facilitating financial transactions.
The range of activities include:
• raising funds by taking deposits and/or issuing securities and, in the process, incurring liabilities;
• units investing their own funds in a range of financial assets;
• pooling risk by underwriting insurance and annuities;
• separately constituted funds engaged in the provision of retirement incomes; and
• specialised services facilitating or supporting financial intermediation, insurance and employee benefit programs.
Also included in this industry are central banking, monetary control and the regulation of financial activities.
Data
The main source of data on vocational training activities is the training activity database referred to as SV Training System (SVTS).
The report presents findings for the time period from 2008 to 2012, with an in-depth analysis of developments and patterns in the
2012 calendar year. Latest quarterly data is also included to the June 2013 (Q2) period. The 2013 data is based on preliminary data
extracted from SVTS as at August 2013 and subject to revision.
This report includes government subsidised training enrolments and domestic fee for service activities of TAFEs. However, TAFE fee for
service activities below Certificate and those provided by private RTO and Adult Community Education are not included. Data on
completions contain all government subsidised and fee for service enrolments at any course level by all providers.
Industry and data scope
3
Financial and Insurance Services industry
trends and issues
This section focuses on the Financial and Insurance Services industry as a whole. It covers: the key issues and challenges including
economic conditions, new regulations, demographic changes, changing social attitudes, new technology/processes, changing
consumer tastes, environmental policy and the direction of industry restructuring.
Key issues and challenges
• The Financial and Insurance Services industry covers banks, building societies, credit unions, insurers, superannuation
providers, fund managers, accountants and financial planners and advisers.1
• Financial and Insurance Services was the largest single sector in Victoria in 2012, contributing 14% of total output, more than
manufacturing (10%). The sector is also important nationally, contributing more to the Australian economy than our other largest
industries – mining, manufacturing and construction.
• Forecasts show this sector remaining as the largest contributor to output in 2017 in Victoria.
• The overall health of the industry is intimately tied to the state of the economy and financial markets.
• The compulsory superannuation system has made an important contribution to household saving since it began to be phased in from
the mid 1980s. More recently, the increase in household saving likely reflects a combination of increased consumer caution following
the Global Financial Crisis (GFC) and a return to more sustainable rates of consumption growth, after a 30 year period in which
declining saving rates and strong credit growth meant that consumption grew faster than incomes.2
• On a global scale compulsory superannuation in particular has led to a large source of investable funds, which has allowed the
Australian economy to weather the GFC in better shape than other advanced economies.
• Above average productivity growth and improved regulation of the system leading to the implementation of International Financial
Reporting Standards for banks (Basel III) have both impacted the industry in the last 2 years, increasing the value of skills and training
in a dynamic environment.
• The Asian century (as an avenue for further growth), the usage of ICT in financial services and the offshoring of lower skilled jobs all
increase the reliance on training for a more highly skilled sector.
• The introduction of a carbon tax was previously expected to impact this sector via carbon accounting and will be monitored through
2013-14 in line with potential federal government policy changes.
1
Innovation & Business Skills Australia (IBSA) Environmental Scan, 2013
2
Australian Government Budget Paper No.1, Statement 4: Building Resilience Through National Saving, Budget 2012-13
4
Skills & Training Needs 2013 – Victorian Financial and Insurance Services industry
Table 2:1: Key trends in Financial and Insurance Services industry and their potential impacts on skills
Regulatory Settings
Insurance and
Superannuation Funds
Political
Skills impact
Finance
Change drivers
Auxiliary Finance and
Insurance Services
Grouping
Competition Policy
Consumer Protection
Economic
Employment market and job skill requirements
Terms of Trade
=
Overseas competition
=
Performance of economy
Social
Savings Rates
Technological
Technological advancements
NBN rollout
=
Key:
Driver has indirect impact on skills;
=
Driver has low skills impact, and places marginal pressure on skills development;
Driver has high skills impact, and places upward pressure on skills development;
Driver places downward pressure on skills development.
Financial and Insurance Services Trends and Issues
5
Economic contribution
Victoria’s Financial and Insurance Services industry contributed approximately $37 billion to the state economy in 2011-12, around 14
per cent of total output. The industry directly employs approximately 114,200 workers, representing 8 per cent of Victorian employment.
Looking forward, output growth of 18 per cent is anticipated in the five years to 2017, to $43 billion. This is slightly above the anticipated
state growth rate of 14 per cent across all Victorian industries. Victoria has seen a very large expansion in output in the five years to
2012 of 66 per cent. Finance, easily the largest sub-sector has grown 51 per cent between 2007 and 2012, a period that included the
GFC.
A highly skilled workforce leads to increased productivity and economic growth. High quality education and skills training is essential for
Victorians to access the opportunities of a growing and changing economy, and an increasingly sophisticated and information-rich
society.
Figure 2:1: Financial and Insurance Services output ($ million)
50,000
45,000
5,500
40,000
35,000
4,800
30,000
25,000
29,800
20,000
25,300
15,000
10,000
6,900
8,200
2012
2017
0
5 year annual historical
growth rate = 66%
Auxiliary Finance and Insurance Services
5 year forecast
growth rate = 18%
Finance
Insurance and Superannuation Funds
Source: Monash Centre of Policy Studies (CoPS) Employment Forecasts, June 2012
6
Skills & Training Needs 2013 – Victorian Financial and Insurance Services industry
Employer profile
There were around 44,300 businesses in the Victorian Financial and Insurance Services industry in 2012. Compared to the average
across all industries in Victoria, Financial and Insurance Services organisations are more likely to be non-employing enterprises, with
around 35,800 businesses in this category. Most superannuation funds are non-employing establishments and this explains the high
proportion of firms in this category.
Figure 2:2: Share of businesses by employment, Victoria, 2012
90%
81%
60%
50%
61%
40%
35%
30%
20%
18%
10%
4%
1%
0.2% 0.3%
0%
Non employing
1 to 19
Financial and Insurance Services
20 to 199
200+
All industries
Source: Australian Bureau of Statistics (ABS), Count of Australian Businesses, including entries and exits, 2012
Financial and Insurance Services Trends and Issues
7
With regards to turnover, Victoria’s Financial and Insurance Services industry businesses are more likely to be in the low range of
turnover (below $50,000 a year). In 2012, around half (21,500 firms) of all Financial and Insurance Services firms reported turnover
less than $50,000.
Figure 2:3: Share of businesses by turnover size, Victoria, 2012
60%
50%
49%
40%
35%
31%
30%
30%
28%
18%
20%
10%
6%
4%
0%
Zero to less than $50k
$50k to less than $200k
Financial and Insurance Services
$200k to less than $2m
$2m or more
All industries
Source: Australian Bureau of Statistics (ABS), Count of Australian Businesses, including entries and exits, 2012
Financial and Insurance Services establishments are overwhelmingly (over 80 per cent or 5,700 establishments) based in
metropolitan Melbourne, particularly in the CBD and surrounding inner suburbs. The City of Melbourne alone accounts for nearly
20 per cent of the industry’s business establishments in the state.
Financial Services business establishments in regional Victoria are generally concentrated in the major regional centres of
Ballarat, Bendigo, Latrobe Valley and Shepparton.
8
Skills & Training Needs 2013 – Victorian Financial and Insurance Services industry
Figure 2:4: Location of Financial and Insurance Services industry establishments in Metropolitan and Regional Victoria,
2010/11
Source: Department of State Development, Business and Innovation (DSDBI), Financial and Insurance Services Industry. Business location in Victoria: A decade of change,
October 2012 (based on data from WorkSafe Victoria).
Financial and Insurance Services Trends and Issues
9
Labour productivity
Labour productivity is defined as real gross value added per hour worked. Figure 2.5 below shows the average annual
compound rate of growth in labour productivity for the Financial and Insurance Services industry over the period 2000-01
to 2011-12. Nationally the average compound annual growth rate of labour productivity for Financial and Insurance
Services was 2.9 per cent, while the all industries average was 1.4 per cent.
Upskilling the workforce continues to be an important focus for increasing productivity, and producing more with less. A welltrained, job-ready workforce is the life-blood of Victoria’s industry and business and the largest determinant of productivity in
the State’s economy.
Figure 2:5: Labour productivity measure by Gross Value Added (GVA) per hour worked, average annual growth, 2001 to 2012
Financial and
Insurance Services
2.9%
All Industries
1.4%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
Source: Australian Bureau of Statistics (ABS), Australian System of National Accounts, 5204.0
10
Skills & Training Needs 2013 – Victorian Financial and Insurance Services industry
3.0%
3.5%
Financial and Insurance Services industry
workforce & skills
This section focuses on the Financial and Insurance Services industry and sub-sector detail where appropriate. It covers: employment,
industry skill level composition and forecast, advertised vacancies by occupation, labour market characteristics (age, gender and
qualification level), occupations in demand including annual employment needs and projected occupation growth to 2017.
Key messages
• Across the state the Financial and Insurance Services sector employs around 114,000 people of which just over half work in the
banking industry. Employment patterns over the last five years have been turbulent due to ongoing efficiencies created by technology
and the impact of the global financial crisis.
• Modest growth in employment across all subsectors is expected over the coming five years with growth strongest in stock
exchange and share registry services, accounting services and superannuation funds management.
• Low skill jobs as a proportion of all Financial and Insurance Services jobs have been decreasing and are expected to continue to decrease,
while the opposite is true for high skill roles. Many lower skill roles are likely to be offshored. Bank workers, credit and loan officers and
financial and investment advisors and managers are the roles that are immediately at risk.3 The proportion of jobs that are at risk of being
offshored in this sector is twice as high as other service sectors. This highlights the importance of re-skilling in an environment of industry
restructure.
• The Financial and Insurance Services industry has a natural focus on knowledge and analytical skills requiring candidates from
both higher education and those with vocational industry-based skills.
• Victoria has the second highest proportion of Finance and Insurance workers compared to other States and Territories at
approximately 4.3 per cent.4
• Changes in the economic cycle are likely to impact differently in the areas of banking and insurance. Banking (and investment) is
impacted more directly than insurance where there is an economic slowdown. Insurance is likely to be impacted later in the cycle as
the negative effects flow through the system.
• In a climate of dynamic change and restructure Financial Services skills currency and skills development provide the
opportunity for longevity within the sector.
3
Innovation & Business Skills Australia (IBSA) Environmental Scan, 2013
4
Industry workforce development plan, Financial, Administrative and Professional Services Training Council, September 2010
Financial and Insurance Services industry workforce & skills
11
Employment
Approximately 114,000 people are employed in Victoria’s Financial and Insurance Services industry. The industry has seen
employment growth of 10 per cent over the last five years, equating to approximately 10,500 employees. The outlook over the next
five years is for employment to increase by approximately 6 per cent (or 6,500 jobs).
The Finance sub-sector accounts for the largest proportion of industry employment, 51 per cent of the total or approximately 58,200
employees.
While employment grew 10 per cent over the 5 years to 2012, output grew 66 per cent over the same period, led by the Finance subsector which showed the largest proportional growth in output. (see Figure 2.1)
Figure 3.1: Financial and Insurance Services Employment in Victoria
140,000
120,000
27,200
25,600
100,000
80,000
60,000
61,600
58,200
40,000
30,400
31,900
2012
2017
0
5 year annual historical
growth rate = 10%
Auxiliary Finance and Insurance Services
5 year forecast
growth rate = 6%
Finance
Insurance and Superannuation Funds
Source: Monash Centre of Policy Studies Employment Forecasts, June 2012
12
Skills & Training Needs 2013 – Victorian Financial and Insurance Services industry
Skills composition
The Financial and Insurance Services sector has a highly educated workforce and forecasts suggest that high skill jobs as a
proportion of all Financial and Insurance Services positions will increase from 31 per cent to 41 per cent over the period to 2019-20.
At the same time low skill roles as a proportion of all positions are forecast to decrease from 20 per cent to 15 per cent. Forecast
figures are shown as dashed lines on the graph and are subject to ongoing revision.
Figure 3:2: Victorian Financial and Insurance Services industry skill levels
Forecast 2013-20
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
High skill
Low skill
Source: Monash Centre of Policy Studies Employment Forecasts, June 2012
Note: High skill—managers and professionals. Medium skill—technicians and trades workers, community and personal service workers. Low skill—clerical and administrative
workers, sales workers, machinery operators, drivers and labourers.
Financial and Insurance Services industry workforce & skills
13
Job vacancies
Figure 3.3 highlights the number of vacancies posted online in Victoria over the last two years for selected key Financial and Insurance
Services occupations. The number of online job advertisements is trending downwards across majority of the larger Financial and
Insurance Services occupations, consistent with trends seen in the national Internet Vacancy Index.5
Despite this decline, there were still approximately 1,200 newly lodged vacancies in the Financial and Insurance Services occupation
groups in June 2013. The graph below shows that Financial Investment Advisers and Managers, Credit and Loans Officers and Bank
Workers all had over 200 vacancies advertised and are the largest occupation groupings over the series.
Figure 3:3: Number of newly lodged online vacancies in Financial and Insurance Services occupations in Victoria, January 2011
to May 2013
600
500
Financial Brokers
Financial Dealers
400
Financial Investment
Advisers and Managers
Bank Workers
300
Credit and Loan Officers
Insurance, Money Market
and Statistical Clerks
200
Insurance Investigators,
Loss Adjusters and Ris
Insurance Agents
100
0
Source: Department of Education, Employment and Workplace Relations (DEEWR) Internet Vacancy Index (based on a count of online vacancies newly lodged on SEEK, My Career,
CareerOne and Australian JobSearch), major advertising occupations only. Note: caution advised when using monthly occupation data as it is susceptible to fluctuation from month
to month.
5
Department of Education, Employment and Workplace Relations, DEEWR Vacancy Report, February 2013
14
Skills & Training Needs 2013 – Victorian Financial and Insurance Services industry
Labour market characteristics
Employment by age
The Financial and Insurance Services industry workforce employs a lower proportion of 15-24 year olds, compared to the all
industries average and a higher proportion of 35-44 year olds. The other age groups are broadly similar to the all industries
distribution.
Figure 3:4: Employment by age (proportion), 2011-12
Financial and
Insurance
Services
9%
All industries
26%
16%
0%
10%
28%
23%
23%
22%
20%
30%
40%
50%
15-24
25-34
35-44
45-54
15%
21%
60%
17%
70%
80%
90%
100%
55+
Source: Monash Centre of Policy Studies
Employment by gender
The Financial and Insurance Services industry employs a perfectly balanced workforce. In 2012, 50 per cent of the workforce was
female, higher than the all industry average of 46 per cent.
Figure 3:5: Employment by gender (proportion), 2011-12
Financial and
Insurance
Services
50%
All industries
50%
54%
0%
20%
46%
40%
60%
Male
80%
100%
Female
Source: Monash Centre of Policy Studies
Financial and Insurance Services industry workforce & skills
15
Employment by qualification
Employees in the Financial and Insurance Services industry tend to have higher level qualifications, compared to the all industries
average. A large proportion of the Financial and Insurance Services industry workforce (41 per cent) has Higher Education qualifications,
significantly higher than the all industry average of 29 per cent.
Figure 3:6: Employment by qualification level (proportion), 2011-12
Financial and
Insurance
Services
31%
All industries
3%
37%
0%
10%
20%
No post school quals
11%
4%
30%
40%
Certificate I or II
13%
41%
20%
50%
10%
60%
70%
Certificate III or IV
29%
80%
Dip-Av Dip
90%
100%
Higher Ed
Source: Monash Centre of Policy Studies
Occupations in demand
Table 3.1 highlights the occupations at four-digit ANZSCO level (Australian and New Zealand Standard Classification of
Occupations) that align to the Financial and Insurance Services industry. Some of these occupations also align to other
industries however the figures shown are specific to the Financial and Insurance Services industry.
Forecasts presented in the table estimate the employment growth + replacement demand in terms of the average number of jobs
required for each occupation annually up to 2016-17.
Employment growth is the net number of new jobs that are forecast for the occupation (within the industry). Replacement demand is the
number of existing workers that are forecast to leave each occupation (for example, through retirement or moving on) that require
replacement to meet existing employment needs.
Across all occupations in the Financial and Insurance Services industry (including office support occupations such as book- keepers,
receptionists etc.) the average employment + replacement demand figure between 2011-12 and 2016-17 for jobs to support the sector is
around 5,700 per year.
16
Skills & Training Needs 2013 – Victorian Financial and Insurance Services industry
Table 3:1: Estimated annual employment growth + replacement demand figures for occupations
in the Financial and Insurance Services sector across Victoria
Occupation name
Bank Workers
2011-12
employment total
Average annual
employment needs
Overall employment
growth to 2016-17
14,760
670
-390
Finanl Investm Advisers etc
9,770
600
400
Ins, Money Mkt & Stats Clerk
6,940
270
80
Credit & Loans Officers
5,980
260
0
Accountants
4,940
280
310
Oth Hospty Rtail & Srvc Mgrs
4,720
220
470
Financial Brokers
4,700
80
-410
Software & applicn Progmrs
3,860
200
180
Advertising & Sales Managers
3,590
200
380
Financial Dealers
3,160
60
-260
General Clerks
2,850
120
250
Inquiry Clerks
2,560
150
180
Mgment/Organisation Analysts
2,410
160
430
Finance Managers
2,340
170
340
Accounting Clerks
1,960
100
110
Contract/Prog/Project Admin
1,940
110
340
ICT Managers
1,740
100
120
Call/Contact Centre Workers
1,630
90
110
Insurance Agents
1,610
180
0
Personal Assistants
1,540
-20
-240
ICT Business & Sys Analysts
1,530
80
70
Keyboard Operators
1,380
-10
-200
Office Managers
1,310
50
60
Auditors etc
1,190
130
210
VET occupations highlighted in green
Financial and Insurance Services industry workforce & skills
17
Occupation name
2011-12
employment total
Average annual
employment needs
Overall employment
growth to 2016-17
Advertising & Marketing Prof
1,080
60
150
Database & Sys Admintor etc
1,060
50
40
ICT Support Technicians
990
80
110
Receptionists
960
40
-30
Human Resource Managers
950
70
180
ICT Support & Test Engineers
880
50
70
Other Specialist Managers
860
60
130
Bookkeepers
850
20
-40
Chief Executs & Mgr Director
770
40
150
Call Centre etc Mgrs
760
40
110
Debt Collectors
750
40
80
General Managers
720
40
140
Training & Development Profs
690
40
100
Human Resource Profs
680
40
90
Secretaries
670
-10
-100
Insur Survey/Adjustors
670
60
-90
Key messages at the occupational level are that there is currently forecast to be substantial employment growth + replacement demand to
2016-17 in:
• Bank Workers – forecast to have high average annual employment needs (+670 annually), but an overall employment
decrease of around 390 workers between 2011-12 and 2016-17
• Financial Investment Advisers (+600 on average annually), and an estimated overall employment growth in the occupation of around
400 workers between 2011-12 and 2016-17
• Insurance, Money Market & Statistics Clerk (+270 annually), and an estimated overall employment growth in the occupation of around
80 workers between 2011-12 and 2016-17
• Credit and Loans Officers (+260 annually) with overall employment estimated to remain the same size
• Financial Brokers (+80)
• Financial Dealers (+60)
• Insurance Survey / Adjustors (+60)
18
Skills & Training Needs 2013 – Victorian Financial and Insurance Services industry
Financial and Insurance Services industry
vocational training provision
This section focuses on training provided for the Financial and Insurance Services industry. It covers training activity (including a
regional analysis), courses, providers and student characteristics.
Key messages
• There were approximately 2,000 government subsidised enrolments in Financial and Insurance Services courses in Q2 2013. The
majority of enrolments are at the Certificate III-IV level.
• The course with the most enrolments, Diploma of Financial Planning and Certificate III in Financial Planning, accounted for 53 per
cent of all enrolments.
• The Financial and Insurance Services occupation with the most enrolments is Bank Worker. Financial Investment Adviser
enrolments have grown between 2008 and 2012 to become the second largest occupation.
• The majority of training is with private providers, who accounted for over 92 per cent of industry enrolments in 2012,
compared to only 8 per cent in 2008 and this pattern is replicated in Q2 2013.
• 64 per cent of government subsidised enrolments in Financial and Insurance Services courses are in subsidy band C, with the
remainder in Band D6.
6
As part of the Refocusing Vocational Training reform, the government is retaining and strengthening the individual entitlement to a subsidised training place to ensure that businesses and
students continue to have choice over what and where they study and ensuring the cost of such access remains sustainable and in areas of greatest public value. Under the new
arrangements, higher hourly subsidy rates have been attributed to foundation and apprenticeship qualifications, and lower rates to diplomas and above (where there is higher private benefit
and income contingent student loans available) and to lower-level certificates where direct vocational benefit is lower. The subsidy for each course reflects an assessment of its current
“public value”- with courses of greatest public value receiving the highest level of subsidy (Band A), and courses of lowest public value the least (Band E).
Financial and Insurance Services industry vocational training provision
19
Training activity
Enrolments
Enrolments in Financial and Insurance Services courses have increased significantly between 2008 and 2012, up 504 per cent to
6,289 in 2012.
Government subsidised activity accounts for 95 per cent of enrolments in 2012. TAFE fee for service had around 2,000
enrolments in 2008 but fell to current levels in 2009 (around 300 enrolments).
Apprentices and trainees
There were around 540 apprentice or trainee enrolments in courses relating to Financial and Insurance Services in 2012, 8.6 per
cent of all enrolments in this industry. Most of the trainee positions relate to the Bank Worker occupation, which has been consistent
over the period 2008 to 2012.
Financial and Insurance Services has a very low proportion of apprentices and trainees compared to all industries at 25.5
per cent of enrolments.
7
Specialised and in-shortage occupations
Approximately 13 per cent of Financial and Insurance Services industry enrolments are linked to specialised and in-shortage
occupations. Of these, the majority (88 per cent) are linked to the Finance sub sector.
The vast majority (99 per cent) of the specialised and in-shortage enrolments are in qualifications that link to the Finance
Broker occupation.
Qualification level
A majority of Financial and Insurance Services enrolments are at Certificate III-IV level. As at 2012, Certificate III-IV level enrolments
accounted for 61 per cent of enrolments, with Diploma + making up 39 per cent. Only 5 enrolments were recorded in Certificate I-II.
Ninety-four per cent of all enrolments were in the Finance sub sector.
Completed qualifications
In 2012, Financial and Insurance Services sector completions grew by 146 per cent to 4,600 in total.
Completions at Certificate III–IV levels accounted for the largest share (66 per cent), while Diploma and above accounted for 34 per
cent.
Ninety eight per cent of all completions were in the Finance subsector.
7
DEECD used the Australian Workforce and Productivity Agency (formerly Skills Australia) list of specialised occupations. These occupations have a long lead-time for training,
high economic value and a significant match between training and employment
20
Skills & Training Needs 2013 – Victorian Financial and Insurance Services industry
Table 4:1: Key training activity in the Financial and Insurance Services industry, 2008–2012, Q2 2012–Q2 2013
Government subsidised enrolments
Industry Subdivision
2008
Auxiliary Finance and
Insurance Services
Finance
2009
2010
2011
2012
2011–12
Q2 2012
Q2 2013
Q2
2012–13
80
80
60
60
20
-62%
10
10
17%
970
1,280
1,650
6,580
5,940
-10%
5,040
1,820
-64%
30
100
330
228%
210
210
3%
5,260
2,050
-61%
Q2 2012
Q2 2013
-
Insurance and
Superannuation
Funds
-
1,040
1,350
1,730
6,730
6,290
-7%
2008
2009
2010
2011
2012
2011–12
Auxiliary Finance and
Insurance Services
<10
<10
<10
10
10
-29%
<10
<10
-75%
Finance
210
350
380
530
440
-17%
360
230
-36%
-
-
-
-
100
-
50
90
88%
210
350
380
540
540
1%
414
325
-21%
2008
2009
2010
2011
2012
2011–12
Q2 2012
Q2 2013
Q2
2012–13
-
-
-
<10
<10
-
<10
<10
-
280
270
410
1,030
720
-31%
710
100
-85%
-
-
10
10
90
1063%
30
50
86%
280
270
420
1,040
810
-22%
740
160
-79%
All Financial and
Insurance Services
Apprentice or Trainee
Industry Subdivision
Insurance and
Superannuation
Funds
All Financial and
Insurance Services
Q2
2012–13
Specialised or in-shortage
Industry Subdivision
Auxiliary Finance and
Insurance Services
Finance
Insurance and
Superannuation
Funds
All Financial and
Insurance Services
Financial and Insurance Services industry vocational training provision
21
Qualification levels 2012
Industry Subdivision – 2012
Cert. I-II
Cert. IIIIV
-
20
Auxiliary Finance and
Insurance Services
Finance
10
-
Insurance and
Superannuation Funds
All Financial and
Insurance Services
10
Dip.+
<10
Total
Cert. I-II
Cert. IIIIV
Dip.+
Total
20
0%
86%
14%
100%
3,660
2,270
5,940
0%
62%
38%
100%
150
180
330
0%
46%
54%
100%
3,830
2,450
6,290
0%
61%
39%
100%
Completed qualifications
Industry Subdivision
Auxiliary Finance and Insurance Services
Finance
Insurance and Superannuation Funds
All Financial and Insurance Services
22
2008
2009
2010
2011
2012
30
20
20
30
10
-82%
710
1,120
1,440
1,830
4,500
147%
-
10
10
10
80
1560%
730
1,150
1,460
1,860
4,590
146%
Skills & Training Needs 2013 – Victorian Financial and Insurance Services industry
2011-2012
Financial and Insurance Services industry courses
The top 15 courses in Financial and Insurance Services account for 87 per cent of industry enrolments. Certificate IV in Financial Services
attracted most enrolments in 2012, 37 per cent of the total.
Table 4:2: Top 15 Financial and Insurance Services qualifications ranked by 2012 enrolments, government subsidised,
2008-2012, Q2 2012 - Q2 2013
Course
2008
2009
2010
2011
2012
Q2 2012
Q2 2013
Certificate IV in Financial Services
300
380
350
3,970
2,560
2,580
30
Certificate III in Financial Services
270
450
380
510
770
400
530
30
620
350
550
Diploma of Financial Planning
Diploma of Financial Services
(Financial Planning)
30
70
330
590
370
370
30
Diploma of Financial Services
260
230
250
510
360
360
40
Advanced Diploma of Financial Services
(Financial Planning)
10
50
270
280
290
30
Diploma of Financial Services (Finance/
Mortgage Broking Management)
30
150
440
280
270
60
170
40
130
10
170
110
140
130
100
120
40
90
20
50
90
80
80
Advanced Diploma of Financial Planning
10
70
30
100
Diploma of Personal Injury
Management
40
70
60
30
70
20
60
Diploma of Finance/Mortgage Broking
Management
Certificate IV in Banking Services
Certificate IV in Financial Services
(Finance/Mortgage Broking)
<10
20
70
Diploma of Life Insurance
Advanced Diploma of Financial Services
Certificate IV in Finance
and Mortgage Broking
10
10
10
Note: course totals include equivalent superseded courses.
Financial and Insurance Services industry vocational training provision
23
Financial and Insurance Services industry enrolments by
occupation
The top three Financial and Insurance Services related occupations took in 90 per cent of industry enrolments in 2012. Bank
Worker enrolments were the largest occupational grouping and expanded rapidly between 2008 and 2011. Financial Investment
Adviser has also grown rapidly over the period 2008 to 2012 to become the second largest occupation.
Table 4:3: Top 14 Financial and Insurance Services Occupations ranked by 2012 enrolments, government subsidised,
2008-2012, Q2 2012 - Q2 2013
Occupation
2008
2009
2010
2011
2012
Q2 2012
Q2 2013
Bank Worker
660
880
750
4,500
3,500
3,100
720
Financial Investment Adviser
30
80
380
900
1,340
1,040
710
Finance Broker
270
270
410
1,030
800
730
160
Credit or Loans Officer
80
100
130
180
360
170
280
Insurance Agent
70
140
110
80
Insurance Consultant
10
80
60
80
30
30
10
Financial Investment Manager
Insurance Loss Adjuster
20
20
20
20
<10
Insurance Broker
10
10
10
10
<10
30
20
<10
<10
<10
Stockbroking Dealer
20
Please see Appendix A for occupations/associated qualifications with Funding Bands (available for 2011 and 2012)
24
Skills & Training Needs 2013 – Victorian Financial and Insurance Services industry
Financial and Insurance Services industry training providers
The top 15 providers accounted for 97 per cent of all enrolments in 2012. A total of 36 training providers delivered government
subsidised Financial and Insurance Services sector training 2012, however of those only 21 had more than 10 enrolments. The
number of providers delivering government subsidised training has increased from 24 in 2008.
The majority of training is with private providers, who accounted for over 90 per cent of industry enrolments in 2012. This has increased
from 11 per cent since 2008. TAFE’s share of industry enrolments has declined from 85 per cent to 8 per cent over the same period. ACE
Institute provision was minimal from 2010 onwards.
Table 4:4: Financial and Insurance Services provider types ranked by 2012 enrolments, government subsidised,
2008-2012, Q2 2012 - Q2 2013
Provider type
Bank Worker
2008
2009
2010
2011
2012
Q2 2012
Q2 2013
4%
4%
1%
0%
0%
0%
0%
Financial Investment Adviser
11%
13%
49%
90%
92%
92%
88%
Finance Broker
85%
83%
50%
10%
8%
8%
12%
Financial and Insurance Services industry vocational training provision
25
Funding patterns
Courses by funding band8
Of those Financial and Insurance Services courses which recorded government subsidised enrolments in 2012, 52 per cent were in Band
C and 48 per cent were in Band D. No enrolments were recorded in Bands A, B or E.
Table 4:5: Financial and Insurance Services courses by funding subsidy band, 2012
Subsidy band
Number of courses
% total
Band A
0
0%
Band B
0
0%
Band C
16
52%
Band D
15
48%
Band E
0
0%
Enrolments by funding band
In terms of training delivery, 64 per cent of Financial and Insurance Services enrolments were concentrated at subsidy level C, equating
to around 4,000 enrolments. Enrolments in courses in subsidy Band D have remained broadly consistent with around 2,000 enrolments
in 2011 and 2,300 in 2012 (36 per cent).
See Appendix A for a list of courses with associated subsidy bands for 2011 and 2012.
Figure 4:1: Enrolments by subsidy band, government subsidised, 2012
Financial and
Insurance
Services
64%
All industries
14%
0%
25%
25%
20%
Band A
8
36%
40%
Band B
12%
60%
Band C
Band D
24%
80%
100%
Band E
As part of the Refocusing Vocational Training reform, the government is retaining and strengthening the individual entitlement to a subsidised training place to ensure that businesses and
students continue to have choice over what and where they study and ensuring the cost of such access remains sustainable and in areas of greatest public value. Under the new
arrangements, higher hourly subsidy rates have been attributed to foundation and apprenticeship qualifications, and lower rates to diplomas and above (where there is higher private benefit
and income contingent student loans available) and to lower-level certificates where direct vocational benefit is lower. The subsidy for each course reflects an assessment of its current
“public value”- with courses of greatest public value receiving the highest level of subsidy (Band A), and courses of lowest public value the least (Band E).
26
Skills & Training Needs 2013 – Victorian Financial and Insurance Services industry
Regional training activity
In 2012, the largest region in terms of Financial and Insurance Services training delivery was Inner Melbourne, accounting for 90
per cent of industry enrolments. There has been a large relative decrease in Southern Melbourne which had 2% of all enrolments in
2011 and 1% in 2012.
Loddon Mallee is the largest rural region for Financial and Insurance Services training, followed by Barwon South West. These
two regions, however, accounted for just 1 per cent of Financial and Insurance Services enrolments in 2012.
Table 4:6: Victorian regions ranked by 2012 enrolments, government subsidised, 2008¬–2012, Q2 2012–Q2 2013
Region
2008
2009
2010
2011
2012
Q2 2012
Q2 2013
610
580
1,090
5,900
5,490
4,680
1,590
20
10
20
250
310
200
210
Eastern Metropolitan
160
100
130
200
190
130
90
Southern Metropolitan
100
170
180
160
40
30
10
Loddon Mallee
50
130
110
60
40
30
20
Barwon South West
10
20
30
30
30
30
10
Gippsland
40
30
20
20
20
20
40
Grampians
20
10
<10
10
10
<10
<10
10
10
10
10
10
<10
40
40
30
40
10
<10
<10
Melbourne CBD
Northern Metropolitan
Hume
Western Metropolitan
Note: regional enrolment figures sum to slightly more than the overall Victoria-wide figures due to a small number of students undertaking training in campuses in more than one
region
Financial and Insurance Services industry vocational training provision
27
Figure 4:2: Numbers of providers and enrolments in Financial and Insurance Services in Victoria, 2012
28
Skills & Training Needs 2013 – Victorian Financial and Insurance Services industry
Student characteristics
Students from diverse backgrounds engage in vocational training in Financial and Insurance Services fields. Students aged 25 and over
are the largest group, with around 3,600 enrolments in 2012, growing 11 per cent from 2011 levels. There were some declines in
enrolments across the other learner groups between 2011 and 2012. Enrolments by students with Culturally and Linguistically Diverse
Backgrounds (CALD) fell by 8 per cent and enrolments by unemployed students fell 17 per cent.
Table 4:7: Learners Facing Barriers enrolments, government subsidised, 2008–2012, Q2 2012–Q2 2013
Learner Groups
2008
2009
2010
2011
2012
Q2 2012
Q2 2013
Indigenous
<10
20
<10
20
30
20
20
Disability
40
60
40
130
160
110
80
CALD
490
440
450
1,850
1,700
1,390
660
Unemployed
200
170
210
1,600
1,330
1,100
390
Aged 25+
310
660
1,000
3,260
3,620
1,470
310
Financial and Insurance Services industry vocational training provision
29
Within the Financial and Insurance Services sector, 48 per cent of students had a highest prior qualification of Certificate II or Year 12,
compared with 41 per cent across all vocational training students (see Figure 4.3).
The main reasons students gave for enrolling in vocational training related to Financial and Insurance Services were Interest (21 per
cent), with Job Requirement and Job Skills equal on 14 per cent. A high proportion of students did not give a reason for enrolling (37 per
cent).
Figure 4:3: Vocational training enrolments in Financial and Insurance Services by highest prior qualification, government
subsidised, 2012
36%
Year 11 or Below
31%
1%
Certificate I
0%
41%
Year 12 or Certificate II
48%
18%
19%
Certificate III-IV
Advanced Diploma, Diploma or Associate Degree
2%
1%
Bachelor Degree or Higher
1%
1%
All industry
Financial and Insurance Services
Figure 4:4: Vocational training enrolments in Financial and Insurance Services by reason for study,
government subsidised, 2012
Not stated
Interest
Job requirement
Job skills
Get work
Get better job
or promotion
Enable further study
Change careers
Develop my business
Other
Start own business
30
Skills & Training Needs 2013 – Victorian Financial and Insurance Services industry
Appendix A – Courses by occupation
and funding band
Occupation
Course name
Bank Worker
Certificate I in Financial Services
Fundin
g
band
Band D
Certificate II in Financial Services
Band D
<10
Certificate III in Financial Services
Band C
510
770
400
530
Certificate IV in Banking Services
Band C
10
170
110
140
Certificate IV in Financial Services
Band C
3,970
2,560
2,580
30
Diploma of Financial Services (Banking)
Band D
20
3,500
3,100
720
10
10
10
70
20
60
120
40
Total
Credit or Loans Officer
4,500
Q2
2012
10
10
Q2
2013
30
Band C
Certificate IV in Finance and Mortgage Broking
Band C
Certificate IV in Financial Services (Credit
Management)
Band C
50
<10
Certificate IV in Financial Services (Finance/
Mortgage Broking)
Band C
130
100
Diploma of Finance and Mortgage Broking
Management
Band C
Diploma of Finance/Mortgage Broking
Management
Band C
40
170
40
130
180
360
170
280
Advanced Diploma of Financial Services
Band D
90
80
80
Diploma of Financial Services
Band D
510
360
360
40
Diploma of Financial Services (Finance/Mortgage
Broking Management)
Band D
440
280
270
60
Diploma of Life Insurance
Band D
90
20
50
1,030
800
730
160
Total
Financial Investment
Adviser
<10
2012
Certificate IV in Credit Management
Total
Finance Broker
2011
Advanced Diploma of Financial Planning
Band D
10
70
30
100
Advanced Diploma of Financial Services (Financial
Planning)
Band D
270
280
290
30
Diploma of Financial Planning
Band D
30
620
350
550
Diploma of Financial Services (Financial Planning)
Band D
590
370
370
30
Diploma of Banking Services Management
Band D
30
30
10
1,380
1,070
720
Total
900
Appendix A – Courses by occupation and funding band
31
Occupation
Course name
Funding
band
2011
2012
Q2
2012
Q2
2013
Insurance Agent
Certificate III in Personal Injury Management
(Claims Management)
Band C
10
10
20
20
Certificate IV in General Insurance
Band C
30
<10
20
Certificate IV in Personal Injury Management
(Claims Management)
Band C
20
30
30
20
Diploma of Personal Injury Management
Band D
40
70
60
30
70
140
110
80
<10
Total
Insurance Broker
Diploma of Insurance Broking
Band D
<10
<10
<10
Diploma of Personal Injury Management (Workers
Compensation)
Band D
10
10
10
10
10
10
<10
20
10
20
<10
<10
60
50
Total
Insurance Consultant
Advanced Diploma of Superannuation
Band D
Certificate III in Insurance Broking
Band C
Certificate IV in Superannuation
Band C
Diploma of Superannuation
Band D
Total
Insurance Loss
Adjuster
60
<10
10
80
60
80
Certificate III in Financial Services (Workers
Compensation)
Band C
<10
<10
<10
Certificate IV in Financial Services (Workers
Compensation)
Band C
10
10
10
Certificate IV in Premium Compliance
Band C
10
10
10
<10
20
20
20
<10
20
<10
<10
<10
20
<10
<10
<10
Total
Stockbroking Dealer
10
Diploma of Share Trading and Investment
Total
Band D