Generation Z workers are increasingly leaving their banking jobs in search of entrepreneurial opportunities or more flexible work, according to a new survey of senior bosses.
Most financial firms are taking action in a bid to retain their younger staff.
Nearly half of financial services leaders report an increase in the number of Gen Z employees leaving their organization over the past year, according to a KPMG survey.
This rises to 54% of those within the banking sector who noticed an increase.
Generation Z, which generally refers to people born between 1997 and 2012, often seeks more business-style work in their decision to leave financial jobs, according to the survey.
The main reason cited by finance chiefs was a preference for working in start-ups, at 42%.
While 35% said they were leaving because they wanted to be self-employed or pursue independent careers.
About 34% said Gen Z workers chose to leave because they want more flexibility or remote work, while the same proportion cited cost-of-living concerns as the driving factor.
The survey, of about 150 people at management level or above at financial services firms, found that around a quarter of younger employees are estimated to have left financial firms in the past year.
Nearly all business leaders surveyed, 96%, said they were taking active steps to try to improve Gen Z retention at their company.
More than half said they were working to introduce flexible working policies, such as fixed-term contracts or flexible hours, in a bid to attract younger workers.
Others said they were reviewing their office attendance policies as a result.
Karim Haji, head of UK and global financial services at KPMG, said: “Generation Z employees are clearly indicating a desire for more autonomy, variety and business experiences.
“The challenge for financial services companies now is how to create an enterprise experience for a social media generation in a heavily regulated environment.
“Office presenteeism gets a lot of attention, but the reality is that most financial services firms have made progress in offering flexibility that goes well beyond remote working, whether that be staggered hours, flexible contracts or better wellbeing support.
“That's to be applauded, but in addition, companies must keep pace with the changing values and expectations of young talent.”
