The importance of soft skills in Credit: Beyond the numbers

In the world of finance, particularly in credit roles, it’s easy to assume that technical skills – such as financial modelling, risk assessment, and commercial due diligence – are the most crucial assets.

While technical abilities remain essential, the role of soft skills in credit is gaining increasing recognition. 

Skills like communication, problem-solving, adaptability, and emotional intelligence are becoming indispensable for credit professionals, and it is a growing need that we recognise. Our team place a strong emphasis on these qualities during the recruitment process to ensure a well-rounded approach to building high-performing teams.

Let’s explore why soft skills have become a higher skills priority in credit. 

The growing importance of soft skills in credit roles

Traditionally, success in credit analysis or lending was largely based on mastering the numbers. Financial ratios, balance sheets, and risk assessments were key. However, the field has evolved. While technical proficiency remains important, credit professionals today must also excel in engaging with clients, colleagues, and stakeholders.

Soft skills are now essential for a number of reasons:

• Effective communication: Credit professionals need to be able to explain complex financial information in clear, accessible terms to clients, executives, and colleagues who may not have a financial background. Strong communication skills help to build trust and nurture long-term relationships.
• Problem-solving and decision-making: Credit professionals often deal with incomplete or ambiguous information. Strong problem-solving abilities and sound judgement enable them to make informed decisions under pressure, which is crucial for effective risk management.
• Collaboration and teamwork: Working effectively with others, both internally and externally, is essential. Credit professionals regularly collaborate with other departments, such as risk management, legal, and external auditors. The ability to navigate different personalities and work styles with strong interpersonal skills can be a game-changer in a project’s success.
• Client management and negotiation: Soft skills such as empathy and negotiation are becoming increasingly valuable when dealing with clients, especially in navigating challenging conversations about loan terms or creditworthiness.

The value for clients in well-rounded candidates

Financial institutions and credit teams are increasingly operating in a marketplace where change is constant. In such an environment, the ability to connect, communicate, and collaborate is just as crucial as analysing numbers. Teams composed of well-rounded candidates bring numerous benefits, including:

• Stronger client relationships: Credit professionals with strong communication and interpersonal skills can build more trust and cultivate long-term relationships with clients, leading to better business outcomes.
• Improved risk management: Employees who can think critically and collaborate effectively are more likely to make sound decisions, especially in high-pressure situations.
• Enhanced innovation: Soft skills create a culture of open dialogue and creativity, encouraging team members to propose new ideas and solutions that can provide the business with a competitive edge.

How Dartmouth assesses soft skills for cultural fit

As financial institutions seek candidates who are not only technically skilled but also adaptable and collaborative, we tailor our recruitment approach to ensure candidates excel in both technical and interpersonal areas.

Our candidate assessment process goes beyond simply reviewing CVs or testing technical knowledge. We use a comprehensive evaluation framework that includes:

1. Behavioural interviews: We ask targeted questions to assess how candidates have applied soft skills in real-life situations. For example, we explore how they’ve handled conflicts, collaborated with teams, or made decisions with limited information. These interviews allow us to assess emotional intelligence, resilience, and problem-solving abilities.
2. Cultural fit assessments: A candidate’s ability to thrive in a specific organisational culture is critical for long-term success. We assess their values, work style, and adaptability to ensure alignment with the company’s ethos and team dynamics.
3. Situational judgement tests: These tests present candidates with hypothetical, job-relevant scenarios. Their responses enable us to evaluate their decision-making, teamwork, and conflict-resolution skills, offering further insight into how they balance technical analysis with interpersonal interactions.
4. Client feedback integration: We involve our clients throughout the recruitment process, ensuring that candidates not only meet the technical requirements but also align with the company’s culture and long-term strategic goals.
5. Referencing: We use our extensive network of clients and candidates to collect both soft and formal references. It ensures we have sufficient data points to best inform our clients to make the right hire for their team and their workplace culture. 

By placing a strong emphasis on soft skills, we help our clients build teams that are not only technically proficient but also collaborative, empathetic, and capable of driving long-term success.

While the technical demands of credit roles will always be significant, the increasing importance of soft skills is undeniable. Credit professionals are no longer expected to simply analyse financials; they must also communicate effectively, collaborate seamlessly, and solve problems in real-time.

It is important that we recognise this shift and continue to adapt our recruitment processes to support this, going beyond technical competencies to identify candidates who excel in all areas of their roles.

For businesses seeking not just technical proficiency but also the ability to communicate and collaborate, our Credit team provides the perfect solution: well-rounded professionals who fit seamlessly into any team. Reach out to me directly to discuss your hiring plans at joel.sharpe@dartmouthpartners.com.