In a speech last night at Oxford University's Saïd business school, Horta-Osório discussed how the reputational impact of the financial crisis is having a negative impact upon the banking industry's ability to recruit young people.
The speech coincided with research published today, which reveals a "potential talent drain" as banking's negative reputation impacts recruitment.
The survey revealed more than one quarter of students (28%) surveyed would be too embarrassed to tell friends if they were going to work in a bank. The survey also found 41% of students distrust banks and financial services providers and 56% trust banks less than they did five years ago.
It also showed 58% of students think that an organisation's reputation will influence their career decision.
"We need to take steps as a sector towards rebuilding our reputation through how we behave and what we do," Horta-Osório said. "In tandem with this we urgently need to address the perception of banking as an attractive career opportunity for young people."
He continued: "The next generation should see banking as an industry that helps to build economic wealth and is playing its part as a useful member of our local communities.
"We want the best and the brightest to see banking as a credible career choice. This is vital for the industry's long-term viability."
Talking about the financial crisis, Horta-Osório said there was "no question" many banks "lost sight" of what was important and their core values became "diluted".
"Banks became complacent, inefficient and crucially they stopped caring about their customers.
"Several banks became complacent about risk. They developed unsustainable business models. They invented ever more complex financial products which their customers didn't understand or need, and they incentivised their employees to sell those products in volume."
He added: "We're starting to witness a self-renewing, re-energised banking industry, which is once again taking its place at the heart of the economy. Helping to develop and sustain a virtuous circle of growth, job creation and wealth generation."
