Future-Proofing Banking: How to adapt to Technological Evolution using Talent

Technology is redefining banking as we know it today. We’ve spoken in depth about digital banking and how transformation has impacted this, but how can financial leaders also follow suit? Constant emerging trends and technologies must be front of mind for leaders, and staying ahead is the key to success. Talent plays a considerable part in the success of any organisation, but particularly within Financial Services which has changed drastically over the past decade.

Talent and transformation: a synergy that is needed

An organisation is nothing without its people, and leaders within the financial services industry are reliant on the crème de la crème of talent to ensure that operations run smoothly. 

When looking at talent and transformation, it’s crucial that the right individuals are in post to lead the exponential changes that will occur within the organisation. 

It’s a synergy that is needed more now than ever before, particularly if we look at banking and how much that has evolved over the past 5 years. Organisations struggle with transformation for a number of reasons, but employee resistance is one of the biggest contributors. Hiring the right talent who is open to change (and moves with change) can mitigate this. 

“Adding to the complexity of the issue is an ageing workforce. As baby boomers retire, they take information and experience with them, leaving a knowledge gap behind. A number of people also left the financial services industry during the economic downturn. 

The rebounding of the industry has put mid-level managers in high demand — so much so that inexperienced people have been promoted or banks have had to hire people with no financial services experience whatsoever. Both solutions have resulted in higher training costs. To alleviate that, many banks are setting up alumni groups or contracting long-term veterans to help train and educate young middle managers. “ - Beamery

The skills gap

Adapting to technological evolution requires fresh talent, but it also requires for skills gaps to be filled. The aforementioned by Beamery highlights a solution distinct to the Banking industry - there is a loss of knowledge from senior individuals retiring, creating a huge skills gap from senior to mid to junior talent. 

FinTechs and other Tech organisations are snapping up young and hungry talent, meaning that the Banking industry (as well as other industries within Financial Services) is struggling to attract and retain talent. Skills gaps contribute to bigger issues regarding transformation, halting necessary change needed because there’s a shortage in skills or headcount (or both). 

“Across the board, the biggest challenge cited by the talent leaders we surveyed was the skills gap in their industry. For financial services companies, addressing this requires long-term planning.

The financial services sector is still an attractive career prospect, but its allure has taken a dip in recent years, especially among young people. The industry needs to address this as a whole, but individual companies can also have an impact by reaching out to schools – not just universities – to interest people in the sector early on.” - European CEO

What is the solution?

Upskill and train

The aforementioned skills gap will cause problems if not addressed, so future-proofing your organisation requires continuous upskilling of employees. Whether this is through internal training programmes or using external consultants and training providers, ensuring that employees have access to relevant training resources is crucial. 

Particularly when transformation is concerned, you want to guarantee that employees are equipped with the training and development that accompanies each transformation.

“Investing in digital transformation and skills training pays off. About 66% of employers expect to get ROI for upskilling and reskilling within one year. And 93% of CEOs who introduce upskilling programs see increased productivity, improvement in talent acquisition and retention and a more resilient workforce.” - PwC

Hire high-quality talent

This may sound obvious, but a solution for future-proofing within the Banking industry is investing in the best talent to drive your organisation forward. You should also look to hire “outside of the box” - for example not just hiring those from a corporate finance background. 

Create a modern working environment

“Even ‘traditional’ industries like financial services need to shake up their employment model. The goal should be finding the best person for the job – whether they do it remotely, flexibly, part-time or as part of a job share.” - European CEO

Long gone are stuffy suits and corporate jargon (or, so we’d like to think). There’s an argument that there’s a place for the “old school” financial services stereotype, but with FinTech snapping up high-quality talent, a modern working environment that caters to attracting the “new gen” talent is paramount. 

This doesn’t necessarily have to be beanbags and ping-pong tables, either. Keeping up with the latest benefits, working from home arrangements and adopting new technology and methodologies can enable you to have a competitive advantage and retain excellent talent.