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Banking Pov 2019 - Peoplematters
Banking Pov 2019 - Peoplematters
CHALLENGES IN THE
BANKING SECTOR
A People Matters and Oracle Point of View
FOREWORD
Shaakun Khanna, Head of HCM Applications, Asia Pacific
With a range of new technologies including Artificial Intelligence, Machine Learning, Fintech and
Cryptocurrencies transforming the world of work, there are a number of new and emerging talent challenges
that business leaders need to account for.
In this exclusive People Matters – Oracle point of view on “Navigating the challenges of the Banking Sector”, we
study the change in the sector, the underlying drivers and the implications on everyday talent functions that
need re-thinking – right from talent acquisition to performance management.
In addition to the insights, there are three expert views from leading banks in the region on how they are getting
their workforce future ready, how they are planning to attract and retain the right mix of talent and how to deal
with the shortage of digital talent in the financial services sector. We hope this report equips you to reflect on
your own challenges and to ideate on the possible solutions.
EXPERT YES Bank
On attracting and retaining
Individualized experiences by intelligent customer-targeting based on their individual lifestyles, values, aspirations, etc., data &
advanced analytics, Artificial Intelligence and digital communication platforms such as APIs and chatbots are enabling a high
degree of personalization for segments such as millennials, HNIs, SMEs etc. allowing banks to optimize costs and add more
value.
Open banking networks will be made possible through innovative collaboration networks and platforms, allowing customers
control over their own data. Intuitive APIs allow customers access to extended services, such as third party payment apps or
wallet apps. Banks will have to collaborate with bigtech and fintech firms.
Internet and mobile banking apps and facilities such as identity enabled payment system and unstructured supplementary
service data, not only provide convenience, but give more power to the underbanked society. Cloud computing platforms,
mobile wallets, point of sales instruments, micro-ATMs, internet banking, mobile apps are delivering financial choices in the
hands of such customers.
Cyber security and agile risk management: Technology has a flip side, growing threats of hacking, AI-based attacks etc., pose
a serious threat to the financial world. Banks must therefore invest in security tools and risk management solutions.
TALENT PERSPECTIVES:
TRENDS AND CHANGES
EXPECTED
New capabilities, strategy and mindset
will be in demand in the future. The need
for data scientists, automation experts,
cyber security specialists, governance
personnel is on the rise.
Financial institutions will seek talent that is not just well versed with the
knowledge of banking but also possess industry insights, an
understanding of consumer expectations, and an awareness of the
latest technologies. The banking workforce will also see a huge change
with a demographic shift as the Gen Z and Millennials join the workforce.
Apart from technology skills, banks will also focus on bridging the
soft-skills gap by providing access to continuous learning tools. This calls
for a mindset shift from the traditional way of working to a new culture
that appreciates and embraces digital.
RETHINKING
TALENT STRATEGIES
Banking leaders must re-align the talent management strategy, to stay ahead of the digital curve:
These are some key talent realities that the banking sector is waking up to. A plethora of allied HR processes
are aligning with the new talent paradigm to make digital-commitment an ongoing leadership priority.
BANKING IN THE
Region- wise distribution - India
Semi-Urban
34.2%
Global bank branches (47443)
25
Colombia 94074 24.13
19.2
20
10.6
Russia 38758 10 8.56
6.99
5
50000 100000 150000
Source: RBI
97% 43%
of payment transactions of all bank working
for public sector banks hours can be
are paper based as automated with
compared to 60% for India current About
private sector banks. to become the third technologies 50
largest domestic roles drive
banking sector by
2050 after China 80%
and the US. of business value
in Banking
The advent of disruptive technologies, coupled with widening skill gap is the primary factor influencing their
ever-rising consumer expectations, the growth of the workforce strategies, but only 3% of them plan to significantly
fintech sector and a tightening regulatory landscape, increase their investment in reskilling over the next three
means that the recruitment and retention of quality digital years.
talent has emerged as a key strategic challenge in the
financial services industry. Furthermore, as financial institutions invest in
state-of-the-art technology to improve operational
This shortage of digital talent arises, firstly, from a effectiveness, they compete for digital talent with the
fragmented digital approach that does not prioritize digital new-age tech giants that may be perceived as more
transformation as an organization-wide strategy. This is technologically savvy by the millennial population, thereby
further compounded by the lack of a long-term vision, necessitating a focused approach towards cultivating digital
wherein digital initiatives are implemented on a talent from within.
project-to-project basis to fulfill near-term milestones, and
not integrated with a comprehensive roadmap for the Hence, the emergence of a younger workforce with new
future. Lastly, a lack of investment in upskilling employees skillsets in the digital age means that even banks must not
diminishes an organization’s competitive edge over the only customize their recruitment and retention strategies,
years. but also invest in enhancing their brand image to be
perceived as an employer of choice.
According to a recent study by Accenture, Realizing the Full
Value of AI, 54% of banking executives state that the
The topmost priority is to provide employees with
experiences that can enable a collaborative and result
oriented philosophy. Leaders must Inspire and become
BANKS MUST EMBRACE challengers and create similar environment in their teams.
Data needs to be leveraged to drive insights for objective
RESILIENT PEOPLE PRACTICES decision making.
AND DYNAMIC PLATFORMS Industry focus areas for the future should include:
1. https://www.financialexpress.com/industry/banking-finance/digital-push-banks-woo-it-talent-with-fat-paychecks/1555113/
2. https://talentorganizationblog.accenture.com/financialservices/talent-management-crossroads-for-banks-top-three-hr-
trends-to-watch