Future of Work and Workforce in banking
When we think of traditional banking, we realize that the banking industry has undergone many changes. What comes to our mind about conventional banks is the structure of a headquarter, regional headquarters, and the branches across the geography it operates. A customer would visit a bank’s physical branch and speak to someone to buy a financial product or get financial advice.
Over time, technology played a crucial role in changing how banks operate. Technologies like Big Data, Cloud, and Artificial Intelligence brought new opportunities. Still, at the same time, they also proved to be potential threats to the existing big players in the banking industry with the emergence of many FinTech start-ups.
When the pandemic hit the global economy, the banks had already started upskilling their workforce to meet the emerging needs of modern consumers. The pandemic acted as a catalyst for all these changes. Despite all the challenges, the banks were able to adapt and learn lessons for the future ahead.
The banking sector is changing as a result of numerous new realities. Technology is prevalent today. It makes it possible for entirely new working methods and emphasizes the need for tech-savvy staff across the board, not just IT professionals. There is data everywhere. To extract customer insights and maintain their competitiveness, all firms must leverage the power of big data and analytics. To keep up with the competition, technologies like AI have put a renewed emphasis on efficiency and the automation of manual processes. There is also a generational shift welcoming more diversity who expects inclusivity, open communication, and employee empowerment. The character of careers has changed. Employees must continuously learn new skills and adapt to new technological disruptions.
Since change is the only constant, the banking business is no exception. Rapid change is taking place. Talent recruitment and retention are essential areas of concern. Employers must consider their workers as customers for the work experience. Employers have a hard time finding the talent they want, and employees now expect a holistic experience. Banks must provide much more than just money in order to compete fairly for the talent pool. Employees seek a variety of opportunities and a boost to their individual brands. A new potential and a key distinction in the market is the customer experience, paired with an exceptional employee experience.
However, the banks must upskill their workforce provocatively to meet the customer’s ever-changing needs. The skills must be mixed with all technical and soft skills, based on a bank’s strategy. For example, the branch employees must know all the essential general and technical skills required for the job.
Apart from the upskilling process, banks also have to go through the reskilling of the existing employees. The industry trends indeed show that many jobs could be replaced with the help of emerging technologies. It must be noted that these technologies will always be complementary to what the workforce contributes. What will change is the way the workforce has to leverage these technologies. So, the employees must be ready to adapt to new trends.
To achieve the upskilling and reskilling of the workforce, banks must ensure that they build a learning culture within an organization with an infrastructure that supports it. It requires commitment and consistency from the firm. Senior leadership needs to develop talents within the organization, nurturing them and giving them enough opportunities to grow. The employees must build the digital infrastructure that supports it internally to help them learn by applying it to their work.
A bank must maximize its employees’ potential. The next phase of the change process must include their people. Banks must concentrate on new methods of operation to achieve this. The likelihood of a sizable section of a bank’s personnel working in hybrid or virtual models in the future is high. Converting in-person procedures to video or conference calls is insufficient. Now more than ever, adopting these techniques for the virtual world and new working methods that enable forging virtual relationships, leading remote teams successfully, and cross-functional collaboration will be crucial.
One of our leaders in TCS once said, ‘ We don’t need a winning mindset. We need a championship mindset.’ Similarly, banks must recognize that there is no finish line and maintain organizational performance to maintain and build on the gains earned thus far. In order to accomplish that, banks must be aware of what is required, invest in the skills and leadership necessary, and leverage strategic alliances to create even more exceptional value. Most customers would agree that banking has transitioned to digital. That gives the impression that that’s all the bank has to do as if the finish line. However, the reality is that it is still in the process of becoming digital, and there will always be methods to boost efficiency. Banks should monitor the market and determine where to move next as industry disruption continues.
A changing workforce must be retained and engaged if organizational performance is to be sustained. The motivation of today’s workforce is mainly driven by interesting work and the challenging nature of the work. Because of the expanding role of technology, banks frequently compete outside the industry for the expertise they require. As a result, banks should concentrate on guiding the workforce as their career landscape change. Additionally, banks must seek out strategic partnerships to close any gaps. It will improve their capacity to adjust to the requirements of new skills and resources. These alliances can assist an them in integrating services that it cannot swiftly develop on its own to innovate and transform.
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