The face of the banking industry is changing at an accelerated rate year on year. While this is partly to do with new digital technologies, the world of work, in general, is now unrecognisable to what it once was.
Globally, banking systems are in a more stable place than ever since the recession. However, successes do vary from region to region. In order to survive, banks need to be smart about how they endeavour to future-proof their business
Recognising the Speed of Change
Banks are among some of the most adaptive across the globe, and while the sector begets change, the speed with which systems are changing is only accelerating. They need to accept that there is never a time to take their foot off the pedal. In the past, revolutions in technology came around now and then, but more recently, new technologies are causing seismic shifts every few months.
Banking leaders should be not only receptive to change, but continuously anticipating it. Blockchain caused a considerable shake-up in 2018, but the dust has now settled. How many companies were ready for the rise in cryptocurrencies in recent years? They were viewed at first with cynicism but have only continued to gain momentum.
Take Stock of Your Employees as Their Roles Change
Despite the growth in the economy, the recession shook many businesses to the core, and this has had a knock-on effect on the way many now operate. Companies are still looking to streamline, and middle-management positions are viewed with scepticism. Has your organisation drastically cut down on specific positions to ‘streamline’ aka spend less on salaries?
It is critically important for employers to recognise the extent of a single person’s ability. It is common in high-pressure vocations like the banking sector to find people who are all too willing to say ‘yes’ to anything and everything asked of them by their employer. This is not necessarily a good thing. The quality of work will always decrease when a person becomes stretched to the extent of their ability. Consider more frequent reviews and welcome feedback from your employees who have recently been asked to take on more responsibility.
Not only has the way banks operate changed drastically in the last few years, but the fundamentals around the world of work have also altered, too. We are in a candidate-driven market; there is no getting around it. As employment levels soar, businesses are struggling to fill new openings with skill-appropriate talent and crowded sectors such as banking are suffering the most.
A considerable number of employers are now competing for the same candidates; how can your company be the one they want to work for? This challenge has instigated the philosophy of brand culture and a more transparent and employee-led manifesto for many organisations. Employees now want to know what their company is doing to keep them happy: it is more of a two-way street than ever. As stated in this Forbes article
, offering higher salaries and doing your market research about what other employers are offering is a great way to stay ahead of the game.
Competing With FinTech
Banks have historically only competed with others in the same sector, but the arrival of FinTech has forced banks to rethink their operations. Finance is now a more customer-led sector than it has ever been, and people are hungry for the latest technologies. Physical banks are slowly disappearing in favour of online-only companies.
Digital banks like Monzo, who are opening up 29,000 new accounts a week, are dominating the finance sector. Is your bank equipped to compete with these innovative start-ups in today’s finance world?
Do you need to have a more digital-embracing ethos to attract the talent that will carry your business forward? Many banks and finance companies are now choosing to work with FinTech companies
rather than against them, to utilise their knowledge of the latest cutting-edge technologies.
Focus on Staff Retention
As mentioned earlier, with candidates having the power when it comes to hiring, many companies are now focusing more than ever on staff retention.
Gone are the days of a ‘job for life’.
It is estimated that 30% of the entire workforce now changes their job every 12 months. Some of the main reasons people choose to stay in their current role include opportunities for growth and development, having aligned values with your employer, and being recognised and rewarded.
Does your company provide your employees with the best employee experience? Now is the time to consider whether you are staying relevant in regards to your competitors.
In summary, the financial world has undergone some significant changes, and it is predicted that these changes are only set to continue. It is vital that as a bank, you are responsive to change, and continue to look to the future to prosper.
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