24 Apr Breaking the Digital Banking Talent Code
Innovative digital developments have had a profound impact on the day-to-day lives of individuals, including retail banking customers. In response, the banking industry has begun to embrace the digital era, where mobile apps and smart ATMs are no longer a luxury but have become a necessity. The wave of digitalization has led many banks to reevaluate their business and talent strategies to attract, engage, and reward a new generation of staff that can successfully transform their existing platforms and provide the digital experience their customers have come to expect.
Although business leaders have identified the unique skill sets needed to develop and support an effective digital platform, the costs associated with sourcing such talent are on the rise due to competition from major tech and online retail firms. A bank’s corporate culture and reliance on secure but outdated technology are deterrents for many potential employees. Attracting and retaining ideal talent profiles depends on the industry’s ability to evolve its highly regulated banking setting into a more contemporary, forward-thinking environment that mimics technology firms. While some progress has been made towards this transition, such as changes in management and reporting relationships, the industry still faces several challenges. In order to emerge as leading players in the digital market, banks must prioritize the following initiatives: identify firm-specific digital value propositions; recruit and retain ideal talent; and, realign compensation methodologies to incentivize innovation.
Business Implications–The Value Proposition
As retail banking customers’ reliance on digital technology increases, banks must identify the full potential of implementing innovative online offerings. Developing core digital capabilities will allow banks to improve the overall user experience as well as to expand their customer base while reducing aggregate branch costs. Delivering a customer experience that is aligned to the changing expectations of how consumers want and expect to interact through digital channels is an essential component in establishing a loyal customer base.
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