Banks are winning the talent war and employees are the winners

It almost seems strange now how driven we were by feisty fintechs taking on legacy banks. These days, the distinctions have blurred.

Digitization, accelerated by the pandemic, has consumed everything from cashless payments to KYC compliance. As a result, the line where the pillar bank stops and the disruptive challenger begins is less clear.

Collect the changes

It’s not just about moving from checks and cash to cashless payments. Corporate remittances and payments have also been disrupted as Silicon Valley increasingly moves into financial services territory.

Peer-to-peer lending platforms and alternative investing are all part of the same tectonic shift. Data intelligence and AI offer new ways to assess banking risk while regtech and cybertech mitigate it.

Out of office

Many employers have seen remote work become the new norm, forcing them to implement new people management platforms as well as global yet local payroll and tax solutions.

The good news for employers is that such intense digitalization has placed the inherently conservative financial services industry at the heart of innovative technologies, a sexy space.

The bad news is that it makes the battle to attract and retain top talent more competitive.

For the employees, everything is fine

Even before the pandemic, the Deloitte report The future of work in financial services found that the ability to attract and retain top talent has already become a “make-or-break” differentiator in financial services.

“To win in this space, the future financial services organization must create a ‘simply compelling’ work experience that is mutually beneficial for all stakeholders,” he said.

This means a “smart approach” that “puts employees at the center, treats them as customers and works to enable their success”. Happy Days.

In particular, “the cold old stereotype of an indifferent bank or brokerage won’t succeed with a younger, more nimble workforce,” he warns.

What do employers need?

The Financial Services Skills Taskforce report from TheCityUK, the industry-led body representing UK-based financial services and related professionals, finds that organizations “that will become top performers, and likely future industry leaders, will be those who combine technical and functional knowledge”. with digital literacy and strong interpersonal skills.”

They will use these skills to exploit new trends that benefit their customers. But to do this, the sector must invest in its people, working with them to develop the new knowledge, skills and behaviors required, he warns.

A continuous learning mindset is now essential. “A change of mindset for employers and individuals will be needed to achieve this, placing learning and skills at the heart of business strategy and planning,” he stresses.

Skill to succeed

Management consultancy McKinsey suggests that redeployment with effective reskilling is 20% more cost effective than hiring and firing because it reduces the number of new hires and the number of layoffs needed. “It also builds an employer’s brand reputation by creating a healthy value proposition for employees, marked by a strong investment in human resources.”

The sector has responded with, for example, legacy giants such as ING fully embracing all the buzzwords that were once the domain of the fintech upstart.

“Technology is just at the heart of what we do,” he says, offering potential candidates carrots such as “cool projects, the latest tech, IT festivals and hangouts” as well as agile working. in small collaborative teams.

Both sides deploy the same weapons

If you are considering a career change, some of the employers winning the battle for talent in innovative ways today include Oaknorth Bank. It offers an “entrepreneurial spirit, driven by the unmet financial needs of millions of people and provided by data-driven tools”.

Unlike the hierarchical banks of yesteryear, it prides itself on a flat organizational structure “where every employee feels empowered to speak up, share ideas, and challenge the norm.”

But borrowing works both ways.

Robinhood, a pioneer in commission-free transactions via a mobile app, deploys HR best practices used by traditional financial services like Employee Resource Groups (ERGs) that provide staff support, resulting in Rainbowhood, Parenthood and Sisterhood, to to name a few.

When launched in 2010, Metro Bank was the first major new bank to launch in the UK in over 100 years. Today, it offers a mix of remote and office work, the opportunity to do paid volunteer work, and a comprehensive library of online courses to support development.

Digital challenger Starling Bank says it is on a mission to “radically reshape the banking industry” – starting with its team.

“You will be encouraged to pitch your ideas, whether big or bold,” the company says.

She describes herself as a Fintech with a banking license. “We are a group of techies, artists, marketers, customer advocates and supporters, UX specialists, ops, and people who deal with risk, compliance, and finance.”

What it doesn’t say is that today this is increasingly true for all parts of the financial services industry.

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