Article 08: Banking Industry Trends

Digital Transformation

Digital transformation is the process of using technology to make banking faster, easier, and more convenient for customers (Ovington, 2022).

In the past, conventional banks were mostly brick-and-mortar corporations where customers had to come in person to conduct transactions. Today, modernized sophisticated banks are increasingly offering online and mobile banking services that allow customers to manage their finances from anywhere in the world.

This take to digital banking is being driven by a number of characteristics, including:

The increasing adoption of mobile devices:

More and more people are using smartphones and tablets to access the internet (even kiosks sometimes), and this trend is also affecting the banking industry. Many banks now offer mobile apps that allow customers to check their balances, transfer money, and pay bills.

The rise of e-commerce:

E-commerce is growing rapidly, and this is leading to an increase in online payments. Banks are developing new technologies to make online payments faster and more secure.

https://www.techfunnel.com/fintech/e-commerce-applications-in-banking/(Techfunnel, 2019)

The growing demand for personalized financial services:

Customers are increasingly demanding personalized/customized financial services that are tailored to their individual needs. Banks are using data and analytics to develop new products and services that meet these needs.

The digital transformation of the banking industry is having a significant impact on the way that banks recruit and train their employees. Banks are increasingly looking for eligible candidates with strong digital/technological skills, such as experience with mobile app development, data analytics, and cyber security. Banks are also investing in training and development programs to help their existing employees develop the skills they need to thrive in the digital age.

 

Here are some of the key benefits of digital transformation for the banking industry:

 

• Improved customer experience:
  Digital banking can make it faster and easier for customers to conduct transactions. This can lead to increased customer satisfaction and loyalty. 
• Low costs:
  Banks can save money by automating tasks and processes. This can lead to improved profitability.
• Increased revenue:
  Banks can generate fresh revenue streams by offering new products and services.

Emerging Technologies

There are a number of emerging technologies that are also impacting the banking industry, such as blockchain, voice assistants, and Augmented reality (AR).
These technologies are still in their early stages of development, but they have the potential to revolutionize the way that banks operate and interact with their customers.

More Details on Emerging technologies  (Wewege, n.d.)

Recruitment and Training Strategies

In order to address the challenges and opportunities presented by these trends, banks need to develop effective recruitment and training strategies. These strategies should include the following:

• Develop a talent acquisition pipeline: 
  Banks need to develop a pipeline of talent with the skills they need to succeed in the digital age. This can include partnering with universities, vocational schools (eg: NVQ certified), and coding bootcamps.
• Invest in training and development: 
  Banks need to invest in training and development programs to help their existing employees develop the skills they need to stay up-to-date on the latest trends. This can include tuition/course fee reimbursement, mentorship programs, and on-the-job training.
• Create a culture of learning: 
  Banks need to create a culture of learning that encourages employees to take advantage of training and development opportunities. This can include recognizing and rewarding employees who are committed to learning and development.
  ["cultures that allow and enable people to learn rather than getting in the way. And this learning will doubtless cross the border to the world outside the organization: so many resources sit outside the organization, we have to provide access and tools for sharing. The organization cannot curate the sum total of learning needed, because we are all different. It’s about helping people to learn, not making them do it" (Thomas and Brown, 2014)]
  
  

By developing effective recruitment and training strategies, banks can ensure that they have the talent they need to thrive in the ever-changing banking industry.

References:

 

Ovington, T. (2022). Digital transformation in banking: A complete guide. [online] WalkMe Blog. Available at: https://www.walkme.com/blog/digital-transformation-in-banking/#:~:text=the%2021st%20century.-.

Techfunnel. (2019). 6 Applications of E-Commerce in Banking. [online] Available at: https://www.techfunnel.com/fintech/e-commerce-applications-in-banking/.

Thomas, D. and Brown, J.S. (2014). A NEW CULTURE OF LEARNING . Lifewide Magazine , [online] (11), Sep., pp.10–12. Available at: https://d1wqtxts1xzle7.cloudfront.net/74785173/Adapting_HE_to_the_Social_Age_of_Learnin20211117-26382-8hjy1y.pdf?1637156008=&response-content-disposition=inline%3B+filename%3DAdapting_HE_to_the_Social_Age_of_Learnin.pdf&Expires=1703091182&Signature=Md2ypEUdJ6vcXW9f6dWmmOpOdqsjxi5MM2Ldr7EuHNl015bdRL1WMu1ZkhZu8KSZPGefHTIMABJ3YntNRZMcu5J2-g7XoxAL9-lnv7HmBwEUXQLCjbNw1SHo~c1U5589uz~JAiyt4W3ExD57oBP8jB2cTcGJtCKLmSataO8E-O6qPfGTm9FU6nXxMy1I0qiL84Eh2WlFoulVGCNSULYzeu4c8QgckUFveiofAQZ3cLFlGee40nqnefakTvrNqkdfkb8FZtwGFpnd8wCp88kGskDW0GuA2f9NtuBuvXo-fTinngvp3sX6ccbGzCzGjlmAnUw0ZbMUjPA6NBG1YVjkOQ__&Key-Pair-Id=APKAJLOHF5GGSLRBV4ZA#page=10 [Accessed 10 Dec. 2023].

Wewege, L. (n.d.). Council Post: Seven Emerging Banking Technologies To Watch. [online] Forbes. Available at: https://www.forbes.com/sites/forbesfinancecouncil/2021/11/12/seven-emerging-banking-technologies-to-watch/.