Transforming talent to win the digital race
A FEW years ago, DBS took a page out of the Silicon Valley playbook and held a hackathon internally. Early in its digital journey, building technology literacy and creating a nimble culture was a top priority for this financial services leader in South-east Asia. The hackathon involved understanding technology and building skills in human-centred design to create an app – a process that sowed the initial seeds of digital thinking in the organisation.
The secret sauce for success in the banking, financial services and insurance (BFSI) sector has not changed since. It still has to do with how effectively companies can transform their technology, talent and culture. What has changed is the accelerated speed at which BFSI companies need to do this, as the customer journey leapfrogs digitally. Active digital banking users in Asia-Pacific (Apac) increased to 88 per cent, up from 54 per cent in 2017, according to McKinsey, with emerging markets becoming a “hub of banking innovation” for digital business models. Under the hood of BFSI’s rapid transformation is a story of skill reinvention, with talent at the centre of their success.
Here are 5 ways BFSI incumbents across Apac are turning talent into a strategic advantage, to win on the digital battleground.
#1: Innovating from within: Upskilling beats hiring
In 2017, Lloyd Blankfein, former chief executive officer of Goldman Sachs, famously said: “We are a technology firm. We are a platform.” In today’s advanced digital landscape, every BFSI company is thinking like a technology firm. Yet hiring tech talent is both competitive and expensive. By upskilling internal talent online with cutting-edge technical skills, BFSI incumbents are closing the talent gap to drive digital innovation.
#2: Implementing strategies for ‘skills-first’ learning
Skills like software development, data analysis, machine learning, cloud computing and cybersecurity are in high demand, especially in Apac – BCG estimates 20 per cent of digital banks worldwide are here. Technologies like artificial intelligence (AI) and cloud computing are breaking new ground on online services and tailored customer service. In fact, Apac’s financial services sector is outpacing other industries on AI spends, for uses that go far beyond chatbots. BFSI organisations are adopting a skills-first approach to efficiently build and scale such digital skills. Companies are focusing on 3 key elements: the first is identifying critical digital skills to meet their business objectives. The second is developing a talent pipeline across the organisation and mapping employees to specific courses that teach these in-demand skills – customisation is key here, since every employee is at a different learning level. Finally, BFSI enterprises are activating training programmes at scale, empowering teams to upskill, reskill and collaborate in tandem.
#3: Building digital and data fluency
Digitalisation of products and services is now a top priority for banks in the Philippines, according to the Banking Sector Outlook Survey 2021. No surprise there, given that Filipinos are global digital native leaders. To meet the expectations of digital-first consumers, Bank of the Philippine Islands (BPI) is supplementing core banking skills with online courses on emerging technology and data sciences skills, ranging from data analysis to information systems and cybersecurity. With an increase in data sharing by customers, some BFSI incumbents are deploying comprehensive in-house data literacy initiatives. They are matching this “breadth” of learning with the required depth, to create “data-first” teams. This will position them to manage data effectively, to meet customer expectations for personalised experiences.
#4: Focusing on leadership development as a top priority
Leadership has transformed in the digital age and BFSI enterprises are keeping pace by nurturing next-gen leaders who can reshape the business. Business leaders need an enhanced set of skills today to champion technical innovation, steer change management and nurture top talent, as they create a future-ready enterprise. Working with BFSI organisations across Asia-Pacific, we do not just see an emphasis on developing core leadership skills, but also on hands-on training – to help leaders leverage “planning and data analysis” tools, or track and benchmark the development of human skills, for instance.
#5: Going beyond tech skills for the digital age
The democratisation of tech has raised the standard of competition, and with it, customer expectations. Users want convenience and personalisation – but not at the cost of their privacy. They expect a superior customer experience for every interaction. BFSI companies will increasingly need to prioritise human skills like creativity and problem-solving in an automated world, alongside technology skills.
By upskilling online, financial services incumbents are turning technological disruption into an advantage, while unlocking new opportunities to stay ahead in the digital race.
The writer is managing director, Asia-Pacific, at Coursera.
