Talent & Transformation‘s experience in the Financial Services industry has made it an adept partner, able to address the issues that are unique to the industry. Our deep experience in the industry tells us that it will continue to face headwinds in the near-to-medium future – both macro- and micro-economic.
Ongoing and political military conflicts, and geo-political tensions are disrupting the market. Recent and imminent elections in various countries (U.S.A; Russia; China; Argentina; Singapore –to name a few) will undoubtedly bring with them, changes in fiscal policies and the regulative environment. As a result, the sentiment of the industry – and its clients, in many countries, may be one of prudence whereby they would prefer to pause and observe how the landscape evolves before increasing their commitment and exposure.
We understand the inflationery pressures impacts on the industry. More significantly is the pain of interest rate volatility –specifically when rates are high, and the prices of stocks are low, driving up the deposit and fund expense, which has a negative effect on earnings. This retards Merger and Acquisition activity. On the other hand, potential drivers lie dormant for the M&A market: growth of the interest margin and decreasing deposits could well be the impetus to revitalize activity. There are additional potential drivers however: product innovation; geographical expansion and digital transformation. Accompanying any M&A is invariably the H.R due dillence and thereafter, integration strategy of people elements – differing cultures; people policies; leadership styles; skills; reward structures between Acquirer and Target, and the need to deploy a Transition Plan for the people-organization interface, as part of the Change Management Plan – a task that Talent & Transformation is well accomplished in.
Talent & Transformaton is cogniscent of the increasing regulatory pressures –it is common knowledge that in 2023, several notable governments and regulators ratified or advanced climate legislation and directives for reporting. This is suggestive that there will an imcreasing impetus for financial services providers to attend to sustainability and ESG factors. ’Sustainable Finance’ is a term that has come to the fore recently.
An additional layer of complexity that Talent & Transformation is well-versed in, is technological turbulence: the industry having to grapple with A.I implications, cloud computing; ever-increasing cyber-risk and fraud. Indeed, certain of our banking clients report in excess of 100,000 hacking attempts daily.
The Voice Of the Customer has also started shift: increasingly, their expectation is for Financial Service is to transition from being merely a transactional partner, to being a transformative partner to them – the Augmented Product, in classical marketing terms. We have also witnessed a tentative and slight fading of boundary lines between Financial Services and other industries, whereby affinity partnerships are merging – witness the intallments / HP option offered on Amazon ® through its partnership with Barclays Bank ®.
We further understand that the visting a bank holds little appeal for Generaton Z, and that in a crowded market, they seek a simple, rewarding relationship with their service provider. Talent & Transformation has had the privilege of assisting a certain bank in meeting this demand: whilst maintaining a traditional banking offering for earlier generations, a soft-bank subsidiary sub-brand was created for the latest bankable generation. Social media campaigns originally invited the Generation Z audience to co-design the new soft-bank sub-brand in collaboraton with the bank’s management, and were honored as ‘Co-Founders’ on the new brand’s website, social media and literature. Employees within the sub-brand wear colorful golf-type shirts and drive colourful Mini® cars to the clients workplace or home to secure their signatures and documentation for their loan / account / credit card applications, and address them by their first names. Staff also deliver cash of a minimum amount to clients, in the event of it being inconvenient for the client to drive to an ATM themself. An astute Social Media and Brand Experience strategy customized to Generation Z was then integrated: during peak ATM usage times, free Starbucks ® coffee was gifted to ATM users on the spot, and they were photographed with the bank staff receiving their coffees. The photographs were posted on Social Media thereafter. However, Social Media posts were not confined to reciepients of free coffee: clients were also invited to post ‘selfies’ of them enjoying their other banking rewards: the music concerts; the sky-diving vouchers; sports car racing training days a racing track –etc. Innovation; brand-outreach and targeting par excellence! Predicatably, this transformed the bank sub-brand into somewhat of a local cult amounst the newest bankable generation.
Talent & Transformation is keenly aware that the generational voice factor is not limited to end-user consumers, but extends to employers’ talent: a recent survey revealed that only approximately 10% of Millennial workers in Financial Services planned on having long-term tenures, and that engaging, developing and retaining them require strategy re-think. We further understand that the challenge is further complicated by Financial Services’ multigenerational workforce containing differing values and views: a recent report from LinkedIn revealed that 86% of Millennials would be willing to undergo a pay reduction if it would help them to work for an organization whose values resonated with theirs. By contrast, only 9% of Generation Baby Boomer were prepared to do the same. Apart from the implications for Compensation and Benefits strategies, we understand the cultural implications for H.R that stemmed from the survey, wherein 70% of all ages surveyed would not work for a market leader if it meant having to tolerate a poor corporate culture.
These factors call for novel strategic approaches; increased agility of the industry; improved innovative capacity; enhanced instrumentation, and leadership that is able to guide employees (especially those to who have not previously witnessed these challenges) through the turbulence.
From whichever perspective these challenges are viewed, the critical success factor can always be distilled as ‘talent’ – this is what comprises the people-organization synergy that must be harnessed to transform capability and capacity to rise to the challenges. Indeed, Talent & Transformation understands that as many as 70% of CEOs, manifested their belief through a recent survey, that their growth aspirations were threatened by a lack of key skills.
Talent & Transformation possesses a track-record of articulating efficacious people-organization strategy for Financial Services, and would be pleased to elaborate on how we could assist your Financial Services enterprize.