5 Reasons Why Banking and Financial Services Organizations are Building a Digital Workforce

Early in 2020, the COVID-19 epidemic struck, but the global financial sector had already undergone a profound transformation. The branch footprint had decreased by roughly 20% in the United States and by 60% in the Nordic nations during the preceding ten years. As individuals began to anticipate more and more from their online banking services, consumer expectations were changing quickly. Banks adopted next-generation technology in the middle and back offices to help reduce costs and deliver better services as they digitized their front ends in response. 

These trends have become more urgent as a result of the worldwide epidemic. Bank HR leaders effectively changed their organizations and methods of operation during the early stages of the crisis; banks and their workforces reacted astonishingly well. Banks immediately changed their sales and service models to be centered around digital technology, increased the use of remote guidance, and redesigned physical distribution using the best digital transformation solutions. 

Read Also: Automation + Digital Transformation: Key to Unlocking Business Growth 

Transformation of the Workforce 

Creating a digital workforce requires both the development of general skills and the ability to win over people’s hearts and minds. Digitization is bringing about a new type of financial services organization and the associated personnel requirements. The modern FS professional blends basic competencies with digital fluency, agility, and a willingness to embrace the future. 

Where does the change start to happen? Every organization has unique beginnings, market needs, and strategic goals. Yet every endeavor follows the same basic phases. These don’t simply concentrate on learning and development; they also aim to garner long-term support from the workforce by providing chances for them to use their newly acquired knowledge and sparked creativity. TransformHub, the Top Digital Transformation Company in Singapore, takes accountability to digitally transform your businesses. 

5 Reasons Why Banking and Financial Services Organizations Are Building a Digital Workforce 

1. They don’t fear complicated workflows

AI-enabled Digital Workers execute full-scale responsibilities instead of merely repetitive activities, in contrast to standard RPA bots. They have training from BFSI organizations much like yours, so they can manage your complicated processes right away. 

Written justifications are provided by Digital Workers for their choices. And if they have questions about a case, they escalate it to their colleagues in the real world.  

2. They conserve cash 

Even in times of economic stability, highly regulated industries face risks and difficulties in conducting business. How can you achieve steady growth with so many shifting goals in light of the recent global chaos, including the Covid-19 crisis, the choppy job market, or the impending recession? 

Consider the large employee-related expenditures resulting from historical skill shortages, declining customer loyalty, burnout, and the protracted ramp-up period for new workers to become self-sufficient and productive. The increasingly complicated regulatory environment poses a persistent risk of expensive human error while executing tedious, time-consuming manual tasks, even for teams that are fully staffed and trained. Digital Workers can help you save money in this situation and maybe save the day. 

3. They reduce burnout among employees 

Burnout at work is a serious issue. It may easily result in mistakes and, of course, giving up, both of which have significant costs. Digital Workers, in contrast to conventional teams, don’t grow bored working the same tasks repeatedly. 

While Digital Workers free your teams from dull, repetitive work, we recognize that this can also pose a threat to the job security of your employees. 

4. They advocate for compliance 

Financial Institutions may rest easy knowing Digital Workers are working around-the-clock to uncover the real dangers to your firm and sort out noise in a tiny fraction of the time it would take your personnel, despite the more complicated and demanding regulatory landscape. 

5. They increase efficiency all around
 

AI-enabled Digital Workers are your Swiss army knife, enabling you to achieve comprehensive efficiency benefits across your business and freeing up your team to address complex, high-risk instances where their value shines. These Digital Workers have a track record of saving both time and money. 

Benefits Of Digital Transformation in Banking and Financial Services 

Financial executives are striving to adopt digital transformation activities to keep organizations competitive, albeit at varied paces, to fulfill customer needs and match today’s pace of innovation. 

The adoption of digital workplaces, where technology rather than a physical location facilitates communication and teamwork, is frequently where digital transformation starts. Companies may offer the following by investing in digital workspaces that link staff and subject-matter experts across departments and geographical locations: 

• Greater team alignment leads to quicker and more accurate customer service. 
• Teams’ capacity to automate administrative duties and modify procedures, releasing them to take on a more difficult and complicated job 
• Greater haste in escalating and resolving important occurrences 
• Higher levels of organizational transparency 

Read Also: The Impact of Digital Transformation in the Insurance Industry 

What Modern-day Business Looks Like 

While every organization has a distinct approach to digital transformation, all digital businesses have the following essential traits. 

Collaborative: Each organization member actively contributes to the realization of a common goal. Building trust, encouraging openness, and energizing people entail collaboration across teams and at many organizational levels. 

Cultural: Calls for a departure from traditional corporate hierarchies and structures and the empowerment of staff members to take initiative and offer ideas. 

Cloud-based: Cloud-based services let companies pick the ones that best suit their needs and reduce their IT and infrastructure expenditures because they are affordable and flexible. 

Mobile: Customers want companies to be simple and convenient. As a result, they must be usable on mobile devices, which account for more than half of all online traffic. 

Innovative: Digital firms constantly experiment and then learn from the results to guide more significant changes throughout the whole organization. 

Continuous: There is no beginning and end date for this project. You need to keep learning and improving since technology will keep changing and requiring adjustments to how things are done now. 

Data-driven: This entails not just gathering and analyzing data about your consumers but also monitoring internal business activities. 

Customer-centric: In the end, all these changes are aimed at giving your customers a better service and experience. 

What Kinds of Roles Are in the Future? 

Technology and the collective intelligence of humans may be combined to create something wonderful. Let’s forecast future positions based on upcoming opportunities and challenges to keep the workforce planning team updated. 

• Decision-making algorithms will function in a rapidly changing world of altering laws, fresh knowledge, and evolving products. It’s a tough job to continuously adjust these algorithms to improve the banking client experience. 
• To collect data and respond to inquiries, banks already employ chatbots. As banks and consumers use voice and text chatbots, conversational interface design is becoming more and more necessary. Conversational interface designers must integrate artistic, anthropological, and linguistic components to create low-friction interfaces that go beyond addressing urgent problems to pleasure users. 
• The major interface for digital banking in the financial sector will be MR and AR. Banks may place any imagined character and let clients carry out their actions by placing a layer of the digital world over the actual environment. These intricate 3D interfaces will be created by MR designers. 
• Customers can choose services delivered through applications, speech, augmented reality, or virtual reality as the line between distant, physical, and digital worlds quickly blurs. Service representatives must switch between virtual and physical settings to suit consumer demands as mixed reality replaces traditional interfaces between humans and technology. The ability to communicate effectively with customers while demonstrating empathy is a skill that service advisors must possess. They must feel at ease using important communication tools, including acting in a virtual setting. 
• Customers must be onboarded into the digital procedure to replace a lost card. It adheres to a set procedure that strikes a balance between security and legal requirements. As these processes incorporate service and information components from many sources, their complexity and pace of development are likely to vary. Process researchers will examine, put together, and improve these workflows, making ongoing adjustments to increase throughput and reduce friction. To comprehend complex, interwoven workflows, identify issues and bottlenecks, and develop and test potential solutions, they require discovery abilities. 
• Relationships between banks and global technology businesses must be closely monitored, maintained, and subject to discussions. Someone needs to keep an eye on behavior and use while guaranteeing performance and regulatory compliance when money and data move across enterprises. The people in charge of this will strike a balance between compliance, security, risk management, and technical expertise of the digital interfaces. Communication skills will also be very helpful. 

Read Also: The Top Digital Transformation Trends That Will Shape 2023 

5 Principles of Building Tomorrow’s Workforce Today 

Planning the workforce is necessary to bring individuals together for the upcoming phase of the transformation process. The workforce planning team will approach the future workplace using the five guidelines listed below. 

1. Pay attention to workforce planning and future workplaces
 

For a very long time to come, banks will continue to operate in a hybrid environment. Moving techniques that have an impact on in-person talks to video or conference calls are insufficient. 

Banks need to implement new working procedures that assist virtual relationship development, leading remote teams successfully, cross-functional cooperation, making connections, and forming informal networks. 

2. Increase productivity at work by employing automation 

Every department will be impacted by automation and artificial intelligence, which alone your human resource and technology departments are not equipped to handle. Before completely implementing automation and upskilling the workforce, managerial support is required. 

The company must take the initiative while providing the right assistance to the populace and realizing the desired rewards. Banks’ attention will be on the role that automation and digitalization have played in enabling remote work and achieving productivity goals. 

3. When redefining corporate goals, put people and purpose front and center 

The workforce planning teams are still in charge of people even if they can’t salvage the occupations that technology has rendered obsolete. Workforce planning must assist individuals by giving them the chance to advance their education and assist them in changing roles within the bank. 

Leaders in workforce planning must describe the upskilling and career advancement plan. The management team must also help employees become used to technology by finding ways to reinforce and support it. 

4. To improve adaptability, incorporate agility into workforce planning 

The new adage is “be agile or be irrelevant.” Instead of a static future, make plans to have a dynamic basis. Banks may be prepared for a variety of eventualities when labor planning is nimble. Testing, learning, and rapid scaling are crucial. 

Organizations may advance and reduce the skills gap in two ways: employee training and upskilling. They furthermore observe increased employee involvement, trust, and productivity. 

5. Possess a plan for a fundamental transformation in the workplace. 

There may be a need for more drastic adjustments from the workforce planning staff. By defining the competencies and capabilities that employees should have as well as the methods for attracting and developing that talent, AI-based workforce planning solutions may take control of the bank’s future. 

The workforce planning team must utilize this as a catalyst for upskilling and create chances throughout the whole business to employ RPA, blockchain, IoT, data visualization, and manipulation tools. Training individuals on digital and collaborative tools to enable virtual work is a start. 

A clear story about the bank’s direction must be developed for workers by the workforce planning team when banks start their transition. The planners must continue their innovative pace as employee anxiety about the future increases. 

Read Also: Embark on Your Digital Transformation Today 

Embrace Change and Take the Initiative with TransformHub 

There are no quick cuts to a company-wide digital transformation in banking and financial services; there are challenges. However, in the end, it will increase your company’s innovativeness, keep your staff more involved, and help you expand your consumer offers. You may improve your business’ and workers’ ability to be competitive, flexible, and most crucially, adaptive in today’s financial environment by investing in digital transformation. Learn how the TransformHub’s digital workers can change the way your business operates by providing the best digital transformation solutions. 

Therefore, get in touch with us immediately now to begin your transition to a digital workforce while the competition heats up in the growing industrial horizons of banking and financial services.