In my last letter, I looked at the need for speed to keep up with the digital revolution. I illustrated that with a few success cases from small community banks.
And I quoted Gartner: “Digitalization is the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business.”
The thing is that “the use of digital technologies to change a business model” is anything but trivial. The tricky part is that “digital” is not only about overhauling technology but corporate culture as well. And it is people who define culture.
That is why EY in its recent study Transforming talent – The banker of the future says:
“Digital disruption will make tomorrow’s banking workforce unrecognizable from today’s. Banks must build a culture that nurtures diversity of thought and ensure bankers have the new skills they need to succeed.”
The necessity for new skills will cut across positions at pretty much all levels, from analysts and managers to directors and up to the C-level.
Agile Scrum versus Finance 101
So, what kinds of skills are we talking about here? Boston Consulting, looking at the Power of People in Digital Banking Transformation identifies no less than nine areas of digital skills. The terms banking or finance don’t even appear there.
- Digital and Social Marketing/Engagement
- User and Customer Experience
- Digital and Mobile Product Management
- Innovation and Strategy
- Big Data & Analytics
- Information Security
- Digital Payments
- Broadening the talent pool… via accessibility. For instance, what roles in banking really require prior academic achievements? For those who should connect with the customer, perhaps local knowledge and people skills are more important? And it might allow you to hire more people from the local community.
- Attracting talent… with purpose. High-flying IT and engineering grads needed in the digital age do not turn to banks as their employers of choice. There are no banks ranked in the top 25 most attractive companies to work for and only two in the top 50. So, banks must restate their value proposition. And for Millennials that often means “purpose.” As I have pointed out in the past, luckily for Community Banks, they can point to a much clearer purpose proposition than anonymous big corporations.
- Recruiting… with new technology. If you want to appeal to employees who will lead your digital transformation, it is a tad contradictory to torture them with an antiquated online recruiting tool. Also, be aware that they are judging you as a prospective employer based on your current digital presence, and your willingness to change and evolve that strategy for the future.