Digital transformation in banks 

HOW IS THE BANKING SYSTEM CHANGING IN THE DIGITAL AGE?

WHAT SHOULD BE THE DIRECTION OF CHANGES IN POLISH BANKS?

WHAT COMPETENCIES DO EMPLOYEES LACK?

New tech­no­lo­gies are chan­ging the wor­kings of the finan­cial sys­tem, under­mi­ning the role of the bank that has been sta­bi­li­zed over the past cen­tu­ries. The expec­ta­tions and needs of indi­vi­du­al custo­mers have chan­ged, as they move fre­ely onli­ne, are accu­sto­med to a wide ran­ge of cho­ices and demand atten­ti­ve tre­at­ment. Also chan­ging are the needs of digi­ti­zed com­pa­nies that are incre­asin­gly sel­ling the­ir – often digi­tal – pro­ducts thro­ugh the e‑commerce chan­nel on inter­na­tio­nal mar­kets and need inno­va­ti­ve pay­ment solu­tions. In order to main­ta­in and expand the­ir mar­ket pre­sen­ce, banks need to under­go a major digi­tal trans­for­ma­tion, which invo­lves inter­nal restruc­tu­ring and a shift in thin­king abo­ut the natu­re of a ban­ke­r’s job.

Sha­re

HOW IS THE BANKING SYSTEM CHANGING IN THE DIGITAL AGE? 

One of the flag­ship pro­ducts of the digi­tal eco­no­my revo­lu­tion are fin­techs, which are har­nes­sing the poten­tial of the latest tech­no­lo­gy to impro­ve the way finan­cial servi­ces are deli­ve­red. The­ir logic puts the custo­mer at the cen­ter: they pro­vi­de servi­ces elec­tro­ni­cal­ly as stan­dard, allo­wing custo­mers to use them any­whe­re, any­ti­me. They are also making wide­spre­ad use of block­cha­in solu­tions that could thre­aten banks» histo­ric role as inter­me­dia­ry and guaran­tor of finan­cial transactions.

How are banks respon­ding to fintechs?

Wykres objaśniający

Sour­ce: PwC (2017). Glo­bal Fin­Tech Report.

„Eve­ry­one is heavi­ly focu­sed on hard com­pe­ten­cies such as com­pu­ter scien­ce, data scien­ce and arti­fi­cial intel­li­gen­ce. It is cle­ar that they are impor­tant. But most impor­tant is a com­bi­na­tion of hard and soft skills, such as com­mu­ni­ca­tion, cri­ti­cal thin­king and team­work. The­se are com­pe­ten­cies that are impor­tant in eve­ry job and cri­ti­cal to care­er suc­cess across all sec­tors” Anant Agar­wal, foun­der and CEO of edX.

WHAT SHOULD BE THE DIRECTION OF CHANGES IN POLISH BANKS? 

Digi­tal trans­for­ma­tion means banks need to chan­ge the­ir orga­ni­za­tio­nal cul­tu­re and restruc­tu­re inter­nal­ly. Buil­ding advan­ced mana­ge­ment com­pe­ten­cies in e‑leadership sho­uld be a prio­ri­ty for the ban­king indu­stry. Mean­whi­le, exe­cu­ti­ves in the finan­cial sec­tor have the lowest con­fi­den­ce in the­ir digi­tal skills com­pa­red to all other sec­tors, accor­ding to the study.

WHAT COMPETENCIES DO EMPLOYEES LACK?

The ban­king sec­tor is among the most thre­ate­ned by the lack of employ­ees with the right digi­tal com­pe­ten­cies digi­tal com­pe­ten­cies. As many as 62% of the repre­sen­ta­ti­ves of this sec­tor dec­la­red that the lack of employ­ees with appro­pria­te com­pe­ten­ces has a nega­ti­ve impact on the com­pa­ny­’s deve­lop­ment. The bank employ­ees them­se­lves were convin­ced that the­ir cur­rent com­pe­ten­cies would cease to be needed and rele­vant within 2 years (30%) or 4–5 years (44%).

Com­pe­ten­cies of a digi­tal bank employee

Grafika poglądowa do raportu

Sour­ce: Cap­ge­mi­ni (2015). World Reta­il Ban­king Report.

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