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