Banking and Finance System is the backbone of human civilization. 100% of human population interacts with banks on a nearly daily basis.
Banks and Financial Institutions have witnessed a lot of economic turmoil in the past and continue to experience so.
Last decade experienced several heavyweights of the industry stumble and collapse without much warning. A major part of the failure was attributed to human factors like skewed compensation on higher risks, greedy play with performance data, and lesser long-term accountability.
To avoid the repetition of these incidents, organizations needs to pay attention to the organization building initiatives. The values, employee information, employee performance, integrity and transparency in the processes must be meticulously examined and managed.
Banking Industry – The Tasks Ahead
Like any other industry, this sector also has certain general and specific business processes. Industry Experts and Analysts mention the following as the pressing tasks for Banking and Finance Industry:
- Highly Aggressive Sales Targets & Customer Service Benchmarks
- Continuous Coaching & Mentoring of Employees
- Frequent Goal Tracking and Performance Reviews
- Tracking of Employee Honesty & Integrity
- Better Employee Experience and Continuous Motivation
- Rational Compensation and Benefits
- Employee Data Security & Privacy
- Millennial Workforce and Their Digital Expectations
- Maintaining Legal Compliances
- Workforce Planning for Productivity and Profitability
Each Banking and Financial institution aims at becoming world-class provider of services and products to compete well in the industry. Employees and their performance play a vital role in improving operational efficiency and effectiveness of the banking processes.
To effectively operate the business in the middle of an economic downturn, Banks and Financial institutions need to completely revamp their processes, employee policies and bank upon the digital HR technologies.
Digital Transformation in Banking & Finance Sector
Financial Organizations have been part of the huge automation drive at the operations level, whether it was on the software front or the hardware level. Automation and digitalized work environment have automated HR processes, minimized human intervention and made processes intuitive and brought transparency to the table.
Automation has done wonders to improve the customer experience, improved the speed of service and lowered the cost of operations. The next wave of digitalization is the way organizations manage their people.
Performance management challenges in banking and finance sector continue to escalate. Performance management is coming to life through advanced digital technologies. This is also influencing leaders, managers and employees to take a more active role in managing their performance and growth.
Technology-enabled performance management is holistic, and focuses on maximizing employee development and improving performance of individuals and organization, as a whole. According to a Pew Research study, 46% of workers feel their productivity has increased with the growing use of digital technology.
Digital transformation at workplace empowers management to collaborate with employees, enable employees with performance tools and helps in developing talent and leadership.
More than 50 percent of the total workforce is expected to comprise of millennials by 2020. Millennials spend most of their time on smartphones and prefer digital technology to remain connected with the world. They expect technology-enabled workplaces too. Thus, the need to move to a digital workplace is becoming promising with each passing day.
Automation and digital HR is a smart move to significantly improve ways to onboard new employees, inform them about company policies, track their goal achievements, monitor performance, provide training opportunities, and streamline other HR processes.
Innovative digital technology not only provides a faster way to accomplish mundane people-related tasks, but also reduces costs involved and improves accuracy and efficiency!