Forging ahead or falling behind?
Organisations can’t afford to hold off digital transformation any longer. It should be happening now. And if it isn’t, you may already be falling behind.
The financial services industry has realised that a cultural shift is under way. According to the Roubini/ThoughtLab Wealth and Asset Management 2022: The Path to Digital Leadership report, 96 percent of CEOs view digital transformation as central to their businesses, versus 76 percent just a year ago. Increasingly, consumers want access to more services, and demand superior experiences. These growing expectations are driving technological adoption across the financial services industry.
Becoming operationally agile.
Digital-first financial institutions can adopt and develop agile operations—allowing them to increase operational efficiency, attract and retain the best talent, identify new revenue models, and foster a culture of innovation.
In this digibook, we explore what it means to become an agile organisation, and discuss how agile finance leaders can drive adoption of new delivery models. We’ll explore the changing role of CFOs and CHROs, and examine how a culture of collaboration can help attract the agile workforce required for profitable growth.
“Wealth and Asset Management 2022: The Path to Digital Leadership,” Roubini ThoughtLab
For most industry executives, the question is no longer whether the industry will go through a digital metamorphosis, but how they can ensure they are not left behind.
Richard Fairbank, chairman and CEO, Capital One
Every bank is going to need to transform itself by innovating. The digital revolution is changing banking on just about every dimension.
Your big opportunity.
But digital transformation represents an opportunity for the financial services industry, too. Consider these statistics on the benefits of digital adoption:
Firms that have already reached an advanced digital stage report an 8.6 percent increase in revenue, an 11.3 percent rise in productivity, and a 6.3 percent improvement in market share. Those that move too slowly stand to lose 79 million USD per billion dollars of revenue a year.“Wealth and Asset Management 2022: The Path to Digital Leadership,” Roubini ThoughtLab
Revenue vs. cost of going digital.
That stat on productivity is particularly revealing, and highlights how digitalisation is being used to empower the workforce.
One thing is clear: Internet-enabled business models and disruptive technologies will continue to radically alter the basis of competition.“Agile Finance Revealed: The New Operating Model for Modern Finance,” AICPA
Safra Catz, chief executive officer, Oracle
There has never been a more important time to be in finance, using your data-driven insights and enterprisewide view into operations to guide your organisation through today’s uncertain times.
Success story: HSBC.
Joanna Fielding, FCMA, CGMA, and CFO, HSBC Global Services Limited
Moving to the cloud was essentially part of our new technology strategy. While it started as a program to increase control and transparency around our costs, it’s also enabled us to respond to changes in the regulatory environment. We couldn’t have responded to that regulation as quickly as we’ve been able to do if we’d gone with an on-premises solution.
Agile Finance Revealed
The new operating model for modern finance.
Through Relentless Automation
To predict the future
To drive business outcomes
The agile bank is tech-enabled. It’s empowered to be more efficient—automating any tasks that don’t add business value. It’s enhanced with superior, AI-driven insights—sifting through third-party and internal system data to augment finance. And it has the influence to support a consolidated data management approach—providing confidence in rapid decision-making across lines of business.
“Who Is Better at Strategy: CFOs or CSOs?” Harvard Business Review
Two-thirds of CEOs want their CFOs to spend more time driving growth—ensuring strategy, budgets, and capital allocation are fully integrated, growth spots are nurtured, and short-term demands are balanced with longer-term success.
“Agile Finance Revealed: The New Operating Model for Modern Finance,” AICPA
Increasingly, the CFO has a demanding role to play as the corporate strategist or ‘copilot’ to the CEO in ensuring the business adapts for the digital age. These new demands on CFOs and their finance teams are often driving finance to rethink their mission and operating model—and the pace is accelerating.
The new digital workforce.
Meanwhile, fintechs are benefiting from the influence of the new digital workforce. Their agile, innovation-first cultures reflect the way digital natives want to work, and that means traditional financial institutions must work hard to attract the best and brightest new talent.
To attract and retain digital natives, financial services must:
- Work to rebuild corporate trust and brand identity
- Offer “always-on” learning and career development
- Provide a modern, innovative, collaborative working environment
- 40%of millennials would switch to a Google Bank.
- 60%of institutions believe top talent will want to work for those aligned to their own social values.
- 72%of financial services CEOs see limited availability of talent as a threat to growth.
Life after crisis.
The deep banking crisis of the last decade has had a profound effect on the financial services industry. Confidence in the industry has been rocked, reputations are at an all-time low, and traditional players must work harder to attract fresh talent. Meanwhile, mergers and acquisitions have become increasingly commonplace—and with them, the challenges of integration, reskilling, and restructuring that inevitably follow. A strong focus on human capital management will create a new culture that effectively engages talent, and rebuilds trust and reputation.
Modernising the workforce.
The financial services industry is changing, and the workforce must change with it. Banks may need to manage a reduction in workforce numbers of 5–20 percent over the next few years, and must optimise efficiency to make up the shortfall. At the same time, they’ll need to compete for the highly sought-after digital-native talent necessary to enable innovation, and effectively reskill their existing workforce to support a modern customer experience. New technologies such as machine learning and analytics are driving a new working experience, enabling personalised learning and development, collaboration, and talent identification to help you attract, develop, and retain the very best talent.
Closer alignment of HR and finance promises greater productivity, greater performance, and more-effective recruitment.
“Agile Finance Revealed: The New Operating Model for Modern Finance,” AICPA
67 percent of agile finance leader teams spend more than half of their time on forward-looking analysis/insight, versus just 45 percent of others.
Michael Shostak, SVP and CMO, Economical Insurance
Culture really sets the stage. Our culture creates the conditions for how innovation happens.
The Components of a Complete Financial Services Cloud Platform
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