Digitalization and the New Age Leadership in the Financial Services Industry

It is a known fact that the pandemic has acted as the biggest catalyst for the digitalization and transformation in the Banking and Financial Services Industry. The financial services industry is increasingly becoming a data and technology driven sector. The major underpinning for the sector to adopt technology is quite about behavioural science i.e. to have a better understanding of consumer behaviour and the landscape. And then accordingly build products and services to meet the evolving client requirements in a more efficient and cost-effective manner. 

Usage of new-age technologies such as artificial intelligence, machine learning and blockchain is rampant and has reshaped the entire ecosystem of the financial services industry. 

Every operator is today heavily investing in digital and technological infrastructure to stay ahead of the competition by providing seamless world-class services to their clients. However, investment in technology and infrastructure addresses only fifty per cent of the problem statement. For institutions to have success around their digital and innovation process, also need to be supported by a strong human capital leadership strategy. 

It is critical for the firms to have their business, technology and people strategy well aligned. It is imperative as far as the talent pyramid is concerned, that organisations not only hire technologically and digitally savvy talent at the entry and mid-level but also build a top-level leadership which is equipped to build a culture of innovation, digitalization and growth. 

There is a need to have strong leaders who along with their subject matter expertise, also have a good appreciation and understanding for the technology and can adhere to the evolving regulatory and compliance requirements. 

In today’s VUCA world, it becomes important especially for financial institutions to invest in the right kind of leadership, and for that, it is critical that they build internal and external capabilities, which facilitate broad talent outreach, have the right tools for leadership assessment, structured and scientific methods to identify and recommend the right leader fit in terms of skills and culture for the organization. In the era when businesses are reinventing and supply chains are becoming more advanced, there is a need for multidisciplinary leaders who have a broader overview of things and can maximize resource allocation. The Banking and Financial Services Industry is primed for growth and innovation, so it becomes important for the institutions to get their leadership mix right, since in these transformative times, the cost of leadership failure is very high, and it can set the organizations back by many years!