This investment can help banking and capital markets executives run sophisticated scenario planning while allowing more time for strategic analysis. It can also allow them to easily track details from various subledgers—a process that’s nearly impossible when using legacy systems—to quickly analyze critical metrics and create more nuanced risk analyses.
“It’s about having a platform that’s going to give you the ability to react, to be agile, and to be resilient to all those changes in the industry,” says Viren Patel, strategic industry advisor for financial services at Workday.
2. Facing a Talent Shortage, Financial Services Firms Leverage AI and ML for Upskilling
The Great Resignation forced banks to spend more to snag top talent. Big banks like JPMorgan, Citigroup, and Bank of America all reported markedly higher compensation expenses in 2021 and 2022. While the Great Resignation may be in the rearview mirror, many financial organizations are still facing intense competition for top-tier talent.
Attractive compensation packages alone won’t be enough to secure the highly agile workforce banks need. Financial institutions also must take a hard look at their company culture and the employee experience. Building and maintaining a top-performing, future-ready workforce requires cultivating and celebrating finance professionals who are strategic thinkers and lifelong learners.
Accordingly, organizations should provide ongoing learning opportunities while ensuring their teams are using the latest tools and technologies that make their jobs easier.
“Learning is the most exciting part of a job, and if you have the right people, they want to learn new things,” observes Gwen Shaneyfelt, executive vice president and chief accounting officer at Franklin Templeton.
The entire sector is seeking workers with strong data analytics and technology chops to help them anticipate and respond to change—98% of financial services organizations rank technological proficiency or the ability to adapt to new technologies as the top skill they need to develop over the next five years, according to a Workday and PwC industry perspective.
To stay competitive and fill their workforce needs, financial organizations must augment outside hiring with intensive upskilling. “Banks must expand their talent pool by tapping into skill adjacencies and proactively help employees develop new skills at speed,” explains Aurelie L’Hostis, a senior analyst at Forrester.
That’s where AI and machine learning (ML) capabilities will come into play—enabling organizations to focus less on traditional degrees and linear career progression to adopt a more skills-based approach.
By providing insights and predictions that identify and align skills with jobs, AI and ML transform employee data into a strategic advantage. This combination of data, technology, and automation can help financial leaders allocate resources more effectively, improve productivity, and make better use of their talent.
3. To Attract Customers and Appease Regulators, Banks Go Big on ESG
Economic volatility and industry turmoil aren’t the only challenges on banking leaders’ radar. They’re also wrestling with urgent environmental, social, and governance (ESG) concerns. Nearly three quarters (72%) of CEOs believe stakeholder scrutiny on ESG will continue to accelerate, according to a global survey by KPMG.
Not surprisingly, many industry executives are shifting their portfolios to accommodate climate risk, investing in new companies and technologies that are fighting climate change, and are increasingly committing to become carbon-neutral. Not only is that the right thing to do, but it’s what customers increasingly expect.
“[Customers] are going to want to know how you’re going to get to net zero, or else they’re going to buy the product from someone else, and that’s going to force activity fast,” says Brian Moynihan, CEO of Bank of America.