Comparing Banking Compliance and Human Capital

Comparing Banking Compliance and Human Capital

No matter what happens on November 8th, two things will be certain in the banking world: Regulatory Compliance and Human Capital will be in high demand. How companies find, recruit, and hire top talent is about to change significantly. Here’s how:

Social Media and quickly evolving technology are posing significant changes to both Compliance Officers and Hiring Managers. Following the election, Chief Compliance Officers will need to continue to look at technology management, cybersecurity, and developing products and marketing that will challenge the compliance regulations.

More and more banking customers are using mobile applications for managing their accounts. In 2011, 23% of mobile phone users and 43% of smartphone users reported that they had used mobile banking in the last 12 months. In 2015, 43% of mobile phone users and 53% of smartphone users utilized mobile banking. Top candidates are also taking their job search on the go using social media. According to a recent study, 67% of job seekers use Facebook, 45% use twitter and 40% use Linked In.

If banking leaders do not recognize where their top candidates and customers are coming from, then like the CCO that refuses to identify the need to prioritize social media regulations, both are behind the trend and the train will quickly pass them by as they stand at the station waiting for it to stop and let them on.

Education will also be key in the world of Compliance and Human Capital. Revenue producers often see compliance regulations the same as business owners view safety measures, simply slowing profits. In many cases, Hiring Managers fail to see that although we are in a world of online applications and virtually endless resumes at their fingertips finding the right candidate takes a human touch. A bridge must be built to explain the cost of not building compliance into the programs from the ground up, just as the cost of hiring the wrong person for the job can cost the team necessary production to meet their annual goals, not to mention the overall moral and individual career fulfillment affecting the banks turnover expenses.

The culture of a bank attracts, retains and energizes every department within the organization. Human Capital teams and Compliance teams must consider advancements in technology and social media and embrace the individual person while planning their budgets in 2017. Hiring managers must invest time in approaching their candidates with respect to fitting in with their teams and evaluating skills beyond what they see on a resume, and Compliance must impart an understanding of why compliance is positive to everyone in the institution person to person, not just in a memo.