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How Fintech is Shaping the Banking Industry for the Future

How Fintech Is Shaping The Banking Industry For The Future

Innovation in the banking industry continues to be the key factor for financial institutions to survive in today’s digital era. According to recent statistics, 82% of financial organizations say they plan to partner with fintech companies within the next 3-5 years.

Here are just a few ways FinTech is shaping the Banking and Financial Services industry for the future:

Customer-Centricity

The shift to more customer-centric models can be directly attributed to the increase in demand from the younger generations. These consumers want to have quick, efficient transactions done at the palm of their hands. FinTech companies have embraced this. According to PWC, only 53% of people believe that banks and financial institutions are customer-centric, while 80% say that FinTech companies are customer-centric. A recent study shows that 71% of millennials would rather go to the dentist than hear what their bank has to say.

Need for Experts in Fintech Industry

I’ve recently had experience with a couple of Financial Institutions looking for candidates with FinTech industry backgrounds. They’re looking for these candidates to bring their ideas and experience to the bank/credit union scene. Because let’s be honest, not a lot of folks understand the FinTech industry if they’ve been in the banking world for a while. As a result, there has been a huge shift in the need for FinTech skills.

I have helped three different institutions this year alone with their recruiting strategies and large projects aimed towards FinTech developments.

A need to adapt to change, quickly and effectively:

Banks and Credit Unions have been slower to make the change to a more digital-centric model. There are a few reasons why this is the case. The silos within banks and credit unions make it difficult to pivot and adapt to changes in the market. Additionally, it’s challenging to make changes due to the legacy systems they’ve built up over the years. Introducing a new platform or changing systems causes a significant shift. These profound changes and products can directly affect the customers and members of the institution.

One of the financial institutions I helped with FinTech projects had a three-year timeline to switch over to their new FinTech platform. This required an immense amount of strategy planning, technology design, regulatory compliance checks, and other maintenance work for their IT teams. These timelines must be drastically reduced in order to keep up with the ever-changing world we’re in today.

If you’re looking for a FinTech professional to take your initiatives to the next level, let’s have a conversation!

resume

The Must-Haves on a Resume in the Banking/Credit Union Industry

resume

The financial services industry is ever-changing and so are the needs/requirements for the talent the institutions typically seek. Sure, there are some positions within financial services that require past banking experience. However, we’re going to take a look BEYOND experience and discuss the other details that you must include on your resume.

Education

This may seem like a no-brainer; however including GPA, Cum Laude, or Dean’s list info can be very beneficial. Especially for those that have recently graduated. If you’re well into your career, this rule does not apply to you because your experience will speak for itself. Banks and Credit Unions also love to see any Banking-related certifications or degrees.

Certifications/Awards

Listing your certifications or awards from either prior jobs or from school is a great way to set yourself apart from other candidates that may be under consideration for the same role. There are a ton of certifications that are very desirable in the banking/financial services industry, such as CFA, FRM, CISA, or CRCM. Certifications illustrate your knowledge of the industry and show your dedication to the financial industry.

Volunteer Experience/Extra Curricular Activities

Many banks and credit unions have heavy community involvement. According to Her Campus Media, “Volunteerism can equip a student with ‘hard’ and ‘soft’ skills including technical, communication, teamwork, problem-solving and leadership, to name a few. Most people who volunteer are devoted to a cause and can easily convey their enthusiasm via a natural narrative.” These qualities that you’ve gained from volunteering—communication, teamwork, problem-solving, leadership and enthusiasm—are superb skills to have listed on your resume, cover letter, and other applications materials.

Specific Accomplishments

Accomplishments are important because it illustrates your contributions to your previous employer. When you’re detailing your accomplishments, make sure to be complete and precise in what you say. Use exact numbers or any sort of quantitative result when you can. These statements are very impactful as it shows the potential value you may add to the institution you’re applying with.

Banks and Credit Unions, obviously, are driven by numbers, most of the time. Whether it’s a dollar amount, a percentage of growth, money saved or decrease in error ratio, these are all great ways to make your resume stand out.

job market

How to Capture Talent in The Commercial Lending & SBA Space

job market

The recruiting market in the Commercial Lending/SBA space is on fire. Banks are desperately scrambling to capitalize on the small business growth in the market. Every bank and credit union today is looking for growth in this space. If you want to capture top talent for your financial institution, you must be willing to be flexible with your hiring process and budget.

Have an efficient hiring process

Make sure you are prepared to interview and hire that talent in very little time. With the job market so hot, the “A-players” are off the market in as little as five days. For example, I recently placed a $20 million SBA BDO candidate to a bank and they went through the interviewing process and hiring process all within four days.

My client knew that if they didn’t move quickly, they would have to compete with other institutions, and as a result, could be faced with a bidding war. And when that happens, the candidate often decides to not accept the offer. In other words, you have to be confident in the criteria you are looking for in a candidate.

You have to pay to play

Talent today costs money, and sometimes BIG money. Candidates that are producing big results and really moving the bottom line are being highly compensated. That means you need to be ready to fork over the top end of your salary range, and sometimes, even expanding that range. Because of our candidate-driven market, banks and credit unions are going to have critical job openings open longer if they aren’t willing to make some adjustments. As a result, traditional recruiting methods aren’t as effective. To keep the top talent interested, you have to be willing to pay them well.

We work with our clients to help them move that needle as needed. However, with a top-tier recruiter, they can still find those hidden gems. The best candidates are becoming harder to find, but they are not completely out of reach. Pay for performance is a trend we are seeing more and more, and it doesn’t look like it’s going away anytime soon.

To hire (and retain) the talent your organization so gravely needs, it may be time to work with a professional. The best candidates are the ones that are not even on the market. If you want the best candidates that are ready to make an impact on your company, it may be time to partner with a recruiter that specializes in your field.

Let’s work together

digital age

How the Digital Age is Influencing Financial Institutions

digital age

In the world of IT, data security is a big deal. What is interesting is that according to a recent article in Forbes, financial institutions have established a comfort level with customers, more so than many other industries. Of course, we have been sharing sensitive information with our bank since we opened our first savings account.

However, we are starting to understand the value of our information and asking for more benefits in relation to the data we share. Better interest rates, a wider range of loan offers, even simple recognition demands are expected.

The Digital Age is demanding more integration

Millennials are considered more “tech-savvy” and growing up in the Digital Age is encouraging them to demand more innovative financial services. They want more convenience; they want more integration and features from their phones, or any device, that they carry.

However, it isn’t as simple as you may imagine. The younger generation wants to know that their data is safe, and when there is a problem, they want someone in-person to fix it and fix it now. Mobile features are important, but customers of all ages and demographics still want human interaction.

For example, a bank may offer multiple products and services, depending on the type and size of a business. Consumers are capable of searching a website or mobile app to access these offerings; however, this will never replace the human touch that builds trust and security. Technology is wonderful with training and complicated plumbing without. The physical banking branches thrive in a high tech and high touch environment.

How data is shaping financial institutions

The ability of consumers to trust their bank with personal data protection is what drives loyalty in the financial industry. Security, responsive service, and easy access to the branch (and its features) are important to every generation. In fact, according to the 2018 Cybersecurity Market Report, banks are doubling their spending budgets to the tune of hundreds of millions of dollars. And a lot of this budget is going towards fintech candidates.

Sharing data benefits consumers, but we must remember that it also can leave us vulnerable if not properly protected. Banks continue to grapple with these challenges and look to solve these issues by better understanding the data we share. This creates opportunities and new jobs in many areas that keep expanding as fast as technology itself. There’s a huge shortage of manpower with a lack of people with the necessary skillsets. This is changing the recruitment process of financial institutions, forcing them to rely on recruitment headhunting to find the talent needed to improve integration and ensure consumer data protection.

First Tech Credit Union

The Coolest Banking Centers Around The World

The Banking Industry has been making waves in the digital world. This shift in focus and new target market has given them the opportunity to transform their banking centers into digital-friendly hubs that appeal to technology-dependent customers. These customers want flexibility, fast service, and innovative ways of working and digital friendly spaces.

Here are some of the coolest banking centers in the world.

Standard Bank- South Africa

coolest banking centers

Source: BusinessTech

This institution created the “Playroom” in hopes that this hub will allow them to get a better sense of data and market testing strategy. The Playroom is basically a lab to research and test in a controlled environment before releasing new solutions into the market. The Mastermind behind this project is Vuyo Mpako, head of innovation and channel design at Standard Bank. “The centre will be at the forefront of solutions testing to make the customers’ banking experience simpler and more seamless. The ultimate aim will be enabling convenient, 24-hour banking from any location.”

Macquarie’s – Australia

This investment bank headquarters in Australia aims to enhance a more collaborative and creative approach amongst its employees. This building includes a library, a dining room, individual pods for workers, plazas, and even a tree house! It’s a 330,000 square foot building that the bank has dubbed as a “workplace of the future.”

In fact, employees don’t have designated workstations or cubicles. Rather they’re given an “anchor point” — their designated “home base” with a locker and storage. This allows employees to choose how and where they work every single day!

C1 Bank- South Florida

The bank designed the branch to show off the art and design galleries around it. Instead of the standard desks that most banks have, this location offers ‘pods’ that are similar to restaurant booths with round tables. Each pod has a unique design and instead of using computers, the bankers use iPads.

After hours, the inside of the branch glows in neon green, which makes the building stand out in the evening! C1 Bank is currently developing three more branches in South Florida and each are expected to continue with this unique design.

First Tech Federal Credit Union- Bellevue

Instead of traditional desks, First Tech Federal Credit Union has comfortability in mind. This allows bankers and customers the flexibility to sit on the couch and talk about transactions. This allows the credit union to be more consultative with a ‘Central Relationship Center.’ There are also private member suites for more complex, private conversations. The financial representatives are able to facilitate this more casual setting with their mobile technology right at hand.

“To be a true partner, we believe we must transform from a servicing environment into a stronger consultative environment where we’re collaborating with our members, determining their needs and recommending solutions that help them move forward financially.” Noted Stephen Owen who is First Tech’s Chief Retail and Marketing Officer.

Umpqua Bank- Portland

Umpqua Bank

Source: Medium

For starters, each Umpqua branch offers a phone that dials directly to the CEO, Ray Davis. Each branch offers two conference rooms, available to reserve to the public free of charge. Rather than aggressively trying to sell their products, Umpqua tries to create an environment that people would like to go and visit. Tellers hand out chocolate to customers whenever they make an account withdrawal. Financial reps are equipped with iPads, outdoor seating, loaner bikes, and interactive touch screens.

A new age in banking

The banking industry seems to be in the midst of a digital shift. As the years go on, we are going to see major changes in how banks and financial institutions are going to shift their focus and make it easier for their customers to interact with one another and the way they bank.

Are Banking Careers Actually Over?

The times are changing, and so too is the way we use certain services. For example, malls are seeing far less traffic than ever due to an increasing number of online retailers. Why waste gas and time heading to a few different shops when you can get the same thing over the computer? The world is changing.

The same can be said in the banking industry. From personal to investment banking, online applications and websites now make it easier than ever to bank from the comfort of your own home.

With all of the advancements in technology, the future of banking careers is being put into question – and probably for good reason. We’re here to give you both sides of the argument, as well as our expert advice so that you know what to expect for the future of the banking industry.

Some say they are over

And maybe they’re right. After all, research shows that traffic in bank branches will decrease 36% between 2017 and 2022. That’s an average of 6% per year, which is a significant decrease that will no doubt be noticed by branch managers. It could be possible that the decrease in customers will lead to a decreased demand for bankers, thus minimizing careers.

There’s also the fact that many banking jobs require less-skilled workers, which is why automation is inevitable. Many experts say that there are too many steps in the chain, deeming some jobs unnecessary. Instead of a diverse branch full of experts in different banking sectors, the future of bank branches, according to some, might see only a handful of experts who are technologically skilled.

Some say they aren’t over

And there’s a great chance that they’re right. After all, banks are one of the most important institutions in the world. It would make sense that jobs within these established institutions aren’t going anywhere. From tellers to loan officers to regulators, there are quite a few banking careers that can’t be automated.

Even with automation, many experts think jobs will only increase, despite the inevitable decrease in branch traffic. Banks can afford to bring on technologically-savvy employees to improve their applications and automation process, all while keeping those employees who butter their bread working in the branch.

Here’s what we say

I talked to the recruiters on our banking team, and they believe that the future of banking will continue to produce great careers.

Krista, who recruits in the Western Washington region, stated that “people trust people more than they trust automation.” When things go array, or when an important decision needs to be made, customers want to talk in-person. They don’t want to talk to a machine or find the answers online. When it comes to their money, people want to trust their information.

Mike, who recruits in Texas, also believes that banking careers will advance. He stated, “Whenever there’s change there’s always growth.” Regardless of automation, change will bring growth and new opportunity for a successful career in the banking industry.

Tracy, a recruiter in California, believes the same thing that Krista does. “People like to deal with people. Sure, there might be situations where automation is necessary. However, when it comes to trusting a bank with millions of dollars, you’re going to want to look someone in the eye and know your money is safe with them.” Automation may help, but people matter more.

With so many factors playing into the future on banking jobs, we can’t fully predict what will happen. What we can predict, however, is that when it comes to trust, human interaction is much more valuable than technology. Until that changes, banking careers should continue to be successful.