How to survive banking’s biggest threat: staffing
There's a growing realization among banks and credit unions that the new competitive environment requires incumbents to transform their recruiting and retention strategies to challenge fintechs for the staffs of the future.
To compete with upstart fintechs and “megafintechs,” like PayPal, traditional institutions need to morph, as one analyst says, “to become tech companies that provide banking services.” Key to their success will be to identify new critical skills, expand potential recruitment areas, and change the workforce culture. Otherwise, fintechs with their revolutionary approach to staffing will leave traditional financial institutions in the dust.
“Since digital finance is rapidly growing, new roles are being created whereas others are becoming obsolete,” says the Centre for Finance, Technology and Entrepreneurship in a massive report. “This requires a renewed awareness of opportunities borne out of fintech growth for job seekers [and] hiring organizations.”
The ability to attract qualified talent has become a top concern for both bank and credit union executives. A survey by Cornerstone Advisors finds that 67% of banks and 63% of credit unions said this in early 2022, up from 19% for both groups the year before. The driving force behind this is the accelerated pace toward digital transformation of the industry, which requires remote access, instant decisions, personalized attention, and multi-device convenience.
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