Watching & Waiting: What’s Next for Banking?

Watching & Waiting: What’s Next for Banking?

If there’s one word to describe the past few months in the finance sector, it’s tumultuous.

Combine sudden bank collapses and acquisitions in the US and EU with inflation and a rise in interest rates, banking is under intense scrutiny.

Industry leaders and talent have been nervously awaiting what could be next, and how it might impact them. Will the events of the past several months (even years) cause greater disruption across the sector? How will the industry adapt and evolve to meet demands? And what will it all mean for its talent?

Like most other sectors, the future of banking boils down to its ability to learn, adapt, and adopt. It may not sound like a revolutionary concept, but for a historically unchanged industry, advancing its operations is a significant step, and one in the right direction.

Here’s why digitisation and communications are the key to a thriving, trustworthy industry – and how a new talent model could drastically improve businesses facing uncertainty.

A shifting sector

Often associated with conventionalism, complexities, and behind-closed-doors decision-making, banking comes with its cliches. But while these were once perceived as stable and dependable, rising distrust and scepticism in more recent years has impacted every corner of the industry.

Enter the world of fintech.

The success of fintech is a walking, talking example of how money management for businesses and consumers has become more immediate, more accessible, and more digitised. And in many senses, it contradicts everything consumers associate with traditional banking.

Digitising the financial world combined the want for greater autonomy with the ability to provide enhanced user experience to create a more satisfied audience. It’s helped establish a generation of businesses and consumers who not only feel more informed and in control of their funds, but trust and value their providers because of it.

But if fintech can learn from banking, then banking can learn from fintech.

Instead of giving them a wide berth, traditional banks and financial organisations will need to absorb technology trends set by fintech brands to effectively modernise their operations, reflect market needs and wants, and thrive in a changing landscape. Strategic implementation of data insights and AI can radically improve UX and service support, and provide the personalisation and transparency modern audiences are calling for.

The role of communications

Prescriptive messaging, minimalistic information, and industry jargon has been the modus operandi for banking’s comms. But for today’s increasingly aware audience, the demand for transparent, informative, and socially-driven finance is on the rise. And to meet this demand, organisations must amplify their communications.

Pre-established crisis comms and proactive PR will need to eclipse the status quo and reactive messaging. Comms professionals need to become a staple in every C-Suite boardroom to advise and guide pressing matters – not just respond after the fact.

And it isn’t all about combating negative press. Greater consistency and more holistic communications strategies will help build positive association for banking again, not only amongst businesses and established consumers, but for a highly scrutinous younger generation of users.

Importantly, effective communications strategies can proactively relay crucial initiatives for financial organisations, helping control the narrative and close the information gap around ESG, diversity and inclusion, and charitable efforts.

Not something to be underestimated.

A new landscape requires a new talent model

For decades, the financial world has been under the most scrutiny compared to other industries. It remains the most regulated, governed and hotly contested sector, despite undergoing huge changes in recent years. Does banking to the majority, especially younger audiences, still seem to be firmly rooted in ‘traditional’ practices and principles – particularly when it comes to its communications?

If there’s an equation for the financial industry to steady itself, then talent is its central factor. And just like many other industries facing change, finance’s talent needs are evolving.

Quality candidates will come from diverse backgrounds with diverse skillsets. Banking will need professionals with experience in media relations, crisis comms, and technical marketing just as much as it’ll need experienced accountants and managers.

Importantly, it will hinge on driven, determined professionals who are ready to not only tackle PR crises, but steer positive action and messaging, and revolutionise how we view banking. Professionals who can not only communicate with long-time customers, but an emerging generation of informed users.

Author: Rose Bertie, Consultant