Digital disruption a flexible workforce is essential to fight back - Viewpoint - careers advice blog Viewpoint careers advice blog

Digital disruption a flexible workforce is essential to fight back - Viewpoint - careers advice blog The changes resulting from the growth of digital and mobile technologies witnessed over the past five years have had a far greater impact on the economy and society as a whole than those of the past three decades. To cope with this fast-changing environment, financial services companies should look at other sectors and adapt by developing a more flexible recruitment policy and workforce. Digitalise or decline The so-called “digital disruption” we are witnessing today will bring in many business opportunities, but is also a threat that every company should be taking seriously. The figures speak for themselves: since 2000, 52% of Fortune 500 companies have either gone bankrupt, been acquired or ceased according to Capgemini Consulting, and according to MIT 32% of company’s revenue will be at risk by 2020. Companies like Airbnb or Uber own no assets yet they are now some of the biggest players in their respective fields of hospitality and cabbing. Think of self-driving cars for instance, they are being developed by the IT industry not by the traditional car industry. Every rule is being re-written and no sector is immune. Not least the financial sector, where innovation is also driven mainly from the outside. New, collaborative business models like crowd-funding and innovative technologies such as blockchains and crypto-currencies are spurring the growth of Fintech. Meanwhile, the attitude of the public towards digital currencies has changed, with some European countries even wondering if it makes sense to become cashless societies, like Sweden. The country’s central bank, Riksbank, said cash transactions had barely reached 2% last year. This is fast becoming the new normal for the youngest generations. Wanted: out-of-the-box thinking Twenty years ago, before the advent of digital media, it was more difficult for people to find information. Companies grew profits based on the fact that they had access to vital information that the general public or their customers did not. That was how they could add value. However, now, with the Internet and social media, customers can do everything themselves. Not only do they have the means to do so, they also now have the knowledge required. That is having an increasing impact on the profitability of FS companies going forward. In this context, I believe companies have to be prepared to think more and more out of the box, not only in their business models but also in terms of who they recruit. They need to adjust to the market by changing their attitude to their employees, by providing more flexible conditions, letting them innovate and explore more and be generally less compartmentalised. Just like the world’s largest tech companies Apple, Google or Facebook financial services companies also have to learn to develop an attractive brand to attract the best candidates. Banks need to recruit more agile minds We are already observing a trend of companies looking to recruit individuals with a less traditional profile than in the past. This echoes what happened decades ago in the consulting industry, when it started to hire people with degrees in philosophy, in history, geography etc. In financial services now, rather than a background in business or maths, companies are hiring candidates with totally different skills. For example, think of a candidate who has studied social sciences, his or her approach to the customer is a totally different one to that of a mathematician. This could become very valuable for organisations as the customer is now at the centre of their offer and not just a passive receiver. What really matters is that companies hire the best people and rethink their recruitment strategy: is it so important that the candidate has a finance degree? Maybe what is needed is a new mind-set, fresh opinions and a totally new approach to things, with candidates ready to learn on the job. Candidates,  meanwhile, especially students finishing their degree, need to realise that their studies are just an entry, a pass to the world of work, and throughout their career they will have to learn new skills. Agility is the key word here. I hope you found this content useful. You may also be interested in these similar blogs: Artificial Intelligence: a « robolution » in financial services From panama with(out) love: privacy and data security in financial services Robust returns in residential development and student accommodation The café generation: how tech culture is spreading to financial services Why modular financial banking means flexible candidates Are budgets worth the effort? Share this blog: