Mercer | https://www.mercer.us | Mercer Leadership Interviews Nigel Carter Financial Services Vertical Leader Multinational Client Group
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Nigel Carter of Mercer’s Multinational Client Groups breaks down what the Financial Services Industry needs to do organizationally and technologically to handle the changes that here now and will be in the near future. Are you ready for the Future of Work and the Workforce For the Future? Find out what you need to know.
Transcript: The Financial Services Industry is undergoing a massive change due to the impact of technology. Things like mobile banking which we are all very familiar with, is almost becoming old technology. New things coming in like blockchain, Internet of things, robo advisory, all these wonderful things. That’s putting a huge strain on financial services organizations because they don’t have the right organizational structures to adapt to new business requirements. They don’t have the necessarily right type of talent – they’re all looking for ecommerce talent, cyber security. a whole bunch new jobs and roles are being created. Companies in the financial services sector really need to take a long hard look at their longer term strategic planning with regards to the workforce. Do they have the right talent management strategies in place? Are there attraction strategies that are bringing in the right sort of talent? Where are they going to get these people from, for all these new jobs that will exist in 5-10 years’ time? There’s also the question of the organizational structure. Technology companies tend to be very nimble, agile. These are words that you normally would not associate with a bank or insurance company. The challenge for these companies is to think about is what is it that’s in the DNA of those tech companies that they can adopt in terms of culture, organizational design, incentives, reward, employee engagement – which of these can they adopt to change their business model effectively. The evolution of the financial services industry is very interesting right now. The next 5-10 years we’re going to see unprecedented changes in both business models and the types of jobs that will exist in the industry. For example, completely new roles will appear like cyber security engineer, data analyst strategist, things like that. In many ways, the financial industry is quite unprepared for these. When we’ve been out to talk to our financial service clients and we tell that 40-50% of current skills will be totally irrelevant in 5-10 years’ time, they take a deep breath and are quite shocked by the numbers. The industry needs a wake up call because the changes that are coming in terms of the workforce and requirements of the workforce are pretty substantial.