Banking on Super Charged Change!

Of all industries facing explosive change throughout 2019, the financial industry has to be there at the top.

Following the well-publicised Royal Commission into the banking, superannuation and financial services industry, the industry is going to have to undergo fundamental change if it is to survive, let alone thrive, in 2020 and beyond.

Resilience is needed now more than ever.

Fallout

The fallout is already massive and exceedingly public.

There are not many people unaware that one major organisation continued to charge dead customers for life insurance despite knowing there was no longer a life left to insure. This conduct was so widespread it is estimated that compensation could touch A$1 billion.

Their profits plunged (as did many) in the aftermath of the royal commission,

Major management changes, (including head rolling), have been seen across the financial sector and many before the royal commission recommendations were even announced.

Scrutiny

The industry will be under close scrutiny from both regulators and the public. Winning back public trust will be a key objective. The need for transparency, clarity and accountability will drive extensive change. Organisations will have to reinvent themselves.

There will be extensive change across the sector and organisations will forcefully strive to stay ahead of the game and be competitive.

Changes will include (in no particular order and not limited to):

· Culture, practices and behaviours

· Customer service and experience

· Employee engagement and experience

· Simplification, transparency and clarity of products and services

· Alignment of strategy with organisational and individual performance metrics

· Legislative and regulative driven transformation

Change

The question is I have for this industry, is ‘Are you ready?’

Significant change is going to permeate every nook and cranny of these organisations. No stone will be unturned

This will require a concerted and determined effort to realise the successful people side of change.

The traditional conversation about resistance to change must be supplanted with resilience to change.

The speed and force of change that has to be undertaken will required a resilient workforce if it is desired outcomes are to be achieved.

Resilience

Resilience is not just about bouncing back. Resilience is recovering from a setback, learning from it and becoming stronger because of it.

Resilient employees say ‘Game on!’ They face constant change head on and embrace the challenges and opportunities that it brings. They have stability in the face of a crisis and recover quickly from any setbacks. Setbacks and failures are seen as learning experiences. Grit and growth mindset are core competencies.

Benefits of resilience to individuals include better physical and mental health; improved cognitive functioning; reduced stress, fatigue and burnout; and capacity to thrive in situations of high demand and ongoing pressure.

Benefits of resilience to organisations include increased profitability, productivity and engagement; lower turnover and absenteeism; competitive edge through increased innovation, experimentation and creativity

Resilient employees cope well with pressure, adversity and uncertainty. They do so because they have developed the behaviours, thoughts and actions needed.

Resilience can be learnt. Its not a trait you either have or you don't. Everyone can learn behaviours and create strategies to help increase resilience.

Obligation

Banking, superannuation and financial services have an obligation to both their customers and their employees. If they want to retain and attract customers, then they need to undertake the changes outlined in this article. They are also obliged to do that if they want to keep their employees in a job. If the organisation fails to make these changes, they will die a fast yet painful death.

The organisation also has the obligation to enable employees to be resilient in the face of change that is needed for success and prosperity.

Last word

Changes in technology and process will not save the financial industry. Changes in behaviour, beliefs and capabilities will. It is all about the people and resilience. That means everyone in the organisation, regardless of where they sit, embracing and adapting to constant change.

A program of awareness, education and development is required to build the organisational-wide capability, establish its roots and then allow it to flourish – ingrain, sustain and maintain.

“The bamboo that bends is stronger than the oak that resists.”

Are You Invested? Time to Commission a Change