The BFSI Reboot: Business Success Demands Amalgamation Of Cognitive And Tech Skills
Digital disruption is redefining industries and forcing businesses to change the way they operate. Artificial Intelligence has been at the centre of the technological revolution for a majority of industries. The BFSI sector has been comparatively ‘change-resistant', but has seen a significant rate of tech adoption in the past two decades.
Harnessing cognitive intelligence and developed artificial technology brings an advantage to the traditionally functioning BFSI companies, and helps them stand strong in the competition posed by the new-age FinTech players. As machine learning, robotics and AI brings the power of advanced data analytics, the amalgamation of human intellect and rational decision-making can not be overtaken by machines in any sector.
Recognise and Synergise: Remarkable Skillset Shift In BFSI Sector
Talking about identifying, roping in talent and cultivating aspects core to organisational culture, Subhashish Banerji, Senior VP – HR, ICICI Prudential Life Insurance said, “The challenge is to create a shared view between the top leadership team in regards to the talent aspects i.e. hiring, risk management, growth mindset, to carve out the future growth directional roadmap of the organisation.”
According to the industry leaders, the future would be ‘phygital’ in nature - both hi-tech and hi-touch will co-exist, hyper-personalisation will come into play specifically in higher-order job roles. However, growth perspective building, decision making, core leadership groups, crisis management, and empathetic reasoning will surely benefit from enhanced technology, but human intellect will remain on top of all.
Will a bot render you jobless in the times to come? While highlighting the increasing demand for a swift transition to work with technology and machines, Archana Chadha, Head HR, HSBC Bank insisted on keeping the upskilling in the centre, stating, “I believe future is here and we have to get ready for it. AI, ML, and analytics are all around us and it is enhancing human capability in managing risk better at the core.”
Referring to recent research and data points, Nilanjan Kar, Chief Revenue Officer, Harappa said, “I believe that cognitive and behavioural skill set is an important layer on top of all the learnings from technical and functional skill-building. Harappa as a learning platform enables people to drive the change, delivering deep outcomes, and doing the same at a larger scale.”
Initially, there was a reluctance in adopting large-scale technological revolution, but it is most important to keep a check on and fulfil the demands of end-users, and not get trapped. Seema Singh, CHRO, India Post Payment Bank said, “I believe in participative HR policies. Leaders and managers have to prioritise building a culture where employees could actually get a sense of recognition that they are an asset to their organisations. Upskilling shall be at the focus in order to train ‘Dakiya to banker’, to be able to ace in today’s world of unprecedented changes.”
Emerging Trends Of Cognitive Capabilities’ Role Across Sectors
With changing dynamics of business effectiveness, there is a certain shift in employee expectations and customer demands in the BFSI sector. Considering the paradigm shift, leaders are realising that everything cannot be operated with artificial bots. Hence, human intervention is significant to achieve various organisational goals.
Acknowledging the complexity and uncertainty of the recent times, Sidharth Verma, Director Enterprise Partnerships, Harappa mentioned, “BFSI players would require to conquer the challenges in the physical space as well as on the virtual platforms. Learning and development have always been critical functions to grow for any organisation and will always be. Innovative design thinking, problem-solving, collaboration will be the essence, no matter what technology comes in.” Additionally, Harappa’s Verma presented research findings on how cognitive skill-building is even more critical in today’s times. Here are the key points:
● High performing leaders, first-time managers, young talent need the elements of these five habits framework, with competencies to think, solve, communicate, to collaborate, and lead.
● Specifically, in the BFSI sector, 10-20 per cent of individual learners come forward to learn structured problem solving and precise writing, whereas 30-40 per cent of learners are inclined to learn more about detailed orientation and continuous growth mindset.
● Around 60-70 per cent of mid-level managers are learning about how to engage respectfully. Maximum leadership role players want to learn how to influence the audience, be tactful, present compellingly and more.
● Skills witnessing a rise in demand are strategic thinking and innovation, agility and adaptability, analytical decision making, strong CXO networking and more.
Taking the discussion towards L&D strategy building, BW Businessworld’s Ghaswalla asked how to maximise the learning blend of technical and cognitive skills-based training. Carmistha Mitra, Chief Learning Officer, Axis Bank replied, “Top-level crisis management would demand a frictionless strategy which would require a combination of domain-specific ‘technical skills', business-specific ‘cognitive skills’ and interactive specific ‘synergising skills’ to achieve the mark of success.”
What Is The Way Forward For BFSI Sector?
On integrating cognitive intelligence in the current talent pool, Jayashubha K, Chief People Officer, TVS Credit Services said, “We cannot hold return on investment (ROI) against every training program conducted. It is important to discover ‘what is required when’ and realise the drastic shift in the process of the talent pipeline, from recruiting to the peer feedback in terms of learning programs.”
These valuable insights were presented at a virtual roundtable discussion organised by BW Businessworld in association with Harappa, seamlessly moderated by the session chair Hoshie Ghaswalla, CEO, BW Engage - BW Businessworld. Agreeing with the esteemed panellists, Ghaswalla said, “I believe that AI is favourable for transactions and steady-state of business, but to scale up the business, correct human intervention and cognitive skills in the right place are required.”
IIFL Home Finance’s Head HR, Rashmi Priya agreed and added, “We cannot assess the pre and post levels of cognitive learning as these are long term investments for the organisation. Looking at the macro picture, leaders have to build cross-culture trust and inclusivity that further encourages the workforce to build the informal networks.”
Suggesting a strategy for enhancing employees’ capability for problem-solving and the process of skill-building for seamless crisis management at companies, Ashish Mittal, Head of People Function - HR, Aviva India said, “Problems push leaders across levels to innovate to draw out solutions. We want to inculcate the ‘mindset of frugality’ so that people can look at resources to get the optimum outcome.” Complimenting employees’ versatile thinking, Mittal also said, “Instead of interesting, start trusting that the workforce can solve issues. Give control to the people.”
In present times or the future, it is almost impossible to boycott the use of technology, AI, ML or data analytics across sectors, and BFSI is no exception. AI will not only empower but become an integral part of banking operations. With a futuristic vision, team managers and top tier leaders can enable people to realise that inter-collaboration is a part of the individual's recognition process. The recent radical evolution has forced leaders to understand and adapt to the new expectations of the business, work and workforce. Learning and upskilling programs are required to be hyper-personalised, and comprehensive assessment would support teams to get on the right track. It is hence extremely critical to acknowledge the fact that cognitive is an essential aspect for peak performance and business excellence.
