Transitioning to a New World of Work in Financial Institutions: Key Takeaways

AIBP Insights is a series of discussions held online which brings together a focus group of ASEAN stakeholders to discuss topics related to enterprise technology adoption in the region.

While the COVID-19 pandemic has accelerated digital technology adoption, it has also highlighted the importance of developing digital infrastructure as well as digital skills and literacy. With the introduction of codeless design configuration, financial institutions can tap digitally fluent individuals within the organisation to create, test, and refine new automation capabilities and experiences as technology moves beyond the hands of traditional programmers.

Work in financial institutions is changing at such a fast rate that classic professions increasingly demand digital literacy. As highlighted in AIBP's 2021 ASEAN Enterprise Innovation Survey, with 50% of respondents from financial institutions prioritising workforce resilience and upskilling talent (you may view more findings in our 2021/22 ASEAN Enterprise Innovation Market Overview here).

Earlier today, in our discussion on Transitioning to a New World of Work in Financial Institutions, our panelists from Prudential Financial, Zurich Insurance, Deloitte Consulting, and Hitachi Asia, came together to discuss and share their perspectives on the hybrid working model, overcoming the ‘The Great Resignation’ and building an agile organisation in the ASEAN financial institutions landscape.

The Shift Towards Hybrid Model in Financial Institutions

According to a March 2021 Harvard Business School study, 81% of all workers do not want to return to full-time work. Three out of every five people say they would enjoy a hybrid office-home lifestyle, more than a quarter say they would prefer to work entirely remotely, and only 18% say they wouldn't mind returning to work full time.

Prior to the pandemic, a small percentage of Zurich Insurance's staff was already working remotely, according to Benny Jioe, Head of Digital Transformation. They had a head start, so when the pandemic struck, all they had to do was replicate what they had initially to their entire workforce.

Furthermore, Pak Benny added that financial institutions will require desk and room booking technology. Zurich Insurance recently implemented a mobile app that simplifies the employee's experience in the new environment, and change management to assist employees in navigating their new workplaces. 

However, the work-from-home arrangement has not been without its challenges, particularly in the financial sector. Fraudulent activity and cybersecurity attacks are on the rise, with the pandemic heightening risk and vulnerability. According to Tetsuya Nakamura, Head of JP1, Digital Solution Platform, ICT Solution Business, Hitachi Asia, financial employees, in particular, are at higher risk, due to the high sensitivity of transactional and confidential information handled on a daily basis. Those who work from home are more vulnerable to phishing and other technological breaches. Nakamura-san also stated that they have been assisting various financial institutions in navigating the early stages of transition to online remote working, as well as in the present, an environment where hybridisation is critical.

Cybersecurity and Compliance Challenges have Financial Institutions Carefully Considering Home versus Office

The financial sector is accustomed to having their employees work in a controlled environment, and regulation is a greater factor for them than for almost any other office intensive user. These compliance and security issues are critical considerations for financial institutions when deciding their working arrangements. 

For Vincent Wang, Vice President of Digital Product Management (APAC), Prudential Financial, because he primarily works with developers who work on highly confidential projects in Brazil, China, and India, the laptops must be issued by the global team, which may take up to 5 days. He did, however, mention that one of the advantages of working remotely is the ability to accommodate team members in different time zones.

Clarissa Turner, Human Capital Director & Malaysia Workforce Consulting Lead, Deloitte SEA, added that many collaboration tools have been around for a long time but have not been used - they only came to light due to the exploding demand for these tools. The most significant impediment is obtaining the necessary and timely management approvals.

Overcoming ‘The Great Resignation’

According to a study conducted by The Straits Times in 2022, the pandemic's uncertainties and disruptions have caused many people to re-evaluate their priorities, with some taking the decisive step of quitting their jobs in pursuit of a better quality of life.

When discussing this topic, Vincent shared a few points to consider. To begin, communication is critical - 30 minute daily calls with key members to discuss potential roadblocks and problem solving to ensure that projects move forward. Second, their internal culture emphasises accountability and respect, with employees accountable for monitoring their own performance and leaders mindful of everyone's time. Third, they are working on servant leadership, with their leadership team focusing primarily on the growth and well-being of their employees. Vincent and his team are on an ongoing journey; nothing is certain, but these are some of the measures they have in place to experiment and pivot along the way.

Clarissa went on to say that if you hire intellectually curious people who are naturally inquisitive and eager to learn new things, there isn't much you can do as an organisation except give them space. Vincent agreed, adding that learning should be initiated by employees rather than driven by the leadership team, and that learning should not be associated with higher pay or career advancement.

The Future Outlook

Clarissa concluded the discussion by stating that, fundamentally, starting with the leadership mindset is critical, as is training leaders to become more entrepreneurial. It is also imperative to be agile and to be able to easily move people between roles. 

The financial sector has adapted well to the COVID-19 pandemic's rapid and large-scale shift to remote working. The pandemic situation is evolving, with countries experiencing resurgences of cases and the emergence of new virus variants. As they transition to a new way of working, financial institutions should remain vigilant and alert to developments and any new remote working risks that may emerge.

With that, we look forward to continuing our discussion on The Shift Towards Phygital in Financial Institutions on 3 March (Thursday) and Building Tomorrow's Digital-First Bank: Turning the Tide on Disruption on 21 April (Thursday). Do reach out if you wish to join us, or if there are topics in digitalisation you would like to hear more of!