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Five ways for your organisation to keep pace with the Fintech revolution

Compensation Strategy & Design|Future of Work|Talent|Total Rewards
Beyond Data

By Edward Hsu | October 14, 2019

Fintech trailblazers continue to the lead the way in the future of work – here’s what they do best.

The convergence of technology and better financial management is helping to drive the fast growth of the Fintech revolution. An increasing number of financial institutions are adopting technological innovations at the very core of their business activities to support their financial services and bring added value to clients. Mobile banking applications, all-digital banking, robo-advisors, crowdfunding and cryptocurrencies are just some Fintech innovations that are disrupting the financial sector. In this new environment, having an edge no longer relies on economies of scale but on having the best digital capability. Organisations must step up their digital maturity in order to stay in the Fintech race.

According to our 2019 Pathways to Digital Enablement Survey, most organisations today fall into one of four categories of digital maturity -- emerging, advancing, leading or transformative. We have also identified a category within the Fintech sector labelled ‘Born-as Fintech’ (BAF). As with digitally transformative organisations, BAF companies are well-positioned to succeed because they have already aligned or fully integrated their digital and business strategies. Most Fintech start-ups fall into this category. These organisations are much closer to realising their digital ambitions and translating it into promising financial performance.1 Transformative organisations are more than two and a half times as likely as emerging organisations to report being high performing compared to their peers.

How can your organisation keep up? We have identified these five areas where Fintech frontrunners excel – to serve as important milestones to work towards.

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Five ways for your organisation to keep pace with the Fintech revolution
  1. Drive growth with a well-defined digital strategy
  2. Digital strategy is the foundation to drive digital transformation. For most Fintech leaders, it is critical to have a diverse workforce and the right digital talent to accelerate their organisation’s journey to digital maturity. Having a well-defined digital strategy will help leaders and HR professionals prepare their organisation to be a favourable and attractive workplace for digital talent.3

    Even well-established, large banks and insurance companies must have the courage to go back to the drawing board and reassess business strategy if they wish to venture into Fintech. They need to be ready to refresh their human capital strategy and make sure it aligns with the digital business strategy, and to transform the organisation structure.

  3. Differentiate pay for digital skills
  4. Fintech leaders employ innovative rewards strategies that are simple and flexible. Employers need to understand the unique needs and values of their digital talent. This requires going beyond a ‘one size fits all’ approach to pay and rewards. By taking into account the behavioural changes and varying needs of the workforce, employers can adopt a personalised and differentiated delivery for their pay and rewards.

    BAF organisations tend to offer double the salary for in-demand skills, such as application development, compared with other companies within the Financial Services and High Tech sectors.4 5 Most of them also throw in attractive perquisites, stocks and other incentives. They are mostly driven by high-stakes but short-term goals given their business size.

    For the organisations striving to catch up in the Fintech race, it may be tempting to simply compete with cash. However, it’s crucial to be well-informed on the appropriate skill premiums for the digital skills you need, in order to avoid overshooting human capital costs and to stay within salary budgets. Organisations can leverage a skill-based interactive analytics platform like SkillsVue to see the impact of skills on pay. SkillsVue analyses real-time skills data, which can help compensation professionals to focus on skills instead of roles and create a truly differentiated pay program.

  5. Revolutionise the way work is done
  6. The Fintech revolution has brought new ways to deliver financial services and products to its consumers, and it continues to evolve as competition intensifies. Revolutionary innovations like mobile payments, mobile banking and cryptocurrency have changed the way consumers handle their finances. These changes in service delivery and consumer attitudes require a new set of workforce skills. In effect, new ways of working have emerged. This has created a need for financial services organisations to rethink their approach to getting work done. This may involve leveraging different types of resources including automation, artificial intelligence (AI), and contingent workers – in addition to regular full-time employees.

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    Organisations are making more use of contingent talent

    Twenty-five percent of organisations say they are making more use of contingent talent today, and this trend could increase to 51% in the next three years.1 In the Asia Pacific region, all Fintech organisations are using contingent talent, which today comprises about a fifth of their employee population. In general, transformative organisations are actively integrating highly skilled contingent talent into work teams. Moreover, 65% of transformative organisations across the world are already looking into combining human talent and automation.

  7. Establish a culture of innovation and talent growth
  8. Culture plays a huge role in employee experience and engagement. For digital talent in Fintech organisations, it’s important to have an innovative culture that will provide them an environment to collaborate, be creative and innovate on their own with few restrictions. This will help them to explore, grow and tackle fresh challenges. This can also be done by making sure they constantly have interesting and engaging assignments.

    Organisations should also focus on strengthening their learning and development (L&D) initiatives. Digital talent highly value L&D opportunities. In fact, after competitive pay, L&D is the second most important differentiator for digital talent globally.2 In China particularly, BAF organisations rank L&D as the most effective attraction and retention tool. These findings show that organisations need to invest in upgrading the competencies of their talent pool, not only to retain them but also to harness their knowledge and skills to the fullest potential.

  9. Strengthen your employer brand and talent value proposition
  10. Over half of financial organisations worldwide find that not being recognised as a digital brand is their top obstacle in attracting digital talent.2 One of the missing elements here is a strong talent value proposition that is integral to developing digital maturity. Many BAF companies consider inclusion and diversity and gender equality as fundamental to their business and organisational structure. They know that addressing these matters thoughtfully and sincerely can build a connection with employees, create a sense of pride and purpose, help to drive engagement, and support employee wellbeing.6

    Organisations in the Financial Services sector may benefit from rebranding themselves first as innovation hubs for new Fintech solutions. Digital talent are always on the lookout for places where they can use their skills and grow professionally. Through this approach, financial organisations could have new opportunities to highlight their role in economic growth, and find more ways to empower small and big businesses. This in turn can create a socially relevant space for digital talent, who are eager to have meaningful work.


Knowing where you stand is important. Our Fintech Compensation Survey is designed to allow organisations to compare their compensation programs with those of their relevant peers in the Fintech sector. Find out more about the powerful solutions, compensation data and insights that can help drive digital transformation in your organisation at wtwdataservices.com.


Author

Edward Hsu
Leader, Data Services and Compensation Software – Asia Pacific

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