Change Management in Banking Industry 

The banking industry has to deal with various types of challenges in terms of regulatory compliance, increasing customer demands, and technological development. The changing landscape plays a key role for financial institutions and banks to exploit opportunities and deal with challenges. Today, we’ll discuss change management in banking industry; its benefits, examples, and how to implement changes in the banking industry.

Implementing Change Management in Banking Industry 

Some of the main steps on how to implement change management in banking industry are as follows;

Recognizing Need for Change

The first and most critical step is to realize the need for change and take the change decision. It requires you to perform a well-detailed analysis of the driving forces that are compelling you toward change. They would be like changing customer interests and demands, regulatory requirements, and technological development.

Setting Goals

After conducting the change management analysis; you should set up clear goals and objectives for the change. It is significant to make sure that your goals and objectives are SMART (specific, measurable, achievable, relevant, and time-oriented). Whether you want to meet regulatory compliance, satisfy customer demands and expectations, or operational efficiency.

Developing Change Plan

It is highly beneficial to have a dedicated change management team; every member of the team should be a representative from various units and development. They all play different roles with different responsibilities but with the common objective of executing the proposed changes. However, change always carries risk elements, and it is significant to recognize the potential risk factors relevant to change and develop a risk reduction plan.

Executing Change

After developing a comprehensive plan, and now you should execute the change program in a controlled environment; collect feedback, and make necessary adjustments. You cannot effectively execute the changes without building the capacity and offering training to employees. It is significant to make sure that your team has the required skills and expertise to effectively implement the changes. While doing so, you should implement the changes gradually, rather than implementing it all at once.

Evaluating Progress

Evaluation and monitoring offer you a key insight into the changes that are working or not. Establishing KPIs is a great way to track the performance and growth of the change. KPIs would outline metrics relevant to employee engagement, customer satisfaction, and employee engagement.

Benefits of CM in Banking Industry 

Some of the main benefits of change management in banking industry are as follows;

  • Prepares you to think about the future and sustain your business in the long term
  • Establishes trust and confidence of customers with better and improved technology
  • Brings employees on the same page about the change program and decreases the employee resistance
  • Quickly responds to the changing market trends and adjusts their strategies to gain a competitive edge
  • Following new approaches and technological methods to achieve operational efficiency
  • Implements risk management strategies to deal with any type of challenges posed to financial institutions
  • Effectively respond to the global market and economic trends, fluctuations, and geopolitical changes
  • Offering personalized and customized customer service relevant to their high demands and expectations
  • Complying with the latest laws and regulations to make sure the banking system is up-to-date
  • Implementing the latest technological innovation to offer a better customer experience and achieve operational efficiency

Examples of Change Management in Banking Industry 

Some of the main examples of change management in banking industry are as follows;

Capital One – Agile Banking Model

Capital One implemented the agile banking model to gain a competitive edge in a rapidly changing financial banking environment. It helped Capital One gain a competitive edge, better customer engagement, and proliferating product development.

  • Executed the agile model across different business departments of the bank
  • Developed innovation labs to promote the growth of cutting-edge technology
  • Offering customer-focused solutions
  • Setting up digital channels

Standard Chartered – Global Business Services Model

Standard Chartered Bank executed the global business service model to amplify and centralize various operational functions. It helped Standard Chartered Bank to increase service delivery, achieve operational efficiency, and cost savings.

  • Integrating operational functions to decrease cost and amplify efficiency
  • Exploiting the latest technology to automate various processes and amplify operational capabilities
  • Offering training to employees to update their skills and expertise to follow the new operational model

ING – Agile Transformation Strategy

ING Bank implemented the agile transformation strategic approach to amplify flexibility and quickly respond to market changes. It helped ING Bank in amplifying organizational agility, employee satisfaction, and improving product delivery time.

  • Following the Agile model to streamline the time-to-market and decision making process
  • Empowering employees and working to take a role in the decision-making process
  • Delivering products and services based on customer preferences and feedback

Wells Fargo – Risk Management Rebuilding Model

While dealing with internal conflicts and regulatory compliance issues, Wells Fargo launched a well-detailed risk management rebuilding model. It helped Wells Fargo bank to develop a robust risk management framework, maintain its reputation, and successfully deal with regulatory compliance issues.

  • Showed commitment to rebuilding trust and confidence by addressing regulatory issues
  • Launching structural changes to amplify risk management capabilities
  • Better compliance oversight area to make sure to follow the laws and regulations

DBS Bank – Digital Transformation

DBS Bank implemented the digital transformation project to strengthen its position in the Asian digital banking market. It allowed DBS Bank to amplify its market share, higher customer satisfaction level, and achieve the status of the world’s top digital bank.

  • Better customer experience through a digital medium
  • Allocating resources for mobile banking, data analytics, and AI
  • Promoting collaboration and cultural innovation across the company

Conclusion: Change Management in Banking Industry 

After an in-depth study of change management in banking industry; we have realized that change management is highly significant for financial institutions. If you are learning about change management in financial institutions and banking industry; then you should keep in mind the abovementioned benefits, examples, and implementation steps.

References 

  1. https://www.minneapolisfed.org/article/2016/managing-change-effectively
  2. https://www.abrigo.com/blog/change-management-in-banks-and-credit-unions-a-key-to-success/
  3. https://www.ncontracts.com/nsight-blog/regulatory-change-management-at-financial-institutions/
  4. https://www.jetir.org/papers/JETIR1902484.pdf
  5. https://thefinancialbrand.com/news/bank-culture/effective-change-management-leadership-in-banking-157932/
  6. https://fintus.de/en/change-management/
  7. https://sparrks.io/en/blog/change-management-in-the-financial-industry/
  8. https://www.linkedin.com/pulse/navigating-change-strategies-successful-management-simon-puckering