Innovating for tomorrow: Key takeaways from our building society event
Forbes Project Solutions, A Korn Ferry Company
EXPERT SOLUTIONS FOR PROJECT DELIVERY
Client Services Director Tom Dobson shares his thoughts.
Last week, I had the privilege of speaking at our building society event, co-hosted by Forbes Project Solutions, A Korn Ferry Company and Quantum Six . It was an incredible opportunity for senior technology and operations leaders from across the industry to come together and exchange insights and ideas on transformation and continuous improvement, all while navigating the challenges posed by rapidly evolving consumer behaviour and a demanding economic landscape.
After taking some time to reflect on the event, I wanted to share with you some of the key takeaways that resonated with me.
Navigating the supplier & technology eco-system
What was evident from the first panel session was how imperative it was to make the right selection amidst the myriad of FinTech companies and technology suppliers. Many in the audience expressed the challenge of not knowing where to begin and which technology ecosystem suits their needs best.
Standing still is not an option, as the need to adapt and transform is crucial to meet the demands of tomorrow's consumers. However, the investment in technology can be overwhelming, making it essential to partner with experts who can navigate this complex landscape. John Smith from Quantum Six spoke tremendously to this point.
The power of a unified goal in transformation success
Achieving supplier harmonisation and fostering a one-team culture working toward a common goal emerged as a critical theme.
In my extensive experience with large-scale complex transformations, it's clear that effective coordination among suppliers, including vendors, delivery partners, and SIs, along with internal teams, is essential. Failure to achieve this harmony can result in duplication and disjointed solutions, ultimately hindering transformation objectives. Rita Bullivant shared remarkable success stories that emphasized the benefits of a unified approach among all suppliers.
Staying competitive in an evolving digital market
Although traditionally serving local communities, technology has expanded the horizons for building societies, reaching a broader range of customers and, consequently, increasing competition.
While local customer bases remain important, the emphasis on physical branches and personal relationships is waning in favour of speed and convenience at the tips of their fingertips.
This shift not only affects customers but also impacts talent acquisition. Building societies traditionally have opted to hire local resource. However, with the pace of technology change required to meet transformation requirements to serve customers, the required skills may not be available in local regions.
Organisations prioritising skills over the need for an in-office presence 3-4 days a week are gaining a competitive edge.
Interestingly, opinions in the room were mixed on this - with some individuals in the room feeling strongly that in order to achieve best collaboration and therefore delivery results, all employees and delivery partners should be in the office at least 2 days per week. Others argued this becomes a trade off on skills vs location and the constraints that brings.
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There’s hope despite a challenging landscape
Clearly, buildings societies, small banks and specialist lenders are facing unprecedented challenges. The current economic climate is challenging to say the least, making it difficult for lenders to offer competitive rates, whilst advantages gained by offering local communities a high touch personal service is diminishing due to changing consumer behaviour and expectations.
On top of this, the pace, complexity and cost of technology enabled-transformation can be daunting. This resulted in one question being posed to the 2nd panel: "is there any room for hope”?
The panel's answer was "yes".
Whilst macroeconomic challenges are outside of the control of lenders, opportunity lies in changes to consumer values. As discussed by the panel, research has shown that the two biggest differences in consumer patterns between Gen-Z and previous generations are: 1) Need for instant gratification and service (this won’t come as a surprise to anyone) 2) Gen-Z are putting a greater emphasis on companies with a strong ethical values and ESG principles.
And herein lies the opportunity. With large banks still recovering from a decade of reputational turmoil, there is a window of opportunity for building societies (who have in large maintained a good reputation for customer service and integrity) to capitalise and capture this customer demographic.
In summary
The current landscape may pose its challenges, but it offers opportunities for those who adapt and innovate. Building societies have a chance to shine in this environment, leveraging their strengths and values to meet the evolving needs of consumers.
Forbes Project Solutions are helping multiple UK building societies on their technology transformation journey. For more information on how we can support, get in touch!
Let's navigate these transformative times together.