The secret to a successful digital transformation in financial services? A strong innovation culture
By Emily Miller, VP EMEA, Workhuman
A wave of new technologies and AI advancements is empowering banks, insurers, and other financial institutions to streamline operations and develop new client service models. Financial services firms understand the critical need to adopt the right technologies to stay competitive, but implementing digital transformation is often met with pushback.
Oftentimes, people are resistant to change, and as a result, successful digital adoption requires creating an environment that encourages it. One thing leaders often overlook when it comes to digital transformation is whether their workplace culture is ready to support it.
Employees bear the brunt of any major digital transformation as it affects their day-to-day work. If the process is not seamless, or the technology is too complicated to use, employees may be reluctant to adopt it.
Luckily, there are simple steps FinServ organisations can take to build a culture of innovation and reduce the barriers to digitalisation.
Building an innovation culture
To ensure digital transformation are successful, financial organisations should focus on cultivating a culture of innovation.
An innovative culture gives rise to employees with a problem-solving mindset and openness to change. And when innovation is encouraged, employees tend to feel more psychological safety to experiment with new tools and processes without fear of negative repercussions.
With less fear and more buy-in, employees are less likely to resist the changes brought about by digital transformation, leading to a smoother and easier process across the organisation. But how can companies truly build a culture of innovation instead of just paying lip service to it?
The most effective way is by fostering real human connections and interactions. A company-wide recognition programme that explicitly recognises and rewards employees for the behaviours and actions that exemplify innovation – such as creativity, experimentation, and risk-taking – is a highly effective catalyst for a culture of innovation.
For instance, Citizens Bank, with more than 17,000 employees, not only ingrains colleague recognition into its culture, it ties recognition to its core values, with leaders, managers, and peers invited to show appreciation and gratitude for company values like innovative ideas and collaboration.
By providing employees with frequent feedback and authentic recognition, companies demonstrate that innovation is a priority, encouraging employees to exemplify it and in turn, reinforcing a culture that is open, creative, and innovative.
Strategies for success: from seamless integration to centralised management
In addition to fostering a culture of innovation, when implementing digital transformation initiatives, financial services firms should prioritise a number of key requirements. New tools that are user-friendly and integrate seamlessly with existing applications will minimise friction – and frustration – and enhance user experience. This helps to promote faster and more widespread adoption among employees.
Features such as integrations with existing messaging apps and an intuitive admin interface can ensure a smoother transition and greater user acceptance.
Workhuman’s employee recognition platform, for example, integrates into Microsoft Teams. Integrations like these allow the new tool – in this case, recognition – to be used effectively and seamlessly across the whole user organisation, via applications employees are already familiar with.
Likewise, managers often lead digital transformation and the implementation of new technologies, so another way to ensure a smooth transition is to centralise systems to make it easier for team leaders to use and manage. For instance, many recognition programmes require manager approval for rewards, and features like a centralised hub make managers’ and employees’ jobs much easier, as everything can be controlled and analysed from one spot – allowing for quicker business decisions.
Keys to navigating digital transformation
While digital transformation stands as a business imperative, its success hinges on fostering the right organisational culture for effective implementation. Equally important is the careful selection of tools that seamlessly integrate new initiatives into existing workflows and are easy to manage.
By fostering an environment for change and prioritising user experience, finance firms can navigate digital transformation and continue to drive innovation.
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