When considering the impact of technology on the future of work, the banking and finance industry often serves as the first point of reference and best source of examples. With profound knowledge in the field of both IT and financial services, Michael LEUNG, Group CEO of BOA International Financial Group, talks about the abilities our younger generation needs to survive and thrive in the new digital world.
“I expect a slight net gain in overall headcount within the industry, but there will be a shift.” Michael Leung
Bank customers and the general public who have seen the rapid shift towards online transactions and now hear the talk of virtual banks, cashless society, biometric security and so on, may have their own views on the benefits or otherwise of such developments.
But one thing is clear: further change is coming and the pace is only certain to accelerate in the next few years.
“I see no other industries, when compared with the banking and financial services sector, facing so much impactful change as a result of the progress in technology,” says Michael Leung, Group CEO of BOA International Financial Group. “For financial institutions, it is simply not possible nowadays to provide services without using technology or computers. The latest advances will continue to drive change and transform the sector. And, since most, if not all, people in Hong Kong use financial services, it is fair to say that every one of us will feel the impact.”
In his view, this transformation has also spurred important developments in the areas of collaboration and imagination.
Today’s banking and financial services are interconnected, not standalone. Indeed, the Hong Kong Monetary Authority (HKMA) is actively promoting the concept of Open Banking, which is leading to more collaboration not just among banks, but also with other non-bank companies to offer financial and lifestyle related products and services.
And, looking ahead, the Open Application Programming Interface (API) initiative, which the HKMA announced last year, is intended to encourage and facilitate more such cross-sector collaboration.
Using creativity
With regard to imagination, Leung notes that with so many new technologies coming into the picture – from big data and Artificial Intelligence to biometric authentication and Blockchain – qualified professionals now have extensive scope to devise new tech-driven business models, solutions and give their creativity free rein.
“Already, customers can simply use ‘one finger’ to complete banking transactions or trade stocks; they can even take part in the design of the user interface for themselves,” Leung says. “For anyone who has the power to imagine, there are almost unlimited possibilities. But that also means practitioners must pay close attention to the latest developments if they want to be prepared for the future of work.”
More specifically, with the HKMA recently granting the first batch of virtual banking licences in Hong Kong, Leung recommends keeping an eye on three key trends.
One is greater financial inclusion with the arrival of these new entrants on the local banking scene, opening up opportunities to help previously “under-served” customers in the lower-income group. The new options will offer more cost-effective banking services, for example personal loan or virtual credit card via a mobile phone.
The second is ever more digital innovations, bringing additional sales and service channels, as well as ways of onboarding and meeting customers’ needs. And the third is more competition for business between traditional banks and new players, who are looking to “revolutionize” banking services.
Shifting demand
With all these changes, Leung is confident the sector will see steady demand for new recruits and increasing need for knowledge workers.
“I expect a slight net gain in overall headcount within the industry, but there will be a shift,” he says. “For example, demand will decrease for tellers, data-entry staff, direct salespeople, and back-office employees, as many routine and repetitive tasks will be automated. In addition, older members of the workforce, who are likely less tech-savvy, will face more challenges and may find it difficult to transition.”
At the same time, though, the move towards automation and the wider use of things like “decision science” and “robo advisory” will require specialist talent to program computers and “train” robots. Employers will also need people to manage the various risks associated with technology which range from systems maintenance to liability, reputation and credit issues, for which “human wisdom” is essential.
In summarising the skills and abilities the younger generation should be looking to acquire, Leung refers to a handy ABCD mnemonic. Basically, they should aim to be familiar with matters relating to AI and analytics; biometrics and blockchain; cybersecurity and connectivity; and data mining and digital certification.
“The new generation coming into the workforce also needs ‘CORE’ skills,” says Leung, who is currently Chairman of the FinTech Committee at the Hong Kong Institute of Bankers and a former President of the Hong Kong Computer Society. “That stands for being curious, open-minded, risk-taking and enthusiastic.”
He notes too that industry, government and universities must all play their part in developing the required abilities and aptitudes for the future workforce.
The right education clearly creates the foundation for everything that comes later. And, in this respect, he encourages more direct collaboration between universities and relevant industries, as well as more interdisciplinary programs.
“I strongly recommend the concept of a ‘double-knowledge’ professional,” Leung says. “For example, an IT student should also be able to study another discipline like business or accounting. On the road ahead, we will see an intellectual evolution where digital capability will be one of the keys to success. Some of the workforce will inevitably need to retrain to keep pace with a transforming world. That’s the simple reality.”
Michael Leung
- Group CEO of BOA International Financial Group
- Chairman of FinTech Committee, The Hong Kong Institute of Bankers
- Former President of the Hong Kong Computer Society