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Shaping up of Banking Industry 5 years from now & how GTC’s are leading the way

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Like any other industry, banking industry has always been able to recover from financial downturns and crisis. The 2020 COVID-19 pandemic has also paved the way for banks across the globe think differently. Banks in 2026 or maybe 2030-how will they look or what are the changes which will drive them?

Some of the key drivers for the banking industry 5 years from now will be Customer Experience(CX), upgrading legacy systems, fast track cloud adoption, reduced spend on branch banking and discovery of newer markets to function.

Along with the drivers are associated some of the key challenges as tight control on regulatory compliance across different geographies, increased technology spend on regulatory & fraud controls, increased cyber security measures and controls.

How are Banking industry Global Transformation centres(GTC) post pandemic thinking of with the industry challenges and how are they gearing up to cater to some of the key drivers which would shape up the industry 5 years from now?

With Customer experience(CX) or as I say, CSE(Customer Super experience) being one of the focal areas, GTC’s are trying to help in transforming customer experience through Web/mobile transformation, using Garage methods, strategic design and modelling, Agile ways of working. Ease of banking with single sign on to entire banking supermart, easy to use mobile banking will increase customer loyalty scores and help in adding new customers specially Gen Z who are more tech-savvy. As banks move away from brick and mortar branch banking to more digitally aligned invisible banking, technology and talent pool from partner ecosystem and GTC’s will lead the way.

GTC’s with their talent pool, Design centres for Design thinking & Garage workshops, data driven AI CoE’s, product accelerators are helping banks focus on ways of increasing customer pool. Talent pool adopting to focused trainings on new edge cutting technologies, cloud trainings and domain led introductory trainings is helping transformation at scale.

Partner ecosystem led skillset driven trainings in the areas of payments and integration, Open Banking, blockchain in the areas of Trade Finance and Reconciliation are some of the key drivers for the success of the new age future banks. Talent trained on cross domains with multi cloud platform knowledge and skill upgradation can help GTC’s faster adopt cloud migration within the time frame and help building the future technology driven banks. Competitive ecosystem driven by Tier 1 cities was common before the COVID-19 pandemic. The flexibility of WFH has also help harness talent across India and now there is a focus on Tier 2 cities as Ahmedabad, Vadodara, Kochi, Bhubaneshwar, Coimbatore, Lucknow, Jaipur, Thiruvananthapuram as key alternatives.

With larger partner ecosystem for GTC’s opening offices in the Tier-2 cities, considerable talent pool equipped in latest technologies as AI, ML, Big data, Data science, Automation will be available in the coming years at a lesser cost than Tier 1 cities.

Strategy focused roles are now being driven from the GTC’s. Diversity based hiring and RTW(return to work) especially women returnees, has also helped in increasing the GTC talent pool.

As the talent market has heated up with banks pushing transformation levers, GTC’s might also need to look at other talent markets outside India as Romania, Poland(Eastern Europe), Guangzhou(China), Brazil(South America).

GTC’s will have to help to increase their topline revenue and profitability and work on aggressively bringing down the cost levers, driving larger sourcing strategies, bringing to the fore a more inclusive innovation culture. This will help the banking GTC’s in India lead the way to the future ready digital bank.