What is Fintech
According to Arner, et al., (2015) “Financial technology” or “Fintech” can be referred as technology-enabled financial solutions. It covers the entire financial services industry without being specific to a particular sector within the industry.
Partnering with Fintech companies is being increasingly popular among Financial Institutions (FI’s) to disrupt the financial services industry. The FI’s are moving towards digitalization of products and services while automating the processes to enhance customer experience and to reduce the cost.
What is Human Capital
Bontis, et al., (1999) defines human capital as “the human factor in an organization; the combination of intelligence, skills and expertise which provides a distinct character to the organization. The human capital element of an organization, has the ability to learn, change and innovate if it was appropriately motivated can ensure survival in the long-run.”
Why Fintech and Human Capital are equally important in the banking sector in SL
Organizations operating in the Sri Lankan banking sector has been concentrating on shifting towards digitalization and automation during the recent past at a greater pace. The pandemic also has played a major role in increasing the shifting speed from conventional banking methods. Digitalized banking products, payment wallets to provide convenience and robotic process automation (RPA), machine learning (ML) to increase customer experience levels are highly important to be competitive in the banking sector in SL.
On the other hand, the banks require a pool
of talented and skilled workforce to promote, encourage and educate the
customers to switch to digital banking products while providing an unmatched
customer service. Apart from this the elderly client base and traditional customers
mostly residing in rural areas, intends to visit the bank physically to complete
their financial transactions expects to interact with the bank staff.
The human capital plays a vital role in addition to digitalization of traditional banking systems to build a loyal customer base which will ultimately result in retaining and expanding the banks market share.
Therefore, the banks are required to implement
suitable Human Capital Policies, Strategic Workforce plans in order to recruit,
train, promote and mobilize employees depending on the resourcing needs. Timely
training and talent development programs, recognition and rewarding systems are
critical to retain employees especially from headhunting by competitors.
References
ARNER, D., BARBERIES, J. & BUCKLEY, R., 2015. The
Evolution of Fintech: A new post-crisis paradigm?. University of New South
Wales Law Research Series, Volume 47.
BONTIS, N.,
DRAGONETTI, N. C., JACOBSEN, K. & ROOS, G., 1999. The Knowledge Toolbox: A
Review of Tools Available to Measure and Manage Intangible Resources.. European
Management Journal, 17(4), pp. 391-402.
ReplyDeleteBeing a professional banker, I perfectly agree with your comments with regard to importance of Fintech and Human Capital in the banking sector in SL.
It gave a huge space for banks to promote digital products among the public during the pandemic situation of the country. Though the majority of the customers prefer digital channels for their convenience, still a considerable volume of clients prefer physical participation which directly impact to create a loyal customer base.
However, banks always provide their best solutions to the customers to ensure highly satisfied customer service at all times.
Good job Zaman..
You have clearly described that how human capital can be utilized at a business. Especially in a bank or a finance institute. Good article.
ReplyDeleteAll the best !!!
Zaman, As you mentioned in your article technology is evolving in banking sector in srilanka. At the same time customer should be instructed to the digital product.
ReplyDeleteYou have clearly described about the importance of fintech and human capital in banking sector
Digitalization must be there for enhancement, but without human intervention the desired output will not be received. Especially like Sri Lanka where the majority of the customer base is either novice or reluctant to use the new technology. So the human capital is parallelly required. Nice concept
ReplyDeleteAgreed..
DeleteThankyou..
Fintech has played a major role in banking sector ever since the pandemic started by simplifying banking activities and human capital has also contributed immensely by improving customer service, building loyal customer base. Your article clearly explains the importance of both the factors. All the best!!
ReplyDeleteDigitalization & Automation both very important point for every industry. You have explained well abut the all the points of banking. Learned lot as Manufactruring person.
ReplyDeleteWell done 👍
As described in the article, digitalization is very important for the growth of banks and to remain competitive in today's highly competitive banking sector. A proper mix of digitalization and human capital is essential to maintain competitive advantage and to retain a loyal client base. Good article. All the Best!
ReplyDeleteThankyou
DeleteYou have clearly defined what fintech and human capital are, as well as why fintech and human capital are equally important in the banking industry. All the Best!
ReplyDeleteThankyou
DeleteIn the banking sector in sri lanka fintech and human capital are equally important for organizations. The bank are required to implement suitable human capital polices because of digitalisation of all banking systems. Well organised artical. Good luck..
ReplyDeleteVery interesting article about Financial technology.And the definitions and all gave good knowledge of FINTECH and the human capital
ReplyDeleteYou have well elaborated about what is Fintech and the human Capital. As an outsider of Banking sector like me can understand why is Fintech and Human Capital are equally important in the Banking sector in Sri Lanka. Further you have well explain the importance of Skill workers in the Banking sector
ReplyDeleteAs you have mentioned combination of both technology and human capital is vital for a long-lasting relationship with customers. Very interesting article. Good Luck
ReplyDeleteAs you have mentioned, human capital plays a major role in implementing these digitization initiatives. Bankers are taking actions for faster transition from traditional banking practices to digitization. good article.
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ReplyDeleteInteresting as well as a topic that has been talked about a lot in the past panadamic situation.
ReplyDeleteI also got a very clear understanding of this through your blog. Congratulations on continuing to submit blogs related to this new technology.